The Sturgeon Upgrader will process bitumen feedstock from the Fort Hills mine, 90 km north of Fort McMurray, into synthetic crude. The upgraded crude will then be marketed for refining into consumer products such as gasoline and diesel.

"We have a proven track record in successfully executing large oil and gas projects worldwide, and we are delighted to be selected for a key portion of this significant project," said Pierre Duhaime, Executive Vice-President, SNC-Lavalin Group Inc.

"This contract reflects the quality of our team and its project management and refining expertise," said Jean Nehme, a Senior Vice-President and General Manager, SNC-Lavalin.

The front-end engineering design phase of the project will begin immediately. The work will be carried out from SNC-Lavalin's Montreal office, where this phase of the project is expected to generate approximately 100 jobs.

SNC-Lavalin (TSX: SNC) is one of the leading groups of engineering and construction companies in the world, a major player in the ownership of infrastructure and in operations and maintenance services. The SNC-Lavalin companies have offices across Canada and in 30 other countries around the world and are currently working in some 100 countries. www.snclavalin.com

Fort Hills Energy L.P. consists of Petro-Canada with a 55% working interest, UTS Energy Corporation with a 30% working interest and Teck Cominco Limited with a 15% working interest, with Petro-Canada Oil Sands Inc., a wholly owned subsidiary of Petro-Canada, as the contract operator for the project.