StatoilHydro withdraws application for Canadian upgrader project
04-12-08 Norwegian oil and gas group StatoilHydro said it would withdraw its application for the construction of an "upgrader" for its Canadian oil sands project. A full-scale refinery or upgrader has been planned in Alberta after StatoilHydro in 2007 bought 257,000 acres of oil sands leases for $ 2 bn in a bid to diversify away from ageing North Sea oilfields.
"Prohibitive construction costs, the state of the global economy, uncertain oil price outlook and lack of legislative clarity are the main reasons for this decision," StatoilHydro said.
But StatoilHydro said it would monitor the cost and price situation and "reassess downstream options going forward." StatoilHydro said it did not impact the progress of its upstream oil sands activities and its long-term view of the Canadian oil sands development remained unchanged.
"This decision does not impact the upstream part of the company's oil sands venture," it said.
In May 2008, StatoilHydro decided to postpone the planned upgrader by two yearsto 2016.
The upgrader was intended to process the bitumen from oil sands into a synthetic crude oil.
Source: http://www.downstreamtoday.com / Xinhua Financial News
