StatoilHydro Withdraws Application for Oil Sands Upgrader Project

Alberta Oil Sands
(Click to Enlarge)

StatoilHydro has withdrawn its regulatory application for the development and construction of a bitumen upgrader in Alberta's Industrial Heartland in Canada.

"This decision does not impact the progress of StatoilHydro’s upstream oil sands activities. StatoilHydro's long term view of the Canadian oil sands development remains unchanged. The construction of our Leismer SAGD project is progressing according to plan with startup late 2010," confirmed StatoilHydro Canada President, Geir Jossang.

In May 2008, StatoilHydro decided to postpone the planned upgrader by two years to 2016. Since then, various alternatives for the project have been evaluated.

In line with several other players in the Canadian oil sands industry, StatoilHydro has decided to discontinue the upgrader project at this time, but will continue to monitor the cost and price environment and reassess downstream options going forward. The upgrader was intended to process the bitumen from oil sands into a synthetic crude oil.

This decision does not impact the upstream part of the company's oil sands venture. The production from the project will be marketed as unprocessed bitumen.

The planning of the next phases following the Leismer 20,000 barrels per day demonstration plant continues. As the sole owner of the project, StatoilHydro retains both flexibility and optionality with regards to timing and investments in future phases.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Environmental Chemist
Expertise: Chemical Engineering|Environmental Engineer
Location: Kennesaw, GA
Petroleum / Facilities Engineering Specialist - Offshore
Expertise: Petroleum Engineering
Location: Houston, TX
Petroleum Engineer
Expertise: Petroleum Engineering
Location: Houston, TX
search for more jobs

Brent Crude Oil : $51.38/BBL 2.44%
Light Crude Oil : $50.43/BBL 2.26%
Natural Gas : $3.14/MMBtu 0.94%
Updated in last 24 hours