HUSKY OIL TO EXPAND THE LLOYDMINSTER BI-PROVINCIAL UPGRADER

"Husky's plan to expand it's heavy oil upgrader near Lloydminster is

good news for Saskatchewan," Deputy Premier and Crown Investments

Corporation Minister Dwain Lingenfelter said today. He was responding

to the announcement by Husky Oil Ltd. that it will seek regulatory

approval to more than double the upgrader's production of synthetic

crude oil and other products to 150,000 barrels a day.



"When we sold the province's 50 per cent share in the Bi-Provincial

Upgrader (BPU) to Husky a commitment to expand the plant if

commercially feasible was part of the agreement," Lingenfelter said.

"We are very pleased to hear that the company will be investing

$500 million for this expansion project."



Husky estimates that the project will create 1450 person years of

design and construction employment and 75 permanent jobs in the

expanded upgrader. About 200 more jobs will be created through

related activity such as supplying the increased needs of the plant.



"The expansion will have a very positive long term impact on the

economy of west-central Saskatchewan," Lingenfelter said. "More than

doubling the BPU's output will require a similar increase in the heavy

oil feedstock and other goods and services that go into the plant.

Drilling new wells, transporting more materials and all the other

activities will create a lot of employment and help keep the economy

moving ahead."



"We appreciate Husky's decision to expand its Lloydminster

upgrader and its ongoing commitment to the heavy oil industry in

our province," Lingenfelter said.



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For more information, contact:



Ted Boyle

CIC

Regina

Phone: (306)787-9039