By OGJ editors
HOUSTON, Feb. 6 -- Shell Canada Ltd. inched a little closer to its goal of producing 500,000 b/d from its Athabasca oil sands leases in northern Alberta when the joint review panel established by the Alberta Energy and Utilities Board and the Government of Canada gave it environmental approval for Phase 1 of its Jackpine mine project.
The cabinets of both provincial and federal governments must now approve it, after which Shell Canada will begin feasibility studies and continue community dialogue.
The development phase, scheduled for completion by 2010, involves expanding total Muskeg River mine bitumen production to 225,000 b/d from155,000 b/d.
Phase 1 includes a new stand-alone, 200,000 b/d mining and extraction facility on the eastern portion of Lease 13. Phase 2 includes additional resources on Leases 88 and 89, to be mined as an extension of the first phase of the Jackpine mine, enabling additional production of 100,000 b/d. Lease 88 and 89 development requires additional regulatory approval.
