Imperial Oil Ltd. said its recent decision to slow development of its Aspen in situ oil sands project will delay the project’s expected production start by at least a year given the limited winter drilling and site preparation season (OGJ Online, Nov. 7, 2018). The decision to slow activity was made given market uncertainty stemming from Alberta government intervention and other industry competitiveness challenges.
Work done this year will enable the company to resume planned activity levels “when the time is right,” said Rich Kruger, chairman, president, and chief executive officer. A decision to return to planned project activity levels will depend on subsequent government actions related to curtailment and the company’s confidence in general market conditions,” he said.
Final investment decision to develop the $2.6-billion (Can.) project 45 km northeast of Fort McMurray, Alta.—expected to produce 75,000 b/d of bitumen with the potential for further development of as much as another 75,000 b/d of bitumen—was made in November 2018.
A contract for industrial water-tube boilers for the project was let to Babcock & Wilcox Enterprises Inc. in December (OGJ Online, Dec. 4, 2018).