Rich Kruger, president and CEO of Imperial Oil, addresses the company’s annual meeting in Calgary, Friday, April 29, 2016. The outgoing CEO of Imperial Oil Ltd. says the $2.6-billion Aspen oilsands project in northern Alberta it announced a year ago — only to cancel it a few months later — will remain on the sidelines until the province completely ends its oil curtailment plan. THE CANADIAN PRESS/Jeff McIntosh

Imperial CEO says no to Aspen oilsands project until Alberta oil quotas gone

Imperial confirmed a plan to boost production from its Kearl oilsands mine

The outgoing CEO of Imperial Oil Ltd. says the $2.6-billion Aspen oilsands project in northern Alberta it announced a year ago — only to cancel it a few months later — will remain on the sidelines until the province completely ends its oil curtailment program.

Rich Kruger, who is retiring at year-end, says the company which is about 70 per cent owned by American giant Exxon Mobil Corp. can’t go forward with a major expansion until the government halts its program to restrict oil production to support local prices.

Sanctioning of the Aspen project, which would have used steam and solvents to produce 75,000 barrels of bitumen per day from wells, surprised observers when it was announced at last year’s investor day but there was no such surprise at this year’s event in Toronto on Tuesday.

The Calgary-based company did, however, announce a $450-million project to boost output from its four-decades-old Cold Lake thermal project in northeastern Alberta by drilling into the previously undeveloped Grand Rapids underground oilsands formation.

Imperial says the project will save about $1 billion in capital spending by replacing its previously proposed Cold Lake expansion project, which would have added 55,000 bpd of capacity.

The new plan involves diverting steam from its nearby underperforming Nabiye project, started up in 2015, to bring on about 15,000 bpd in the first phase by 2021, with new steam generation added in future phases to take production to 40,000 to 50,000 bpd.

Imperial also confirmed a plan to boost production from its Kearl oilsands mine to 280,000 bpd from the current 200,000 bpd through the addition of supplemental ore crushers and self-driving haul trucks, along with other enhancements.

The Canadian Press

Just Posted

The final Castor Farmers Market of 2019 took place on Dec. 5th

The Castor Farmers Market will be taking a couple months off before returning in March

Alberta RCMP prepares for National Impaired Driving Enforcement Day and shares safety tips

National Impaired Driving Enforcement Day is a nationwide RCMP initiative taking place Dec.7th

Lacombe’s AFSC ready to help Alberta producers facing difficult times

2019 season not easy for Alberta producers due toweather and other challenges

Castor seniors learn how to protect themselves from scams and abuse

Around 20 seniors in Castor attended a recent workshop at the Castor Golden Circle

Permits expected in ‘the next month or two’ for the Paintearth Wind Project

The project, if approved, is projected to start construction in the second quarter of 2021

Fashion Fridays: Ethical and sustainable gifts for the season

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Man accused in toddler son’s death inept parent, not murderer: defence

Toddler’s body was found outside Good Shepherd Anglican Church in April 2017

Job numbers disappointing, but oil and gas growth expected in 2020: Kenney

Unemployment rate in Alberta rose to 7.2 per cent from 6.7 per cent last month

‘Things haven’t changed enough:’ Ecole Polytechnique anniversary prompts reflection

Fourteen women were fatally shot by a gunman at the Montreal school on Dec. 6, 1989

Feds approve Alberta’s carbon tax on big industrial emitters

Tax will be applied on 10 per cent of emissions produced by the province’s biggest polluters

Appeal denied: Alberta’s top court upholds conviction of triple-murderer

Douglas Garland was convicted of first-degree murder in the deaths of a couple and their grandson

Second warning on romaine lettuce from California region as another E. coli case reported

Two cases of E. coli have been reported in relation to the illness in the U.S.

Many of Canada’s working poor can’t afford lawyers, don’t qualify for legal aid

One lawyer says many people earn too much to qualify for legal aid, but not enough to really live on

Economy lost 71,200 jobs in November, unemployment rate climbs to 5.9%

Jobless rate is at its highest since August 2018, when it hit 6%

Most Read