Shell abandons plans for Pierre River oil mine in Canada

Royal Dutch Shell has abandoned plans to develop the proposed Pierre River oil mine in Alberta, Canada.

The company said it is withdrawing its regulatory application for the mine north of Fort McMurray, Alberta, to focus attention on its existing oil sands operations.

In 2007, Shell submitted a joint application for the facility and the Jackpine Mine Expansion, a 100,000 bpd expansion to the Jackpine mine, on behalf of the Athabasca oil sands project (AOSP).

Shell Canada Energy operates the AOSP with a 60% stake. Chevron Canada and Marathon Oil Sands each own 20% interest.

Shell has existing regulatory approval and scope to double its oil sands output from its current level of 255,000 bpd.

Shell Canada president and executive vice president of heavy oil Lorraine Mitchelmore said: "The Pierre River Mine (PRM) remains a very long term opportunity for us but it’s not currently a priority.

"Our current focus is on making our heavy oil business as economically and environmentally competitive as possible. We will continue to hold the leases and can reapply in the future when the time is right."

Shell started operations in Canada in 1911 and the company employs about 8,000 people throughout the country.

The company manufactures, distributes and markets refined petroleum products. It also produces natural gas, natural gas liquids and bitumen.