A $4 billion expansion of Syncrude Canada Ltd.'s oil sands plant in northern Alberta could be taken off the shelf in late 1991.
Syncrude Pres. Eric Newell says the expansion could be an alternative at that time to the proposed OSLO oil sands plant in the same area. The Canadian government withdrew financial support for OSLO earlier this year.
The Syncrude project calls for a 50% expansion of the operation to add 80,000 b/d to production. Design has been completed, and the expansion has received approval from Alberta's Energy Resources Conservation Board.
Newell called Syncrude a reliable way to replace declining conventional oil production. He said production costs for synthetic oil have been cut to $14-15 (Canadian)/bbl.
The Syncrude executive said the operation is close to being competitive with other sources of new oil-within $5/bbl if conventional finding costs are included-and has enough reserves to produce 160,000 b/d for 90 years.
OSLO PROJECT
Meanwhile, the lead partner in the OSLO group said it hopes to have a new financing agreement for the project worked out by yearend.
Esso Resources Canada Ltd. Vice Pres. Gordon Willmon said withdrawal of federal financing last February has not killed the project.
Willmon said the Alberta government is still anxious to see another grassroots oil sands project in the Fort McMurray area, where two oil sands plants are operating.
Esso and partners PetroCanada, Gulf Canada Resources Ltd., PanCanadian Petroleum Ltd., Canadian Occidental Petroleum Ltd., and Alberta Oilsands Equity representing the Alberta government are preparing a new financing plan for the Alberta government to examine.
Engineering for the project was to be completed by mid-1991 but late 1991 is more likely.
OSLO stands for Other Six Leases Operation, referring to leases held by six companies.
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