Canadian Mining Journal

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CAPITAL SPENDING – Shell, Western Oil Sands promise expansion funding

ALBERTA - All it takes is money in these days of growing construction costs to expand an oil sands project. And the...



ALBERTA – All it takes is money in these days of growing construction costs to expand an oil sands project. And the Alberta Oil Sands Partnership (AOSP) is in need of $555 million next year if it is to reach its goal of 500,000 bbl/day in the next decade. Total cost of the expansion is expected to be $7.3 billion.

SHELL CANADA, operator and 60% owner of the Muskeg River mine and recovery plant, says it will spend $1.57 billion on the AOSP expansion during 2007. The company’s total oil sands capital budget is $2.45 billion, including $170 million for pre-development of the expansion, $220 million for the AOSP base business, and $490 million for growth of in situ projects.

WESTERN OIL SANDS, which holds 20% of the partnership, is committing $655 million of its $715 million 2007 capital expenditures budget to the expansion north of Fort McMurray.

The remaining 20% of the AOSP project is held by CHEVRONTEXACO.

Job opportunities at the AOSP may be investigated at www.AlbianSands.com.


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