Business
AOSP Expansion 1 to proceed
AOSP Expansion 1 to proceed.
About this update from Mapath Capital Corp
[{"type":"text","content":"\n\n\n\n\nCALGARY, Nov. 1 /CNW/ - Shell Canada Limited today announced its decision\nto proceed with the Athabasca Oil Sands Project (AOSP) Expansion 1. This is a\n100,000 barrels per day (bbls/d) expansion of oil sands mining and upgrading\nfacilities and is subject to final regulatory approvals.\n\"The heated market has upped the stakes on oil sands investments,\" said\nClive Mather, Shell Canada's President and CEO. \"However, our analysis is that\nincreasing world demand for energy will encourage the development of\nunconventional resources now and into the future. We take the long term view\nof commodity prices, and intend to invest wisely through the cycle to reach\nour minable bitumen production goal of 550,000 bbls/d.\" (330,000 bbls/d Shell\nCanada share).\nMather continued, \"Shell Canada has some of the best land and minable ore\nquality in the Athabasca area. With billions of barrels of bitumen in place,\nwe see clear potential for sustained profitable growth.\"\nAs disclosed on July 28, 2006, the cost estimates for AOSP Expansion 1\nindicate a capital intensity that ranges between $100,000 and $128,000 per\nflowing barrel. The expansion is a sound investment under a range of commodity\nprices and will increase AOSP bitumen production and upgrading design capacity\nto more than 255,000 bbls/d by 2010. With this final investment decision, the\nCompany's proved and probable minable bitumen reserves will increase by 631\nmillion barrels.\n\n>\n\nFederal and provincial cabinet approvals for Jackpine Mine were received\nin 2004 and the Scotford Upgrader Expansion received Alberta Energy and\nUtilities Board approval in September 2006. With the application and public\nhearings complete, a regulatory decision on the Muskeg River Mine Expansion,\nincluding the new froth treatment facilities, is anticipated by year-end.\nThe AOSP minority owners Chevron Canada Limited (20 per cent) and Western\nOil Sands L.P. (20 per cent) have also approved their investment in AOSP\nExpansion 1.\nAOSP operations and growth plans require extensive consultation with\nlocal communities, including aboriginal neighbours, as well as the preparation\nof comprehensive environmental assessments and management plans. AOSP\nExpansion 1 calls for more than 6,000 tradespeople at peak of construction in\n2008, and more than 700 new permanent operating job...