OILSANDS PROJECT UNCERTAIN

Prospects for a multibillion dollar oilsands project in northern Alberta are fading without government aid, a project spokesman says. Development Manager George Bezaire said a 135 member planning team for the OSLO project will be disbanded in about 3 months unless government help is forthcoming. This would shelve the project but not kill it if economics improve. The 80,000 b/d operation would require steady prices of $30 (U.S.)/bbl to be economic on its own. Cost estimates have increased

Jan. 28, 1991

Prospects for a multibillion dollar oilsands project in northern Alberta are fading without government aid, a project spokesman says.

Development Manager George Bezaire said a 135 member planning team for the OSLO project will be disbanded in about 3 months unless government help is forthcoming. This would shelve the project but not kill it if economics improve.

The 80,000 b/d operation would require steady prices of $30 (U.S.)/bbl to be economic on its own. Cost estimates have increased about $400 million to $4.5 billion (Canadian) in the past 2 years.

The $140 million planning phase in which project sponsors and the Alberta and federal governments share costs is almost complete. Bezaire said there is still hope for Alberta financing because the project would raise oil production and increase employment in the province.