The oil major withdrew an application for its Pierre River Mine, may reapply ‘when the time is right’
Royal Dutch Shell (ticker: RDSA) withdrew its regulatory application today for the proposed Pierre River Mine north of Fort McMurray, Alberta. The company said it made this decision in order to focus its attention on its existing oil sands operations. The project has been in Shell’s project pipeline since 2007.
The Pierre River Mine is a long-term opportunity, according to the company, which it may come back to once prices improve. “Our current focus is on making our heavy oil business as economically and environmentally competitive as possible,” said Lorraine Mitchelmore, Shell Canada President and Executive Vice President of Heavy oil. “We will continue to hold the leases and can reapply in the future when the time is right.”
Shell originally put the project on hold February 2014, before the oil price collapse in June, reports BNN. The company planned to build Pierre River in 2007 as part of a joint application for a 100 MBOPD expansion to its Jackpine Mine project. The company may increase its oilsands production even without the Pierre River Mine, saying it has existing regulatory approval and scope to potentially more than double its oil sands productions from its current level of 255 MBOPD.
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