Rich Kruger, president and CEO of Imperial Oil, addresses the company’s annual meeting in Calgary, Friday, April 29, 2016. The outgoing CEO of Imperial Oil Ltd. says the $2.6-billion Aspen oilsands project in northern Alberta it announced a year ago — only to cancel it a few months later — will remain on the sidelines until the province completely ends its oil curtailment plan. THE CANADIAN PRESS/Jeff McIntosh

Imperial CEO says no to Aspen oilsands project until Alberta oil quotas gone

Imperial confirmed a plan to boost production from its Kearl oilsands mine

The outgoing CEO of Imperial Oil Ltd. says the $2.6-billion Aspen oilsands project in northern Alberta it announced a year ago — only to cancel it a few months later — will remain on the sidelines until the province completely ends its oil curtailment program.

Rich Kruger, who is retiring at year-end, says the company which is about 70 per cent owned by American giant Exxon Mobil Corp. can’t go forward with a major expansion until the government halts its program to restrict oil production to support local prices.

Sanctioning of the Aspen project, which would have used steam and solvents to produce 75,000 barrels of bitumen per day from wells, surprised observers when it was announced at last year’s investor day but there was no such surprise at this year’s event in Toronto on Tuesday.

The Calgary-based company did, however, announce a $450-million project to boost output from its four-decades-old Cold Lake thermal project in northeastern Alberta by drilling into the previously undeveloped Grand Rapids underground oilsands formation.

Imperial says the project will save about $1 billion in capital spending by replacing its previously proposed Cold Lake expansion project, which would have added 55,000 bpd of capacity.

The new plan involves diverting steam from its nearby underperforming Nabiye project, started up in 2015, to bring on about 15,000 bpd in the first phase by 2021, with new steam generation added in future phases to take production to 40,000 to 50,000 bpd.

Imperial also confirmed a plan to boost production from its Kearl oilsands mine to 280,000 bpd from the current 200,000 bpd through the addition of supplemental ore crushers and self-driving haul trucks, along with other enhancements.

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Wetaskiwin shelter will close early after assaults, other problems

Mayor Tyler Gandam said mental health, addictions overshadowing shelter’s purpose

New intersection coming for Hwy. #2A near grain terminal

G3 Canada will begin new intersection in 2020

Franchises a great option for business-minded

BMO expert gives brief look at 2020

County of Wetaskiwin transfer donated land to Scouts Canada body

A.L. Siler originally asked county to hold land in trust in 1972

Good Neighbour award presented at Lakedell Ag Society AGM

Meryln Fontaine Memorial presented to Tammy Southern

Blair says RCMP have met Wet’suwet’en conditions, calls for end to blockades

The Wet’suwet’en’s hereditary chiefs oppose the Coastal GasLink project

Study says flu vaccine protected most people during unusual influenza season

Test-negative method was pioneered by the BC Centre for Disease Control in 2004

Saskatchewan and B.C. reach championship round at Scotties

British Columbia’s Corryn Brown locked up the last berth in Pool B

Portrait of the Coastal GasLink, a pipeline to divide a nation

In mid-February, 46 per cent of the pipeline route had been cleared

Alberta ends master agreement with doctors, new rules to be in place April 1

The current master agreement with physicians ends March 31

Alberta rail conductor fired for social media posts awarded money, but not reinstatement

Arbitrator Richard Hornung says that he agreed with the Teamsters union

Kids exposed to household cleaners as newborns more likely to get asthma: study

Air fresheners, plug-in deodorizers, antimicrobial hand sanitizers and oven cleaners were the worst culprits

Burger King breaks the mould with new advertising campaign

The company is known for irreverent ad campaigns

PHOTOS: RCMP call on kids to name latest police puppy recruits

This year’s theme is the letter ‘N,’ and 13 German shephards must be named

Most Read