Bitumen Royalty-In-Kind

News Release, First bitumen refinery agreement promotes value-added development, February 16, 2011
    News conference - Photos 

Agreements

• Agreement to Process Schedules 1, 2, 4, 5, 6, 8, 10, 12
• Agreement to Market Schedules 3 & 4

Frequently Asked Questions

Fact Sheet Talk about north west upgrading/CNRL refinery (February 2011) 

More information

• Bitumen production process (5:57 min) produced by Canadian Natural Resources Ltd. 
• Common petroleum uses in your home  or high resolution

• Bitumen by-products  or high resolution 

News release, Province begins negotiations for new bitumen refinery project, May 18, 2010.

As the resource owner, the Government of Alberta is entitled to take its royalty share of bitumen production in kind, as it does currently for conventional oil production. The Government’s bitumen royalty volumes will be a significant and growing source of reliable hydrocarbon feedstock into the future. The Government will consider having a portion of its bitumen royalty in-kind volumes commercially upgraded to higher value products in the province.

The Alberta Royalty Framework provided the option of "...taking bitumen in kind rather than cash. Bitumen could be used strategically to supply potential upgraders and refineries in Alberta. The Crown would share in potential gains ( and risks) in upgrading, refining and petrochemical markets, and optimize its royalty share.”      

• Authorization
• Objectives and Principles of BRIK
• Request for Expression of Interest (REOI) Process
• BRIK Frequently Asked Questions (May 18, 2010) 
  • Industry Paper - BRIK Infrastructure and Bitumen Supply Availability(November 13, 2009)
  • Discussion Paper - BRIK Physical Transfer Point & Delivery Location
  • Discussion Paper - Valuing Bitumen for the BRIK Program

Two Requests for Proposal (RFPs) were used to develop this program, the initial RFP was issued in July and the final RFP was issued in October.  The final RFP closed on January 27th, 2010.

A Government of Alberta cross ministry committee reviewed all the applicants in accordance with the criteria established within the RFP. The committee provided recommendations to the Minister of Energy for final approval of successful applicants. in July 2009, the Alberta government announced that it would begin negotiations with the successful applicant North West Upgrading Inc. Once completed, North West Upgrading would process 75,000 barrels per day of royalty in-kind-bitumen on behalf of the province.

Read more about the RFP process and Fairness Monitor.