$8.25-Billion Oil Sands Expansion Revived on Back of MOU

Canadian Natural Resources Ltd.'s (CNQ-T) $8.25-billion expansion of its Jackpine oil sands project in northern Alberta is back on the table after a recent memorandum of understanding between Alberta, Ottawa and five oil companies.

The MOU, reached July 2, aims to boost crude production by providing assurance that the objectives outlined will be met, including expanding global market access for Canadian oil, reducing emissions, and streamlining regulatory frameworks.

Canadian Natural president Scott Stauth said in an interview that if there is a successful agreement, the company will take another look at Jackpine, as well as expansions of its Jackfish and Horizon operations and a new greenfield project called Pike 2.

The agreements must provide oil companies with the assurance that all objectives outlined in the MOU will be met before projects can proceed. Stauth emphasized that projects will remain on hold until an agreement is reached, and even then will only proceed if they generate strong returns.