UPDATE 1-Shell says oil sands upgrader back to normal

Mon Jan 14, 2008 3:44pm EST
 
[-] Text [+]

(Adds details)

CALGARY, Alberta, Jan 14 (Reuters) - Royal Dutch Shell Plc's (RDSa.L) oil sands upgrading plant near Edmonton, Alberta, is back at normal operating rates following repairs to one of two production trains damaged in a Nov. 19 fire, a company spokesman said on Monday.

The Scotford upgrader, which processes bitumen from Shell's Muskeg River oil sands mine into refinery-ready light oil, has a capacity of 155,000 barrels a day.

The company completed repairs to the hydroconversion unit at the end of December and had expected output to ramp up this month.

"We wanted to make sure before we brought these units on line that, obviously, the repairs had been made, and that we had done a full inspection of the units that were associated and could bring them back online safely," Shell spokesman Randy Provencal said.

"We've done that and it was a smooth startup."

Shell's 98,000 barrel a day Scotford refinery, which is part of the same complex, is running at full volume, he said.

Shell owns 60 percent of the mine and upgrader and its partners are Chevron Corp (CVX.N) and Marathon Oil Corp (MRO.N), with 20 percent each. Shell is the sole owner of the refinery. (Reporting by Jeffrey Jones; editing by Rob Wilson)

 

Featured Broker sponsored link