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.
Source: Alberta.ca Pierre Creek is located in the north-east portion of the Athabasca oilsands area.
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication.
