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.