Imperial Oil Plans $8.9 Billion Expansion of Kearl Oil Sands Project
Imperial Oil is spending close to $9 billion to expand its 71%-owned Kearl Oil Sands Project.
The oil giant said said on Wednesday the expansion, costing $8.9 billion, will add 110,000 barrels of oil per day by late 2015 to the facility northeast of Fort McMurray, Alberta.
The project is 80% complete with startup expected at the end of next year.
The surface mining operation would begin production at 110,000 bopd and ramp up to a plant capacity of 145,000 bopd. However, Imperial Oil (TSE:IMO) says that “future debottlenecking” will increase output to 345,000 bopd in order to fully exploit the 4.6 billion barrel resource.
The Kearl expansion project is a key element of Imperial’s plan to double its production to approximately 600,000 oil equivalent barrels per day by 2020.
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