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Shell takes $2 billion write-down on Canada project

Staff writer ▼ | October 28, 2015
Royal Dutch Shell said it would abandon the construction of a major oil-sands project in Western Canada and take a $2 billion write-down.
Carmon Creek
No go   Royal Dutch Shell to abandon its project in Canada
Shell said it would discontinue its 80,000 barrel-a-day Carmon Creek oil-sands project, citing an uncertain business environment and highlighting concerns about sufficient pipeline capacity to ship oil-sands crude to markets.

Several proposed pipeline projects connecting northern Alberta's oil sands to refiners in the U.S. and elsewhere have been delayed by regulatory issues, including the Keystone XL pipeline to the U.S. Gulf Coast.

"We are making changes to Shell's portfolio mix by reviewing our longer-term upstream options world-wide, and managing affordability and exposure in the current world of lower oil prices. This is forcing tough choices at Shell," Ben van Beurden, Royal Dutch Shell's chief executive, said.

Shell, which produces 250,000 barrels of oil a day from its oil-sands mines, first announced plans to go ahead with Carmen Creek in 2013, and it was expected to start up in 2017.

Earlier this year, the company signaled problems with the cost and design of the facility when it pushed back the planned start date by two years to 2019.