Imperial Oil slows development of Aspen project, cites Alberta production cuts
|CTVnews 15 Mar 2019 at 04:54|
CALGARY -- Imperial Oil Ltd. says it has slowed the development of its Aspen in situ oilsands project because of uncertainty due to the Alberta government s oil production curtailment program and other challenges.
The Calgary-basedcompany says the slowdown will likely result in a delay of at least one year. First production from the project had been expected in 2022.
Imperial sanctioned the $2.6-billion project in November, before Alberta announced its production curtailment program which began Jan. 1.
The province mandated the production cuts in an effort to reduce the price discount on oil produced in Western Canada.
Imperial says it remains concerned about the unintended consequences of the provincial government s decision and believes the intervention sends a negative message to investors.