Another oilsands project is on hold because of rising costs. Statoil announced it’s postponed the Corner project, a 44,000 barrel a day expansion site.
“Costs for labour and materials have continued to rise in recent years and are working against the economics of new projects,” says Statoil Canada country manager Ståle Tungesvik in a news release. “Market access issues also play a role – including limited pipeline access which weighs on prices for Alberta oil, squeezing margins and making it difficult for sustainable financial returns.”
The project will be on hold for at least three years and the company predicts it will cut 70 jobs. However, officials say most of the cuts will be felt at its Calgary headquarters.
The decision won’t have an affect on the Leismer project which is currently producing 20,000 barrels per day.
