REGINA (Staff) – The Saskatchewan government and Husky Oil have announced they are buying out Alberta and Ottawa and will become 50-50 partners in the Bi-Provincial Upgrader at Lloydminster.
The upgrader, which converts heavy oil into synthetic light crude, has lost $88 million in two years of operation.
However, Crown Investments minister John Penner said the project should have a positive cash flow by next year.
The province will pay a total of $57 million for its share, including $14 million to cover ongoing losses. Saskatchewan invested $261 million for the 17.5 percent share of the facility it currently owns.
