CALGARY – SHELL CANADA has issued a formal proposal to its partners to proceed with Phase I expansion of the Athabasca oil sands project, that includes the Muskeg River mine. WESTERN OIL SANDS (20%) and CHEVRONTEXACO (20%) have 90 days to respond.
Only two weeks ago, Shell said the anticipated cost of expanding the project had grown 50% to $7.3 billion (see CMJ Net News, July 16, 2006).
Shell wants to boost daily production by 100,000 bbl, reaching a rate of 255,000 bbl/day by late 2009. The project will be integrated with the existing facilities. It includes developing a new mine on Lease 13 and adding capacity at the Scotford upgrader. Within the next decade, the company wants to reach daily production of 550,000 bbl.
The Athabasca oil sands project is discussed in detail at www.Shell.ca.
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