CALGARY, May 4 /CNW/ - Shell today announced the successful start of
production from its Scotford Upgrader Expansion project in Canada. The
100,000 barrels-per-day expansion takes upgrading capacity at Scotford
to 255,000 barrels-per-day of heavy oil from the Athabasca oil sands.
"This start-up is an important milestone for our heavy oil business,"
said Marvin Odum, Shell Upstream Americas Director. "And it adds new
capacity from an important source of oil in a world requiring more
Today's announcement marks the first commercial production from the
upgrader expansion. The Scotford Upgrader processes oil sands bitumen -
heavy oil - from the Muskeg River Mine and Jackpine Mine, for use in
refined oil products.
With production capacity at the Athabasca Oil Sands Project now at
255,000 barrels-per-day, engineers will focus on improving operating
efficiencies and adding capacity through debottlenecking.
Design and engineering work also continues on the proposed Quest carbon
capture and storage project at the Scotford Upgrader. Quest could
capture and store underground some 1 million tonnes of CO2 per year. A final decision to begin construction could come in 2012,
once all regulatory approvals are in place.
Shell Canada Energy is 60% owner and operator of the Athabasca Oil Sands
Project (AOSP) along with Chevron Canada Limited (20%) and Marathon Oil
Corporation (20%). The AOSP includes the Muskeg River Mine, Jackpine
Mine and Scotford Upgrader.
Scotford Upgrader Expansion fast facts:
Adds100,000 barrels-per-day total capacity to the existing Scotford
Upgrader and brings AOSP total capacity to 255,000 barrels-per-day.
Engineered at offices around the world, including: Calgary, Edmonton,
Toronto, Houston, New Delhi and Shanghai.
At peak construction, more than 10,000 skilled trades on site - the
largest construction project in Canada.
Apprentices made up 30% of the workforce - which helped to train the
workforce of the future.
Helped to bring more women into the workforce by working with Women
Building Futures - a Canadian organization that empowers women to
succeed in non-traditional careers.
Trained some 45,000 people to work on our site over five years.
Had a 100% union site working with the Building Trades of Alberta.
As part of the Athabasca Oil Sands Project Expansion, we completed more
than 40 million hours without a lost time injury. In 2011, Shell's
Expansion project was awarded the Canadian Association of Petroleum
Producers Health and Safety Performance Award in recognition of this
18,000 piles driven 20 metres into the ground or the equivalent of 350
Canadian Football League fields.
~65,000 tones of structural concrete
17 new tanks capable of holding 270 million litres of liquid.
Five reactors in the Residue Hydro Conversion (RHC) unit: each 170 feet
tall (16 storeys), weighing 1,100 tonnes and nine inches thick.
~16,000 metric tonnes of structural steel.
Notes to Editors
Royal Dutch Shell plc
Royal Dutch Shell plc is incorporated in England and Wales, has its
headquarters in The Hague and is listed on the London, Amsterdam, and
New York stock exchanges. Shell companies have operations in more than
100 countries and territories with businesses including oil and gas
exploration and production; production and marketing of liquefied
natural gas and gas to liquids; manufacturing, marketing and shipping
of oil products and chemicals and renewable energy projects. For
further information, visit www.shell.com
Shell Canada Ltd
Shell has been operating in Canada since 1911 and employs approximately
8,000 people across the country. A leading manufacturer, distributor
and marketer of refined petroleum products, Shell produces natural gas,
natural gas liquids and bitumen, and is Canada's largest producer of
sulphur. Shell is one of Canada's oil sands developers and operates the
Athabasca Oil Sands Projects on behalf of the joint venture partners.
The companies in which Royal Dutch Shell plc directly and indirectly
owns investments are separate entities. In this press release "Shell",
"Shell group" and "Royal Dutch Shell" are sometimes used for
convenience where references are made to Royal Dutch Shell plc and its
subsidiaries in general. Likewise, the words "we", "us" and "our" are
also used to refer to subsidiaries in general or to those who work for
them. These expressions are also used where no useful purpose is served
by identifying the particular company or companies. ''Subsidiaries'',
"Shell subsidiaries" and "Shell companies" as used in this press
release refer to companies in which Royal Dutch Shell either directly
or indirectly has control, by having either a majority of the voting
rights or the right to exercise a controlling influence. The companies
in which Shell has significant influence but not control are referred
to as "associated companies" or "associates" and companies in which
Shell has joint control are referred to as "jointly controlled
entities". In this press release, associates and jointly controlled
entities are also referred to as "equity-accounted investments". The
term "Shell interest" is used for convenience to indicate the direct
and/or indirect (for example, through our 24% shareholding in Woodside
Petroleum Ltd.) ownership interest held by Shell in a venture,
partnership or company, after exclusion of all third-party interest.
This press release contains forward-looking statements concerning the
financial condition, results of operations and businesses of Royal
Dutch Shell. All statements other than statements of historical fact
are, or may be deemed to be, forward-looking statements.
Forward-looking statements are statements of future expectations that
are based on management's current expectations and assumptions and
involve known and unknown risks and uncertainties that could cause
actual results, performance or events to differ materially from those
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and assumptions. These forward-looking statements are identified by
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''could'', ''estimate'', ''expect'', ''intend'', ''may'', ''plan'',
''objectives'', ''outlook'', ''probably'', ''project'', ''will'',
''seek'', ''target'', ''risks'', ''goals'', ''should'' and similar
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future operations of Royal Dutch Shell and could cause those results to
differ materially from those expressed in the forward-looking
statements included in this press release, including (without
limitation): (a) price fluctuations in crude oil and natural gas; (b)
changes in demand for the Shell's products; (c) currency fluctuations;
(d) drilling and production results; (e) reserve estimates; (f) loss of
market share and industry competition; (g) environmental and physical
risks; (h) risks associated with the identification of suitable
potential acquisition properties and targets, and successful
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business in developing countries and countries subject to international
sanctions; (j) legislative, fiscal and regulatory developments
including regulatory measures addressing climate change; (k) economic
and financial market conditions in various countries and regions; (l)
political risks, including the risks of expropriation and renegotiation
of the terms of contracts with governmental entities, delays or
advancements in the approval of projects and delays in the
reimbursement for shared costs; and (m) changes in trading conditions.
All forward-looking statements contained in this press release are
expressly qualified in their entirety by the cautionary statements
contained or referred to in this section. Readers should not place
undue reliance on forward-looking statements. Additional factors that
may affect future results are contained in Royal Dutch Shell's 20-F for
the year ended December 31, 2009 (available at www.shell.com/investor and www.sec.gov - opens in new window). These factors also should be considered by the reader. Each
forward-looking statement speaks only as of the date of this press
release, 4 May 2011. Neither Royal Dutch Shell nor any of its
subsidiaries undertake any obligation to publicly update or revise any
forward-looking statement as a result of new information, future events
or other information. In light of these risks, results could differ
materially from those stated, implied or inferred from the
forward-looking statements contained in this press release.
The United States Securities and Exchange Commission (SEC) permits oil
and gas companies, in their filings with the SEC, to disclose only
proved reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally producible
under existing economic and operating conditions. We may have used
certain terms in this press release that SEC's guidelines strictly
prohibit us from including in filings with the SEC. U.S. Investors are
urged to consider closely the disclosure in our Form 20-F, File No
1-32575, available on the SEC website www.sec.gov - opens in new window. You can also obtain these forms from the SEC by calling
SOURCE Shell Canada Limited
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