CALGARY, ALBERTA--(Marketwire - Dec. 2, 2008) - ATCO Structures today announced that its contract to design, manufacture and install the 2,000-person workforce housing camp for the Fort Hills Energy Limited Partnership (FHELP) oil sands project north of Fort McMurray has been cancelled. ATCO Structures has completed approximately 25 per cent of its contract and further construction is now stopped. The full impact to ATCO Structures of this cancellation will be determined in the first quarter of 2009, once terms have been negotiated.
ATCO Structures won the contract to manufacture the camp in May, 2008. The project was delayed last month. "As a subcontractor to the Fort Hills project, ATCO Structures is impacted by the cancellation of this contract," said Harry Wilmot, President and Chief Operating Officer, ATCO Structures. "We staff our facilities in order to meet our customer's requirements. With the loss of this contract, we will review our staff count and refocus our efforts on business development."
The Fort Hills Energy Limited Partnership consists of Petro-Canada, UTS Energy Corporation and Teck Cominco, with Petro-Canada Oil Sands Inc. (PCOSI), a wholly-owned subsidiary of Petro-Canada, the contract operator of the project. The group has said it will determine whether it will move forward with its oil sands project sometime in 2009.
ATCO Structures Inc., one of the ATCO Group of companies, has manufactured, sold and leased workforce housing and modular buildings since 1947 in more than 100 countries around the world. The company is recognized for its capabilities in delivering custom solutions for shelter challenges, especially in remote and extreme environments.
ATCO Group is an Alberta-based worldwide organization of companies with assets of approximately $8.5 billion and more than 7,800 people, actively engaged in Power Generation, Utilities (natural gas and electricity transmission and distribution) and Global Enterprises (industrial manufacturing, technology, logistics and energy services). More information about ATCO can be found at www.atco.com.
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FOR FURTHER INFORMATION PLEASE CONTACT:
ATCO Structures Inc.
President and Chief Operating Officer
(403) 292-7757 or Cell: (403) 710-4793