Oil sands fire threat returns: UpdateOREANDA-NEWS. May 18, 2016. Oil sands operators north of the fire-ravaged Fort McMurray, Alberta, were forced to once again shut down plants and evacuate up to 8,000 workers late last night because of rapidly moving forest fires.

Syncrude Canada and Suncor Energy suspended work at their plants only days after starting to ramp up operations, as the fire changed diretions and returned to some areas. Syncrude and Suncor's base plant operations produce more than 500,000 b/d. The mandatory evacuation was issued at about 12am ET.

"Based on the changed situation yesterday, we began and have since completed an orderly shutdown of our production facilities in the region," including MacKay River, Firebag and the base plant, Suncor said. No Suncor assets have been damaged.

The fire has grown to 3,500km?, from 2,850km? yesterday, Alberta premier Rachel Notley said this morning. Speaking at a news conference in the provincial capital Edmonton, Notley said a 665-unit work camp had burnt down and two other camps, the Noralta Loge and Birch Creek camps, were at risk as the wind was set to push the fire toward the facilities.

"Mother nature continues to be our foe in this regard and not our friend," she said.

Approximately 1.2mn b/d of oil sands production was suspended at what was thought the height of the fire-related crisis nearly two weeks ago. More than 90,000 people were evacuated from the northeastern region of the province starting 3 May. A dozen oil sands operations were shut down as precautionary measures, with at least one, Nexen's Long Lake thermal operation south of Fort McMurray, suffering damage.

Other operators, such as Husky Energy and Statoil, suspended or reduced production last week because of shortages of diluent as pipeline operations into the region were offline. Husky said its Sunrise plant remains offline with reduced staff on site.

Suncor's Firebag facilty has started ramping up operations, but workers at the 35,000 b/d MacKay River plant located further north were evacuated, the producer said.

Royal Dutch Shell, which restarted reduced production at its Jackpine and Muskeg River mines last week, said it was monitoring the situation and was ready to move people out if needed.

Also last night Enbridge said it was joining forces with provincial fire crews to contain a fire near its Cheecham Terminal, a central storage hub for oil sands in the region, located about 70km south of the city. Enbridge said it was widening an existing firebreak around the terminal and was considering spraying down the facilities.

"Some pipelines into and out of the terminal are operating, and we continue to monitor the situation very closely," Enbridge said.

Last week Enbridge said it had resumed operations at the Cheecham terminal, and was pushing barrels into its Waupisoo pipeline, running from Cheecham to Edmonton, as well as the Athabasca pipeline, which stretches from south of Fort McMurray to near Hardisty, Alberta.

The province reported eight new wild fire starts in the region, five of which are out of control. The blaze is about 10 km from the neighboring province of Saskatchewan to the east, and is expected to reach the border this evening.

In a report issued today, the Conference Board of Canada said the lost production over 14 days totaled approximately C\\$985mn (\\$763mn) in lost real GDP.