Shell Canada Announces $4.4 Billion Investment Program

Shell Canada announced a planned capital and exploration expenditure program totaling $4.4 billion over the next five years. Of this total, $1.2 billion is related to the Company's share of the Athabasca Oil Sands Project (AOSP). The program also includes $1.3 billion to progress opportunities in the East Coast and Mackenzie Delta frontier areas over the next five years, subject to obtaining necessary approvals for related developments and investments.

Shell's capital and exploration expenditure plan for 2002 totals $1.8 billion. This includes $890 million for Shell's share of the AOSP and $100 million for related modifications to Shell's Scotford Refinery. The 2002 program for Resources includes $170 million for exploration and $325 million for development projects. The 2002 program for Oil Products includes $70 million for marketing programs and $185 million for manufacturing and distribution projects. Strict capital discipline will be applied in executing this plan and there is built-in flexibility to modify certain elements of the plan, should this be needed in the light of economic developments.

Tim Faithfull, Shell Canada's President and CEO, said, "Our investment plans indicate our commitment to growth. The Athabasca Oil Sands Project is the largest project ever undertaken by Shell Canada. High levels of activity in the oil and gas industry and related impacts on productivity and costs have added to the challenges of effectively executing this project. I'm confident that we have the people, the organization and the financial capability not only to deliver this project successfully, but also to move forward on growth opportunities in other parts of our business over the next year."