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Researched by Industrial Info Resources (Sugar Land, Texas)--Canadian Natural Resources Limited (NYSE:CNQ) (Calgary, Alberta) is acquiring 70% of the Athabasca Oil Sands Project, north of Fort McMurray, Alberta, as well as additional working interests in other oil sands leases, from Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands). Also, Shell and Canadian Natural will acquire and equally own Marathon Oil Canada Corporation, which holds a 20% interest in Athabasca. Currently, the deals are targeted to close in mid-2017. Industrial Info is tracking more than $18 billion in projects involving Canadian Natural, and more than $44 billion in Canadian projects involving Shell.
Shell is selling all of its in-situ and undeveloped oil sands interests in Canada, slashing its share of the Athabasca Oil Sands Project from 60% to 10%. Canadian Natural's acquisition includes an interest in the mining and extraction operations; 70% of the Scotford Upgrader, which services the Scotford Refinery; a 100% working interest in the Peace River/Carmon Creek thermal in-situ operations; and other oil sands leases.
Shell will remain operator of the Scotford Upgrader and Quest carbon capture and storage project in Fort Saskatchewan, Alberta, which will be part of Canadian Natural's acquisition. Shell expects to net $7.25 billion from these transactions, with post-tax impairments estimated at between $1.3 billion and $1.5 billion.
Industrial Info is tracking more than $29 million in major turnarounds planned for early next year at the Scotland Upgrader. For more information, see Industrial Info's project reports on scheduled turnarounds at the sulfur-recovery unit, residue hydroconversion units, residue hydrocracker unit, atmospheric and vacuum unit, and diluent recovery unit.
Industrial Info also is tracking a proposed, $15 million crude unit expansion at the Scotford Refinery, which still is fully owned by Shell. The expansion would increase the unit's capacity from 100,000 to 120,000 barrels per day (BBL/d), to process additional synthetic crude oil. For more information, see Industrial Info's project report.
"We are very proud of the oil sands and in-situ operations that our people have grown in Alberta over the past several decades," said Michael Crothers, the president and country chair for subsidiary Shell Canada, in a press release. "These assets are an excellent fit for Canadian Natural, a highly experienced oil sands developer." Shell believes the deals will reduce its costs and optimize its value chain.
For its newly acquired properties in the Athabasca Oil Sands, Canadian Natural noted that the current estimated production capacity, before royalties, is about 196,000 BBL/d. February's production is expected to come in at about 188,000 BBL/d.
Shell and Canadian Natural are buying Marathon Oil Canada Corporation from an affiliate of Marathon Oil Corporation for $1.25 billion each. Marathon Oil Canada Corporation holds a 20% interest in the Athabasca Oil Sands Project, which includes two mines: Muskeg River and Jackpine, which together form Shell Albian Sands. Due to difficult commodity market conditions, both mines currently have expansion projects that are either long-delayed or on hold: the $4 billion Jackpine Oil Sands Mine expansion, and the $1 billion Phase I and $1 billion Phase II expansions at the Muskeg River Oil Sands Mine. As designed, the expansions would increase capacities at the two mines to 355,000 BBL/d and 500,000 BBL/d, respectively. For more information, see Industrial Info's project reports on Jackpine, and Phase I and Phase II at Muskeg River.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Shell is selling all of its in-situ and undeveloped oil sands interests in Canada, slashing its share of the Athabasca Oil Sands Project from 60% to 10%. Canadian Natural's acquisition includes an interest in the mining and extraction operations; 70% of the Scotford Upgrader, which services the Scotford Refinery; a 100% working interest in the Peace River/Carmon Creek thermal in-situ operations; and other oil sands leases.
Shell will remain operator of the Scotford Upgrader and Quest carbon capture and storage project in Fort Saskatchewan, Alberta, which will be part of Canadian Natural's acquisition. Shell expects to net $7.25 billion from these transactions, with post-tax impairments estimated at between $1.3 billion and $1.5 billion.
Industrial Info is tracking more than $29 million in major turnarounds planned for early next year at the Scotland Upgrader. For more information, see Industrial Info's project reports on scheduled turnarounds at the sulfur-recovery unit, residue hydroconversion units, residue hydrocracker unit, atmospheric and vacuum unit, and diluent recovery unit.
Industrial Info also is tracking a proposed, $15 million crude unit expansion at the Scotford Refinery, which still is fully owned by Shell. The expansion would increase the unit's capacity from 100,000 to 120,000 barrels per day (BBL/d), to process additional synthetic crude oil. For more information, see Industrial Info's project report.
"We are very proud of the oil sands and in-situ operations that our people have grown in Alberta over the past several decades," said Michael Crothers, the president and country chair for subsidiary Shell Canada, in a press release. "These assets are an excellent fit for Canadian Natural, a highly experienced oil sands developer." Shell believes the deals will reduce its costs and optimize its value chain.
For its newly acquired properties in the Athabasca Oil Sands, Canadian Natural noted that the current estimated production capacity, before royalties, is about 196,000 BBL/d. February's production is expected to come in at about 188,000 BBL/d.
Shell and Canadian Natural are buying Marathon Oil Canada Corporation from an affiliate of Marathon Oil Corporation for $1.25 billion each. Marathon Oil Canada Corporation holds a 20% interest in the Athabasca Oil Sands Project, which includes two mines: Muskeg River and Jackpine, which together form Shell Albian Sands. Due to difficult commodity market conditions, both mines currently have expansion projects that are either long-delayed or on hold: the $4 billion Jackpine Oil Sands Mine expansion, and the $1 billion Phase I and $1 billion Phase II expansions at the Muskeg River Oil Sands Mine. As designed, the expansions would increase capacities at the two mines to 355,000 BBL/d and 500,000 BBL/d, respectively. For more information, see Industrial Info's project reports on Jackpine, and Phase I and Phase II at Muskeg River.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
