CALGARY — The first phase of Imperial Oil Ltd.’s Kearl oil sands mine will cost $2-billion more than previously expected as the company faced issues transporting Korean-made modules to the mine site in northern Alberta and contended with harsh weather during startup.
The first 110,000-barrel-per-day phase will now cost $12.9-billion, up from a previous estimate of $10.9-billion.
Taking into account a second $8.9-billion phase in the works, the whole development is expected to have a cost of $6.80 per barrel, up 10% from a prior estimate of $6.20.
Kurt Wulff (McDep Associates) submits: We recommend current purchase of the common stock of Imperial Oil (IMO) for unlevered appreciation potential of 51% to a McDep Ratio of 1.0 where price would equal Net Present Valu
CALGARY — A cap on greenhouse gas emissions in the oilsands is an unnecessary part of Alberta’s climate leadership plan, Imperial Oil Ltd.’s CEO said Friday.
The province could have used existing regulatory practices and procedures to drive environmental improvements, Rich Kruger told reporters after the annual meeting of shareholders.
The modest rebound in oil prices is fuelling hope that the worst of the downturn is over, but Canadian industry stalwarts such as Imperial Oil Ltd. and Suncor Energy Inc. aren’t taking any chances.
“We are still early in this cycle and the dust has not settled,” Rich Kruger, chairman and CEO of Canada’s oldest oil company, told shareholders at the company’s annual meeting in Calgary Thursday.
Calgary-based Imperial managed to do better than most in the first quarter, when oil prices tanked to the mid-US$40s a barrel.
CALGARY • Imperial Oil Ltd. will have to scale back plans to double production by the end of the decade if planned oil pipelines are delayed, its new CEO said Thursday.
But Richard Kruger, the Minnesotan who took the controls of Canada’s oldest oil company on March 1, said he’s confident that Keystone XL from Alberta to the U.S. Gulf and other proposed pipelines to Canada’s West and East will go ahead.
Canadian heavy oil strengthened the most in more than a month after Imperial Oil Ltd. shut operations at its Kearl oil sands project.
Operations were suspended after vibrations were detected in an ore crusher unit at the site, the company said in an e-mailed statement. The shutdown will last “several weeks” and customers will be supplied from inventories and through purchases of crude on the market, spokesman Pius Rolheiser said by phone. Imperial was producing 92,000 barrels a day at Kearl in the third quarter, the company said.
Imperial Oil Ltd said on Monday its expects its $12.9-billion Kearl oil sands project to begin operating within the next two weeks, more than three months past its original target, but the company cannot yet say how much oil the plant will initially produce.
Pius Rolheiser, a spokesman for Imperial, said operations at the first of Kearl’s three production trains, capable of handling up to 50,000 barrels of heavy oil sands crude per day, will begin by month’s end.
EDMONTON — Alberta’s energy industry has found that cleaning up oil sands tailings is much harder than it thought.
The province’s energy regulator says all oil sands companies affected by tailings reduction rules missed what were supposed to be legally binding targets — some by wide margins. All were given extra years to meet reductions that should have been done by now.
“It’s tougher than they thought,” Terry Abel of the Energy Resources Conservation Board said Tuesday. “It’s tougher than we thought, too.”
Imperial Oil Ltd expects to start producing marketable diluted bitumen from its $12.9-billion Kearl oil sands project in northern Alberta in “the next few days,” a spokesman said on Monday.
The company had previously targeted a first-quarter start-up for the 110,000 barrel a day first phase of Kearl.
“Obviously with an operation like this, start-up is a sequential process. We’re much more focused on making sure we do things at the right time,” Imperial’s Pius Rolheiser said.