Shell Canada Closer to Regulatory Approval for Jackpine

Shell Canada has received the decision report and conditional approval for Phase 1 of its Jackpine Mine from the joint review panel established by the Alberta Energy and Utilities Board and the Government of Canada.

The Jackpine Mine, a second oil sands mine for Shell in the Athabasca oil sands region of northern Alberta, was found to be in the public interest and unlikely to result in significant adverse environmental effects. The application is subject to nineteen conditions and now has to be approved by the cabinets of both the provincial and federal governments.

Once approvals are received, Shell Canada will move ahead with the project development phase, which includes feasibility studies and continued community dialogue. "This is a big step forward towards our long term growth goal of producing 500,000 barrels per day from our Athabasca oil sands leases," said Neil Camarta, Senior Vice President, Oil Sands, Shell Canada Limited. "We appreciate the support shown by our stakeholders in helping us to create a sustainable project."

The planned development phasing of Shell's Athabsaca oil sands leases is as follows:

  • Expansion of the existing Muskeg River Mine - to increase total production from the current design level of 155,000 barrels per day of bitumen up to approximately 225,000 barrels per day. This development would likely be complete before 2010.
  • Jackpine Mine - Phase 1 - a new stand-alone mining and extraction facility located on the eastern portion of Lease 13 with a capacity of approximately 200,000 barrels per day of bitumen production. The development of this new mine is covered by the pending regulatory approval for the east-side of Lease 13.
  • Jackpine Mine - Phase 2 - additional resources on Leases 88 and 89 would be mined as an extension of the first phase of the Jackpine Mine, allowing for additional production of approximately 100,000 barrels per day. Development of Leases 88 and 89 requires additional regulatory approval.

  • Shell is also looking at the integration of each of these mining developments with upgrading facilities. The exact timing of any of these developments will depend on a number of factors, including the outcome of the regulatory processes, project economics and ability to meet Shell's sustainable development principles.