Shell halts oil sands mining to fix upgrader

CALGARY, Alberta, Nov 26 (Reuters) – Royal Dutch Shell said on Monday it has suspended bitumen production at its oil sands mine near Fort McMurray, Alberta, as it works to repair a fire-damaged upgrader that converts the tar-like bitumen into synthetic crude oil.

Shell will advance the timetable of maintenance work at the Muskeg River mine while repairs at the 155,000 barrel per day Scotford upgrader are completed following a Nov. 19 fire.


Storage facilities at the mine are full, and with the upgrader damaged, there is no place to send the bitumen for processing.

“Production has been curtailed,” said Randy Provencal, a spokesman for the company. “As a result, there was maintenance work that was originally scheduled for January 2008 that has been advanced.”

Shell’s extensive Canadian oil sands operations have been disrupted since last week’s fire at the upgrader site. The fire was ignited after a release of light hydrocarbons and deadly hydrogen sulfide gas at the complex, which is northeast of Edmonton, Alberta.

Reuters