Shell Canada Ltd. aims to expand its Alberta oil sands operation despite surging capital costs, and has given its partners 90 days to respond to its proposal, it said on Friday.
The cost of boosting output from the Athabasca oil sands project by 100,000 barrels a day has been estimated at more than C$11 billion ($9.7 billion), up 50 percent from estimates last year.
"Although the capital intensity of the project, estimated at between C$275 and C$350 per annual flowing barrel, has increased significantly from earlier estimates, Expansion 1 remains viable under a wide range of pricing scenarios," it said in a statement.
($1=$1.13 Canadian)
The cost of boosting output from the Athabasca oil sands project by 100,000 barrels a day has been estimated at more than C$11 billion ($9.7 billion), up 50 percent from estimates last year.
"Although the capital intensity of the project, estimated at between C$275 and C$350 per annual flowing barrel, has increased significantly from earlier estimates, Expansion 1 remains viable under a wide range of pricing scenarios," it said in a statement.
($1=$1.13 Canadian)
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