Shell Canada-project ready to double

The Athabasca oil sands project in northern Alberta is kicking things up a notch by filing regulatory plans to almost double output to 300,000 barrels per day.

Led by Shell Canada at 60 percent, with Western Oil Sands and Chevron Canada Resources as partners, the consortium is hoping for mid-2006 approval to expand its Muskeg River mine and Scotford upgrader to boost output from the current 155,000 bpd.

Along with last year’s approval of the Jackpine mine proposal, the latest mine and upgrader application targets eventual output of 500,000 bpd.

The partners will tackle the C$4 billion expansion in “building blocks” of 100,000 bpd each to take advantage of lessons learned in the first stage that was hit with a series of cost over-runs and new construction techniques.

Increased crude production from the first expansion projects is expected in 2010, involving a peak combined construction force of 10,400.

—Gary Park