November 7, 2006

Shell Canada to proceed with Athabasca Oil Sands expansion

Calgary, Alberta – Shell Canada Limited has announced its decision to proceed with an expansion of the Athabasca Oil Sands Project (AOSP), a 100,000 barrels-per-day expansion of oil sands mining and upgrading facilities, subject to final regulatory approvals.

“The heated market has upped the stakes on oil sands investments,” says Clive Mather, President and CEO of Shell Canada. “However, our analysis is that increasing world demand for energy will encourage the development of unconventional resources now and into the future. We take the long-term view of commodity prices, and intend to invest wisely through the cycle to reach our minable bitumen production goal of 550,000 barrels per day.”

The cost estimates for AOSP Expansion 1 indicate a capital intensity that ranges between $100,000 and $128,000 per flowing barrel. The project also calls for more than 6,000 trades people at peak of construction in 2008, and more than 700 new permanent operating jobs.

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