EXHIBIT 99.2
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[GRAPHICS OMITTED - LOGO, PHOTOGRAPHS]
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News Release ------------- --------------- ------------
Discipline Opportunity Strategy
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CANADIAN NATURAL RESOURCES LIMITED ANNOUNCES
THIRD QUARTER 2007 UPDATE ON THE PROGRESS OF
THE HORIZON OIL SANDS PROJECT
CALGARY, ALBERTA - OCTOBER 31, 2007 - FOR IMMEDIATE RELEASE
Canadian Natural Resources Limited ("Canadian Natural") is pleased to provide
its regular quarterly update on the Horizon Oil Sands Project ("Horizon
Project").
"Canadian Natural achieved 9% progress on the Horizon Project during the third
quarter of 2007 and is still positioned to meet an overall 90% plus completion
by year end. With overall Engineering and Procurement substantially complete
and Construction at 76% complete, we remain on track for first oil in the third
quarter of 2008" commented Real Doucet, Sr. Vice President, Oil Sands.
He continued, "Progress in the third quarter of 2007 did slip against our
baseline as a result of distractions resulting from Alberta-wide labour
negotiations that occurred throughout the summer. These challenges appear to be
behind the Horizon Project and our contractors current workforce of 8,700
people are focused on completing as much work as possible before winter.
During the quarter, the raw water pond was completed using our own mining
operations workforce. In addition, pre-commissioning work has been initiated in
the areas of utilities and offsites and bitumen production with significant
hydro-testing targeted for completion before winter conditions set in.
Commissioning and start-up plans have been reviewed and confirmed by external
industry experts and have assisted in optimizing our processes. During the
fourth quarter of 2007 we will carry out a formalized detailed risk assessment
of our commissioning and start-up schedule to identify areas of exposure and
ensure adequate contingency plans are developed. Also, in the fourth quarter of
2007 several plants are targeted to reach mechanical completion and we will
begin the transition to commissioning and start-up. Training programs are in
place and, in anticipation of turnover, Operations have commenced the review of
systems in certain plants.
Previous decisions to defer several contracts and delay certain projects to
capture cost reduction opportunities has caused overlap between some
construction projects on the site and has resulted in an increase in our peak
project manpower requirements. Our supporting camp and transportation
infrastructure has been successfully expanded to accommodate the higher peak in
manpower to ensure workers are adequately accommodated.
As a result some work has been pushed into the more challenging winter months,
resulting in a modest increase in the forecast completion cost for the Horizon
Project. Our current Horizon Project completion cost forecast has been
increased from the 5% to 12% range provided in our first quarter 2007 Horizon
Project Update to an 8% to 14% range over the original $6.8 billion estimate."
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HORIZON PROJECT STATUS SUMMARY Jun 30, 2007 Sep 30, 2007 Dec 31, 2007
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Original Original
Actual Actual Plan Forecast Plan
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Phase 1 - Work progress (cumulative) 75% 84% 88% 90% 94%
Phase 1 - Construction capital spending* (cumulative) 79% 89% 85% 99% 92%
*Relative to overall Phase 1 project capital of $6.8 billion
ACCOMPLISHED TO THE END OF THE THIRD QUARTER OF 2007
DETAILED ENGINEERING
o Overall detailed engineering 98% complete and substantially completed in
most areas.
PROCUREMENT
o Overall procurement progress is 98% complete.
o Have awarded over $5.5 billion in purchase orders and contracts to date.
o Delivered over 35,000 standard loads of all kinds to site.
o Operations and maintenance service and supply agreements are in
negotiation.
MODULARIZATION
o Delivered an additional 80 oversized loads to site for a total of 1,504
loads, which represents approximately 91% of the total requirement.
CONSTRUCTION
o Overall construction progress is 76% complete.
o Mine overburden removal has moved 43.8 million bank cubic meters, which
represents approximately 63% of the total to be moved and is slightly
ahead of schedule.
o Energized Main Electrical Substations.
o Completed construction of Raw Water Pond.
o Started pre-commissioning activities in Bitumen Production Areas.
o Froth tank completed and hydro-tested.
o Commenced extraction plant hydro-testing.
o Permanent power energized in R1/R2 corridors pumphouses.
o Started commissioning of Recycle Water Pond.
MILESTONES FOR THE FOURTH QUARTER OF 2007
o Complete the closure of Dyke 10 (external tailings pond) in Mining.
o Complete erection of Crushing Plants and conveyors in Ore Preparation
Area.
o Complete Primary Separation Cells in Extraction.
o Complete Main Control Room and Distributed Control Systems installation.
o Complete construction of Main Laboratory.
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PLANT AND SYSTEM COMMISSIONING SCHEDULE
COMPLETED
o Permanent Potable Water Treatment
o Permanent Sewage Treatment
o Natural Gas Pipeline
o Raw and Recycled Water Pipelines
o River Water Intake and Pumphouse
Q4 2007
o Raw Water Pond and Pumphouse
o Recycle Water Pond and Pumphouse
o Extraction
o Electrical Distribution System
Q1 2008
o Cooling and Heating System
o Main Pipe Rack
Q2 2008
o Cogeneration
o Ore Preparation Plant
o Froth Treatment
o Pipeline Corridors
o Hydrogen Plant
o Coker / Diluent Recovery Unit
o Gas Treating and Sulphur Recovery
o Synthetic crude oil pipeline
o Sulphur block pipelines
o West Tank Farm (inter-plant)
Q3 2008
o Hydrotreating
o East Tank Farm (product)
A picture gallery providing visual updates on construction progress is
available on the Company's website
(http://www.cnrl.com/horizon/about_horizon/photo_gallery.html).
The Company's results for the third quarter of 2007 will be released on
November 1, 2007. A conference call will be held on that day at 9:00 a.m.
Mountain Daylight Time, 11:00 a.m. Eastern Daylight Time.
Canadian Natural is a senior oil and natural gas production company, with
continuing operations in its core areas located in Western Canada, the U.K.
portion of the North Sea and Offshore West Africa.
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FORWARD-LOOKING STATEMENTS
Certain statements in this document or documents incorporated herein by
reference for Canadian Natural Resources Limited (the "Company") constitute
"forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
generally be identified as such because of the context of the statements
including words such as the Company "believes", "anticipates", "expects",
"plans", "estimates", "targets", or words of a similar nature.
The forward-looking statements are based on current expectations and are
subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, performance or achievements of the Company, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such factors include, among others: general economic and business
conditions which will, among other things, impact demand for and market prices
of the Company's products; foreign currency exchange rates; economic conditions
in the countries and regions in which the Company conducts business; political
uncertainty, including actions of or against terrorists, insurgent groups or
other conflict including conflict between states; industry capacity; ability of
the Company to implement its business strategy, including exploration and
development activities; impact of competition; availability and cost of
seismic, drilling and other equipment; ability of the Company to complete its
capital programs; ability of the Company to transport its products to market;
potential delays or changes in plans with respect to exploration or development
projects or capital expenditures; ability of the Company to attract the
necessary labour required to build its projects; operating hazards and other
difficulties inherent in the exploration for and production and sale of crude
oil and natural gas; availability and cost of financing; success of exploration
and development activities; timing and success of integrating the business and
operations of acquired companies; production levels; uncertainty of reserve
estimates; actions by governmental authorities; government regulations and the
expenditures required to comply with them (especially safety and environmental
laws and regulations); asset retirement obligations; and other circumstances
affecting revenues and expenses. Our domestic operations are subject to
governmental risks that may impact our operations. Our domestic operations have
been, and at times in the future may be affected by political developments and
by federal, provincial and local laws and regulations such as restrictions on
production, changes in taxes, royalties and other amounts payable to
governments or governmental agencies, price or gathering rate controls and
environmental protection regulations. The impact of any one factor on a
particular forward-looking statement is not determinable with certainty as such
factors are interdependent upon other factors, and the Company's course of
action would depend upon its assessment of the future considering all
information then available.
Statements relating to "reserves" are deemed to be forward-looking statements
as they involve the implied assessment based on certain estimates and
assumptions that the reserves described can be profitably produced in the
future.
Readers are cautioned that the foregoing list of important factors is not
exhaustive. Although the Company believes that the expectations conveyed by the
forward-looking statements are reasonable based on information available to it
on the date such forward-looking statements are made, no assurances can be
given as to future results, levels of activity and achievements. All subsequent
forward-looking statements, whether written or oral, attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by these cautionary statements. Except as required by law, the Company
assumes no obligation to update forward-looking statements should circumstances
or Management's estimates or opinions change.
For further information, please contact:
CANADIAN NATURAL RESOURCES LIMITED
2500, 855 - 2nd Street S.W.
Calgary, Alberta
T2P 4J8
TELEPHONE: (403) 514-7777 ALLAN P. MARKIN DOUGLAS A. PROLL
Chairman Chief Financial Officer and
FACSIMILE: (403) 514-7888 Senior Vice-President, Finance
EMAIL: ir@cnrl.com JOHN G. LANGILLE
WEBSITE: www.cnrl.com Vice-Chairman COREY B. BIEBER
Vice-President,
TRADING SYMBOL - CNQ STEVE W. LAUT Finance & Investor Relations
Toronto Stock Exchange President and
New York Stock Exchange Chief Operating Officer