Shell Canada lets Scotford upgrader expansion contract

Uchenna Izundu
International Editor

LONDON, May 18 -- Shell Canada Ltd. has let a construction and fabrication contract to KBR Inc. for the Scotford upgrader expansion east of Edmonton, Alta. The value of the contract, which will be completed in March 2010, was not disclosed.

KBR will fabricate 160 modules to boost by 100,000 b/d the capacity of the Athabasca Oil Sands Project (AOSP) Expansion 1. Shell plans to increase production from AOSP to 550,000 b/d.

The expansion plan includes adding a third bitumen upgrading train which, along with debottlenecking of the existing facilities, will increase upgrading capacity to 300,000 b/d.

AOSP is a joint venture of Shell Canada 60%, Chevron Canada Ltd. 20%, and Western Oil Sands LP 20%. The group plans to invest $10-12.8 billion in the project.

Contact Uchenna Izundu at uchennai@pennwell.com.

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