THE WALL STREET JOURNAL: Shell Canada Files Regulatory Applications For Oil Sands Expansion Project: “CALGARY -- Shell Canada Ltd. has filed regulatory applications to expand capacity at both the Muskeg River Mine and Scotford Upgrader, which together make up the Athabasca Oil Sands Project in Alberta. Shell Canada owns 60% of the project.” (ShellNews.net) Posted 30 April 05
DOW JONES NEWSWIRES
CALGARY -- Shell Canada Ltd. (SHC.T) has filed regulatory applications to expand capacity at both the Muskeg River Mine and Scotford Upgrader, which together make up the Athabasca Oil Sands Project in Alberta.
Shell Canada owns 60% of the project.
In a news release, Shell Canada said the Muskeg River Mine expansion plan includes developing additional mining areas on the west side of Lease 13 and on Lease 90, adding another bitumen extraction train to the existing plant and a number of debottlenecking projects.
These plans will increase the capacity of the mine to about 300,000 barrels a day from 155,000 b/d, it noted.
Company Web Site: http://www.shell.ca
Shell Canada Ltd. (SHC.T) said regulatory approval for the Muskeg River Mine expansion is expected in mid-2006. This, in combination with the Jackpine Mine approval received last year, would provide the company with regulatory approvals for mining developments encompassing all of Lease 13 and Lease 90, totaling 500,000 barrels a day of bitumen, it said.
It said the expansion plan for the Scotford Upgrader includes the addition of a third bitumen upgrading train which, along with debottlenecking of the existing facilities, will increase upgrading capacity to about 300,000 b/d. Regulatory approval for this expansion project is also anticipated mid-2006. Further additions to upgrading capacity will be made in due course to bring total capacity to 500,000 b/d, in line with future mining expansions, it noted.
Subject to final investment approvals, construction of the first expansion projects on Lease 13 and at the Scotford Upgrader is expected to start in 2006 and to be completed in 2009. These projects, including debottlenecking of the existing facilities, are expected to increase synthetic crude production to about 300,000 b/d by 2010. Actual timing for these projects will depend on such factors as the outcome of the regulatory process, market conditions and final project costs.
Shell Canada said it will provide a capital cost estimate for these projects next year, following regulatory and final investment approvals.
The Athabasca Oil Sands Project is a joint venture among Shell Canada, Chevron Canada Ltd. and Western Oil Sands Inc.
-Carolyn King, Dow Jones Newswires; 416-306-2100
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