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Athabasca Oil Sands Project (AOSP)
The Athabasca Oil Sands Project (AOSP), a joint venture (Shell 60%) has a current capacity of 155,000 b/d of synthetic crude, with potential to achieve production licences of 770,000 b/d. 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) |
Current developments
The current production capacity of AOSP is 155,000 b/d of synthetic crude. Shell has regulatory approvals in place for Muskeg River Mine, Muskeg River Mine Expansion and Jackpine Mine, enabling production up to a total of 470,000 b/d of minable bitumen. In addition, Shell has existing licences for 290,000 b/d of synthetic crude production at the Scotford Upgrader.
In 2007 Shell applied for licences to increase production of bitumen – a very heavy oil - from our oil sands leases to 770,000 b/d, and for licences to increase bitumen upgrading to 690,000 b/d.
These applications cover:
- Jackpine Mine Expansion: a proposed expansion of Jackpine Mine with 100,000 b/d, including development activities on leases 88, 89, 15, 631, 632.
- Pierre River Mine: a proposed 200,000 b/d development on the west side of the Athabasca River, initially on leases 9 and 17 and progressing to leases 309, 310, 351, 352. A resource assessment of additional Shell leases north of Pierre River Mine is continuing
- Scotford Upgrader 2: a proposed 100% Shell-equity 400,000 b/d bitumen upgrading facility located adjacent to the existing AOSP Scotford Upgrader. .
Watch the AOSP video
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 environmental footprint for our operations, including reduced water usage and reduced greenhouse gas emissions from Canada’s oil sands developments.
Environment and society
In 2008, more than C$210 million of Shell’s total local spending went towards purchasing supplies and services from aboriginal groups such as the Athabasca Chipewyan First Nation.
Fuels produced from oil sands bitumen emit 15% more carbon dioxide (CO2) than conventional crude oil on a wells-to-wheels basis. We are working to reduce this gap by improving our energy efficiency and exploring the potential for large-scale capture and storage of CO2.
Shell Enhance is a new high temperature froth treatment process that can reduce energy usage by about 10%, avoiding 40,000 tonnes of greenhouse gas emissions a year. Developed by scientists at Shell and Natural Resources Canada, Shell Enhance will be built into the first expansion phase of the Athabasca Oil Sands Project (AOSP Expansion 1) now under construction.
Shell is also developing new technologies and processes to improve the management of fresh water at both our Muskeg River Mine and Scotford Upgrader. This will allow Shell to increase water treatment, recycling and storage at both facilities.
Markets
A significant portion of the output of the Scotford Upgrader is sold to the Scotford Refinery. The balance of the synthetic crude is sold to the general marketplace (predominantly PADD II in the USA).
