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Shell Canada withdraws application for Pierre River Mine

Shell has announced today that it is withdrawing its regulatory application for the proposed Pierre River Mine North of Fort McMurray.

“The Pierre River Mine (PRM) remains a very long term opportunity for us but it’s not currently a priority,” said Lorraine Mitchelmore, Shell Canada President and Executive Vice President of Heavy Oil in a company statement.

Shell has existing regulatory approval and scope to potentially more than double its oilsands production from its current level of 255,000 barrels per day (bbl/d)

“Our current focus is on making our heavy oil business as economically and environmentally competitive as possible. We will continue to hold the leases and can reapply in the future when the time is right,” said Mitchelmore.

The company says that due to the preliminary nature of the project, employment impacts will be very limited.

PRM was expected to produce up to 200,000 bbl/d, the application for PRM was submitted at the same time as the Jackmine Expansion in 2007 on behalf of the Athabasca Oil Sands Project (AOSP).

The project is a joint venture between Shell Canada Energy (60%), Chevron Canada Corporation (20%), and Marathon Oil Sands LP (20%).

Shell separated the PRM and Jackmine applications two years after they were filed.