The Athabasca Oil Sands Project (AOSP), a joint venture (Shell 60%) has a current capacity of 155,000 bpd of synthetic crude, with potential to achieve production licences of 770,000 bpd. Today the AOSP consists of the Muskeg River Mine and the Scotford Upgrader, located in Alberta, Canada. A 100,000 barrel-a-day expansion is underway.
Key facts
| Location: | Alberta, Canada |
| Category: | Oil Sands |
| Owners: | Shell 60%, Chevron 20%, Marathon 20% |
| Base Project: | start-up 2003; 155 kboe/d capacity |
| Expansion Project 1: | additional 100 kboe/d capacity |
| Key contractors (Expansion 1): | AMEC-Colt (upstream), Bantrel (downstream) |
Technology
The Calgary Research Centre (CRC) undertakes research and technology, providing laboratory and technical services to Shell in Canada.
The CRC employs more than 200 scientists, technologists and engineers focused on ensuring a smaller footprint for our operations, reduced water usage and reduced greenhouse gas emissions from Canada’s oil sands developments.
Shell Enhance, a new high temperature froth treatment process, will reduce energy usage by about 10%, avoiding 40,000 tonnes of greenhouse gas emissions per year. Developed by scientists at Shell and Natural Resources Canada, Shell Enhance will be built into AOSP Expansion 1.
Current developments
In 2007 Shell applied to increase bitumen production from its oil sands leases up to 770,000 barrels per day, and increase bitumen upgrading licenses to 690,000 barrels per day.
Today Shell has regulatory approvals in place for Muskeg River Mine, Muskeg River Mine Expansion and Jackpine Mine, enabling Shell to produce a total of 470,000 bbl/d of mineable bitumen. In addition, Shell has existing licenses for 290,000 bbl/d of synthetic crude production at the Upgrader.
2007 Regulatory Applications:
- Jackpine Mine Expansion: a proposed expansion of Jackpine Mine with 100,000 barrels a day, including development activities on leases 88, 89, 15, 631, 632.
- Pierre River Mine: a proposed 200,000 barrel-a-day development on the west side of the Athabasca River, initially on leases 9 and 17 and progressing to leases 309, 310, 351, 352.
- Scotford Upgrader 2: a proposed 100% Shell- equity 400,000 barrel-a-day bitumen upgrading facility located adjacent to the existing AOSP Scotford Upgrader. Shell anticipates decisions from Alberta and Canadian regulators on Jackpine Mine Expansion, Pierre River Mine and Scotford Upgrader 2 by the end of 2009. A resource assessment of additional Shell leases north of Pierre River Mine is ongoing.
Environment and society
Spending in Canada for supplies and services was ~ $790 million, with approximately $750 million spending in the province of Alberta and more than $55 million paid to Aboriginal contractors.
For the Athabasca Oil Sands Project phase 1 and future phases, Shell will meet federal and provincial government regulations in Canada, currently being enacted. Shell will continue to seek sustainable opportunities for GHG emission reduction. CO2 management plans include carbon capture and sequestration at the Scotford Upgrader.
A water management strategy is being developed for our existing and planned oil sands mining operations that will examine how we can reduce fresh water withdrawals to protect the Athabasca River and fish habitat.
Markets
A significant portion of the output of the Scotford Upgrader is sold to the Scotford Refinery. Both light and heavy crudes are also sold to Shell’s Sarnia Refinery in Ontario. The balance of the synthetic crude is sold to the general marketplace (predominantly PADD II in the US).
Related press releases
30 Jul 2007 - Shell files regulatory application for Scotford Upgrader 2
21 Dec 2006 - Regulators Approve Muskeg River Mine Expansion
23 Nov 2006 - Shell Canada announces $4 billion investment program for 2007
21 Nov 2006 - Shell Canada announces innovation in oil sands processing
28 Jul 2006 - Shell issues formal proposal to expand the Athabasca Oil Sands Project
Related links
Visit the Shell Canada website and learn more about oil sands.