Shell halts Carmon Creek in situ project in Alberta

Royal Dutch Shell PLC said it will not continue construction of the 80,000-b/d Carmon Creek thermal in situ project in Alberta.

Shell expects to take $2 billion in charges in the third quarter as a result of the decision. Estimated proved reserves of 418 million bbl of bitumen at yearend 2014 will be debooked.

“After careful review of the potential design options, updated costs, and the company’s capital priorities, Shell’s view is that the project does not rank in its portfolio at this time,” the company said.

The decision “reflects current uncertainties, including the lack of infrastructure to move Canadian crude oil to global commodity markets.”

Shell will retain the Carmon Creek leases and preserve some equipment while continuing to study options for the 100% Shell-owned project. The company sanctioned the project in 2013 (OGJ Online, Oct. 31, 2013).

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...