Imperial investment in Aspen project to proceed

Imperial announced today that it has made a final investment decision to
develop its Aspen project, located about 45 kilometres northeast of Fort
McMurray, Alberta. The project, which is expected to produce about
75,000 barrels of bitumen per day, will include the first major
commercial application of next-generation oil sands recovery technology
designed to lower greenhouse gas emissions intensity and water use,
while improving development economics.

Through the application of advanced solvent-assisted, steam-assisted
gravity drainage technology at Aspen, Imperial is building on its
recently announced commitment to reduce the greenhouse gas emission
intensity of its operated oil sands facilities. The new technology
is estimated to reduce greenhouse gas emissions intensity and water use
intensity by up to 25 percent, compared with traditional steam-assisted
technology. Imperial anticipates that Aspen’s emissions intensity will
be one of the lowest among in situ oil sands operations across the
industry.

“We do not take investment decisions lightly, particularly in these
challenging times,” said Rich Kruger, Imperial chairman, president and
chief executive officer. “This is the right technology at the right time
to make a competitive investment. We have made the decision to proceed
now because we believe this advanced technology will further the
evolution of Imperial’s oil sands business.”

Imperial consulted with seven local Indigenous communities during the
regulatory application process to reach collaborative and unique
relationship agreements that provide mutual benefits and support long
term sustainable development of these communities. The agreements
establish a framework to ensure information-sharing and community
engagement with regard to environmental stewardship. They also provide
economic benefits, workforce opportunities, strategic business
development and potential business contracts that support project
construction and operation.

With a cost estimate of CA$2.6 billion, the Aspen project is anticipated
to create about 700 jobs during peak construction and more than 200 jobs
during operations. Based on preliminary estimates and current tax and
royalty rates, more than CA$4 billion in direct federal and provincial
tax revenues are expected to be generated over the 30-year life of the
project, as well as deliver more than CA$10 billion in royalty revenues
to the Alberta government.

Construction will begin in the fourth quarter of 2018 with first
production expected in 2022. There is potential for further development
of up to another 75,000 barrels per day of bitumen production with
timing dependent on a number of factors, including foundational project
performance and overall business and market conditions.

Cautionary Statement: Statements of future events or conditions
in this release, including projections, targets, and estimates are
forward-looking statements. Forward-looking statements can be identified
by words such as "intend", "expect", “estimate”, “believe”,
“anticipate”, "will" and similar references to future periods.
Disclosure related to expected production volumes, construction and
first production timing, estimated cost and job creation during
development and operations, application of oil sands recovery
technology, reduction in greenhouse gas emissions, intensity and water
use, improved development economics, community economic and workforce
benefits, and tax revenues and royalties generated from the project
constitute forward-looking statements. Actual future financial and
operating results, including expectations and assumptions concerning
project plans, dates, costs and capacities; production rates; production
life and resource recoveries; solvent injection and recovery levels;
capital and environmental expenditures; cost savings; demand growth and
energy source mix; commodity prices and interest and foreign exchange
rates; and applicable laws, government policies and environmental
regulation could differ materially depending on a number of factors.
These factors include changes in the supply of and demand for crude oil;
transportation for accessing markets; political or regulatory events,
including changes in law or government policy, applicable royalty rates
and tax laws; environmental risks inherent in oil and gas exploration
and production activities; environmental regulation, including climate
change and greenhouse gas restrictions; currency exchange rates;
availability and allocation of capital; availability and performance of
third party service providers; unanticipated operational disruptions;
management effectiveness; project management and schedules; response to
unexpected technological developments; operational hazards and risks;
and other factors described in Item 1A of Imperial’s most recent Form
10-K. Forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties, some that
are similar to other oil and gas companies and some that are unique to
Imperial Oil Limited. Imperial Oil Limited’s actual results may differ
materially from those expressed or implied by its forward-looking
statements and readers are cautioned not to place undue reliance on
them. Imperial Oil Limited undertakes no obligation to update any
forward-looking statements contained herein, except as required by
applicable law.

After more than a century, Imperial continues to be an industry
leader in applying technology and innovation to responsibly develop
Canada’s energy resources. As Canada’s largest petroleum refiner, a
major producer of crude oil, a key petrochemical producer and a leading
fuels marketer from coast to coast, our company remains committed to
high standards across all areas of our business.

View source version on businesswire.com: https://www.businesswire.com/news/home/20181106006051/en/

Source: Business Wire
(November 6, 2018 - 7:19 PM EST)

News by QuoteMedia

www.quotemedia.com