31st Jul 2006 07:00
Shell issues formal proposal to expand the Athabasca Oil Sands Project28/07/2006Royal Dutch Shell plc today welcomed the below announcement by Shell Canada:Shell issues formal proposal to expand the Athabasca Oil Sands ProjectCalgary, Alberta - Shell Canada Limited announced that it has issued a formalproposal to proceed with Expansion 1 to the other Athabasca Oil Sands Project(AOSP) joint venture owners. They have 90 days to respond."We have received our Board's support to take the next step on this importantgrowth project," said Clive Mather, President and CEO, Shell Canada Limited."Issuing this proposal to the other owners is a key milestone in our strategyto grow mining production from the Athabasca region to 550,000 barrels per day(bpd)." (330,000 bpd Shell share)Shell Canada completed an extensive feasibility study followed by a rigorouscost estimate and assurance review process in support of this formal proposal.The heated markets for labour, materials and equipment have impacted all facetsof this 100,000 bpd expansion project. Although the capital intensity of theproject, estimated at between $275 and $350 per annual flowing barrel, hasincreased significantly from earlier estimates, Expansion 1 remains viableunder a wide range of pricing scenarios.Expansion 1 is a fully integrated expansion of the existing AOSP facilities,with both new oil sands mining operations on Lease 13 and associated additionalbitumen upgrading at Scotford. It also includes construction of commoninfrastructure that will be sized to support future expansions. The previouslyannounced solvent de-asphalting plant is not included in Expansion 1 becausethe technology is not yet ready for integration into the upgrading process. Itis expected that the Expansion 1 expenditures will be similar between the mineand the upgrader.Shell Canada intends to make a final investment decision for this project inthe fourth quarter of 2006 pending regulatory approvals. First bitumenproduction is expected in late 2009 followed by upgrader production in late2010.The Muskeg River Mine is located about 75 kilometres north of Fort McMurray,Alberta. The Scotford Upgrader is located near Fort Saskatchewan, northeast ofEdmonton. Together the facilities make up the existing Athabasca Oil SandsProject, a joint venture among Shell Canada Limited (60%), Chevron CanadaLimited (20%) and Western Oil Sands L.P. (20%).Investor Inquiries:UK: Gerard Paulides +44 20 7934 6287Continental Europe: Tjerk Huysinga +31 70 377 3996USA: Harold Hatchett: +1 212 218 3112Media Inquiries:International: +44 207 934 2713Shell Canada DisclaimerThis document contains "forward-looking statements" based upon management'sassessment of the Company's future plans and operations. These forward-lookingstatements include references to anticipated growth and long-termprofitability, future capital and other expenditures, the Company's plans forgrowth (including results of acquisitions), development, drilling, constructionand expansion, resources and reserves estimates, future production of resourcesand reserves, project schedules and execution, and market conditions.Readers are cautioned not to place undue reliance on forward-lookingstatements. Although the Company believes that the expectations represented bysuch forward-looking statements are reasonable based on the informationavailable to it on the date of this document, there can be no assurance thatsuch expectations will prove to be correct. Forward-looking statements involvenumerous known and unknown risks and uncertainties that could cause actualresults to differ materially from those anticipated by the Company. Theseassumptions, risks and uncertainties include, but are not limited to, demandfor oil, gas and related products, disruptions in supply, fluctuations in oiland gas prices, industry operating conditions, operating costs, projectstartup, schedules and execution, market competition, operational reliability,labour availability, shortages of materials and equipment, the uncertaintiesinvolving the geology of oil and gas deposits and reserves estimates, includingthe assumption that the quantities estimated can be found and profitablyproduced in the future, general economic conditions, changes in law orgovernment policy, and other factors, many of which are beyond the control ofthe Company.The forward-looking statements contained in this document are made as of thedate of this document and the Company does not undertake any obligation toupdate publicly or revise any of the forward-looking statements contained inthis document, whether as a result of new information, future events orotherwise, except as required by law. The forward-looking statements containedin this document are expressly qualified by this cautionary note.Royal Dutch Shell DisclaimerThis document contains forward-looking statements concerning the financialcondition, results of operations and businesses of Royal Dutch Shell plc. Allstatements other than statements of historical fact are, or may be deemed tobe, forward-looking statements. Forward-looking statements are statements offuture expectations that are based on management's current expectations andassumptions and involve known and unknown risks and uncertainties that couldcause actual results, performance or events to differ materially from thoseexpressed or implied in these statements. Forward-looking statements include,among other things, statements concerning the potential exposure of Royal DutchShell to market risks and statements expressing management's expectations,beliefs, estimates, forecasts, projections and assumptions. Theseforward-looking statements are identified by their use of terms and phrasessuch as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'',''intend'', ''may'', ''plan'', ''objectives'', ''outlook'', ''probably'',''project'', ''will'', ''seek'', ''target'', ''risks'', ''goals'', ''should''and similar terms and phrases. There are a number of factors that could affectthe future operations of Royal Dutch Shell and could cause those results todiffer materially from those expressed in the forward-looking statementsincluded in this Report, including (without limitation): (a) price fluctuationsin crude oil and natural gas; (b) changes in demand for the Group's products;(c) currency fluctuations; (d) drilling and production results; (e) reserveestimates; (f) loss of market and industry competition; (g) environmental andphysical risks; (h) risks associated with the identification of suitablepotential acquisition properties and targets, and successful negotiation andcompletion of such transactions; (i) the risk of doing business in developingcountries and countries subject to international sanctions; (j) legislative,fiscal and regulatory developments including potential litigation andregulatory effects arising from recategorisation of reserves; (k) economic andfinancial market conditions in various countries and regions; (l) politicalrisks, project delay or advancement, approvals and cost estimates; and (m)changes in trading conditions. All forward-looking statements contained in thisdocument are expressly qualified in their entirety by the cautionary statementscontained or referred to in this section. Readers should not place unduereliance on forward-looking statements. Each forward-looking statement speaksonly as of the date of this document. Neither Royal Dutch Shell nor any of itssubsidiaries undertake any obligation to publicly update or revise anyforward-looking statement as a result of new information, future events orother information. In light of these risks, results could differ materiallyfrom those stated, implied or inferred from the forward-looking statementscontained in this document.Please refer to the Royal Dutch Shell plc's Annual Report on Form 20-F for theyear ended December 31, 2005 for a description of certain important factors,risks and uncertainties that may affect the Company's businesses.ENDROYAL DUTCH SHELL PLCRelated Shares:
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