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Shell celebrates 10 years of oil sands operations


News provided by

Shell Canada Limited

Jun 17, 2013, 10:16 ET

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CALGARY, June 17, 2013 /CNW/ - Shell announced today 10 years of oil sands production as operator of the Athabasca Oil Sands Project (AOSP). Starting with just a handful of employees, over the last 10 years Shell has built an oil sands mining and upgrading business capable of delivering over a quarter of a million barrels per day, providing 17% of Canada's total oil production, and employing over 3,000 staff and thousands of contractors.

Since production began in 2003, the Athabasca Oil Sands Project has produced over 500 million barrels of oil - enough to power more than 3.1 million homes for a year - and made significant achievements in improving environmental performance. In 2004 the AOSP became the first oil sands mine in the world to receive ISO 14001 certification for environmental management.  Last year Shell announced it would build the world's first carbon capture and storage project in the oil sands to store over one million tonnes of CO2 more than 2kms underground. In recent years green house gas and water intensities have improved at the mines.

"I'm very proud of what has been achieved over the last 10 years," said Lorraine Mitchelmore, president Shell Canada. "The oil sands are an important long-term business opportunity for Shell and an economic engine for Canada and beyond. We recognize that we must continue to improve the environmental performance of our oil sands operations if we are to compete in a world rightly asking more of the energy it uses. We believe economic and environmental performance go hand-in-hand and look to lead in both."

Shell is also active in a number of oil sands industry initiatives, including Canada's Oil Sands Innovation Alliance, which is working to accelerate improvement in environmental performance by permitting oil sands operators to share environmental technologies and collaborate in their implementation.

Critical to AOSP success is the support of local First Nations, Métis groups and the community of Fort McMurray. Shell is proud to have invested over $1.25 billion with local Aboriginal businesses and several million in funding across the region for a variety of educational organizations and programs including the Northern Lights Health Region, the Father Patrick Mecredi Science and Technology Centre and most recently, Shell Place at McDonald Island Park.

"Over the next decade, Shell sees opportunities to invest in our oil sands operations and increase production while lowering the environmental footprint," said Mitchelmore. "Our aim is to get more barrels for less carbon, less water and less impact to the land."

Notes to Editors

Shell Canada Energy is 60 per cent owner and operator of the Athabasca Oil Sands Project along with Chevron Canada Limited (20 per cent) and Marathon Oil Corporation (20 per cent). The AOSP includes the Muskeg River Mine and Jackpine Mine, located near Fort McMurray, Alberta and the Scotford Upgrader, located near Edmonton, Alberta.

Production - practical conversions

The energy content of the oil equivalent production (500 million barrels):

  • If poured into one gallon cans and laid end-to-end, would stretch nearly four million miles (6,437,000 km) - eight trips to the moon and back.
  • Is enough jet fuel to fill up more than 30,000 Boeing 747 jets.
  • Loaded into railroad tank cars, would make a train nearly 8,000 miles (7,954) (12,800 km) long.  Long enough to stretch from Calgary, Alberta to Tierra del Fuego at the southern tip of South America.

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 90 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 Project on behalf of the joint venture partners.

CAUTIONARY NOTE
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 over which Royal Dutch Shell plc  either directly or indirectly has control. Companies over which Shell has joint control are generally referred to "joint ventures" and companies over which Shell has significant influence but neither control nor joint control are referred to as "associates". In this press release, joint ventures and associates may also be 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 23% 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 expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''goals'', ''intend'', ''may'', ''objectives'', ''outlook'', ''plan'', ''probably'', ''project'', ''risks'', "schedule", ''seek'', ''should'', ''target'', ''will'' and similar terms and phrases. There are a number of factors that could affect the 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 [report], including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves 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 negotiation and completion of such transactions; (i) the risk of doing 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 risk factors that may affect future results are contained in Royal Dutch Shell's 20-F for the year ended December 31, 2012 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward looking statements contained in this press release and should be considered by the reader.  Each forward-looking statement speaks only as of the date of this press release, 17 June 2013. Neither Royal Dutch Shell plc 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.

We may have used certain terms, such as resources, in this press release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our 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. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

SOURCE: Shell Canada Limited

For further information:

Shell Canada Media Relations: +1 877 850 5023 or [email protected]

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Shell Canada Limited

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