Imperial Oil considering moving ahead with Aspen oil sands project earlier than planned
IMO•Imperial Oil is considering an earlier decision on its Aspen oil sands project, which could produce up to 150,000 barrels of bitumen per day. It reported adjusted third-quarter net income of C$5.11 per share, above the C$4.70 average analyst estimate.
1. Aspen decision timing
Imperial Oil is considering making a decision to proceed with its Aspen oil sands project sooner than previously planned. CEO John Whelan said the company had been targeting a final investment decision at the end of the decade, but is looking at whether to bring it forward. Aspen, a proposed in situ development in northern Alberta, could produce up to 150,000 barrels of bitumen per day.
2. Project considerations
Whelan said the timing will depend on technology readiness, project economics and the fiscal and regulatory environment. Imperial is testing solvent-assisted technology at the Aspen site to reduce steam use, greenhouse gas emissions and water consumption. Whelan said Aspen and the company's undeveloped Corner and Clarke Creek sites could together double its upstream production over time.
3. Quarterly results and outages
Imperial reported adjusted net income of C$5.11 per share for the quarter ended September 30, above analysts' average estimate of C$4.70. Third-quarter throughput fell to 381,000 barrels per day from 425,000 a year earlier following an 18-day third-party outage. Upstream production averaged 418,000 gross barrels of oil equivalent per day, down from 462,000 a year earlier, partly due to a separate temporary outage at the Enbridge-operated Woodland pipeline affecting Kearl.
