The Muskeg River Mine has a design capacity of 155,000 barrels per day (bpd) of bitumen, which, after upgrading, is ready for refining.
The Resource
Muskeg River Mine sits on Shell’s Lease 13 which contains more than five billion barrels of mineable bitumen – an amount that’s about twice the conventional oil reserves remaining in Alberta. On Lease 13 the oil sands deposit is close to the surface and contains a high concentration of oil, making it ideally suited to mining. As currently designed the Muskeg River Mine will recover 1.6 billion barrels of bitumen. Shell also has approval for Muskeg River Mine Expansion and Jackpine Mine, which will eventually develop most of Lease 13.
As a whole, Canada's oil sands industry currently produces close to 60 per cent of the nation's petroleum needs and has the potential to account for 65 per cent of Western Canadian crude production by 2010. Alone, the Muskeg River Mine supplies almost 10 per cent of Canada’s oil needs.
The Muskeg River Mine is part of the Athabasca Oil Sands Project, a joint venture among Shell Canada (60%), Chevron Canada Limited (20%) and Marathon Oil Sands L.P. (20%).
What's Next?
- Albian Sands Expansion 1, a 100,000 barrel-a-day expansion of bitumen mining and extraction facilities is currently underway. Albian Sands Expansion 1 includes development of Jackpine Mine as well as expansion of Muskeg River Mine froth treatment facilities.
- In 2007 Shell filed applications with the federal and provincial governments for Jackpine Mine Expansion, and Pierre River Mine.
Historical Facts
1956 - Lease 13 granted to Shell Canada Limited by the Province of Alberta
1998 - A pilot project is constructed by Shell on Lease 13
August 1999 - Shell Canada announced a joint venture with Western Oil Sands Inc. and Chevron Canada Limited to develop the proposed Athabasca Oil Sands Project
December 1999 - The Approval for Financial Expenditure (AFE) allowing construction to begin was signed by the joint venture owners. AOSP construction begins
August 14, 2002 - First oil sands ore is processed from the Muskeg River Mine
April 19, 2003 - The Athabasca Oil Sands Project achieves fully integrated production when the Scotford Upgrader successfully started processing bitumen from Albian Sands' Muskeg River Mine
June 2005 - The 100 millionth barrel of bitumen is produced from the Muskeg River Mine
December 2006 - Muskeg River Mine Expansion receives provincial and federal regulatory approvals
