Shell has cancelled its plans to develop thermal oil sands at Canada’s Carmon Creek citing low petroleum prices, the super-major announced on Tuesday.

Shell spikes Carmon Creek project

Canada

OTTAWA, October 28, 2015 – Shell has cancelled its plans to develop thermal oil sands at Canada’s Carmon Creek citing low petroleum prices, the super-major announced on Tuesday.

As a result of cancelling the project, Shell expects to lose $2 billion it had invested in charges related to impairment, provision of contracts, redundancy and restructuring.

In October 2013, Shell had planned to produce its from Carmon Creek assets, which are located in northern Alberta in the Peace River oil sands. These resources could have produced 80,000 barrels of oil per day.

According to the company’s statement, the project did not fit in with the super-major’s portfolio after careful evaluation of the design, costs and Shell’s capital.

“We are making changes to Shell’s portfolio mix by reviewing our longer-term upstream options worldwide and managing affordability and exposure in the current world of lower oil prices,” Ben van Beurden, CEO of Shell, said in a Tuesday statement.

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