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Project to supply 10 per cent of Canada’s oil needs

Posted: 23 June 2003

Fort McMurray and Fort Saskatchewan, Alberta, Canada - The owners of the Athabasca Oil Sands Project (AOSP) celebrated the Big Opening of the first integrated oil sands operation in 25 years with events that spanned the 450 kilometres between the Muskeg River Mine and the Scotford Upgrader.

“The scale and complexity of the project, from the Muskeg River Mine to the Scotford Upgrader, is impressive on a world scale. It has been a very big achievement to get it done and done safely, calling on all our resources, talents and determination. From this single operation, we’ll provide the equivalent of ten per cent of Canada’s oil needs and maybe even more. The AOSP is a new, significant and secure source of supply for the North American market,” said Tim Faithfull, President and Chief Executive Officer, Shell Canada Limited during the opening ceremonies.

The Big Opening of this integrated oil sands project included representatives from Shell Canada, the Royal Dutch/Shell Group of Companies, ChevronTexaco, Western Oil Sands, as well as Alberta Premier Ralph Klein and other special guests.

“The Athabasca Oil Sands Project will bring tremendous benefits to Albertans, including hundreds of long-term jobs and enough oil production to power four out of every five cars in the province,” said Alberta Premier Ralph Klein. “Albertans can be proud of the hard work and cooperation that is going into this oil sands project - a project that will provide a secure source of oil for Alberta, Canada, and the entire continent for many years to come.”

The AOSP includes the Muskeg River Mine and extraction plant, located about 75 kilometres north of Fort McMurray and the Scotford Upgrader located adjacent to Shell’s Scotford Refinery, north of Fort Saskatchewan, Alberta.

“This project is very significant for us… adding about four per cent to Shell’s worldwide oil production,” said Paul Skinner, Managing Director, Royal Dutch/Shell Group of Companies and Chair of Shell Canada’s Board of Directors. “The project has great potential for growth, which reflects the global importance of Alberta’s oil sands… with more recoverable resources than in Saudi Arabia.”

“It’s a day to celebrate - for the people of this province and this country. It is difficult not to see that the oil sands are on the rise and that a large part of the future of the petroleum industry is right here in Alberta,” said Ken Godard, Vice President and Manager, Western Canadian Business Unit, Chevron Canada Resources.

“We made a commitment to help build a sustainable, integrated project that would continue to provide value to our communities, our investors and Canadians for decades to come,” said Guy Turcotte, President, Western Oil Sands LP. “Based on the remarkable accomplishments so far, we have every confidence we’ll earn an excellent return on our investment as the result of the huge capacity for sustainable growth.”

The Athabasca Oil Sands Project is a joint venture of Shell Canada Limited (60 per cent), Chevron Canada Limited (20 per cent) and Western Oil Sands L.P. (20 per cent). The AOSP has been one of the world’s largest construction projects in recent years. When the project ramps up to full production of 155,000 barrels per day of bitumen in 2003, it will supply the equivalent of 10 per cent of Canada’s oil needs.

Posted by Richard Price, Editor Pipeline Magazine

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