The Canadian Press: Shell Canada to spend $2.7B in 2006 to develop oil and natural gas resources: “Shell Canada Ltd. plans to boost capital spending plans by 60 per cent to $2.7 billion next year to develop its oil and natural gas operations, the big integrated oil company said Thursday”: Posted Friday 18 November 2005
CALGARY (CP) - Shell Canada Ltd. plans to boost capital spending plans by 60 per cent to $2.7 billion next year to develop its oil and natural gas operations, the big integrated oil company said Thursday.
Calgary-based Shell (TSX:SHC) announced it will spend $2.7 billion, 60 per cent higher than the expected spending this year, with a focus on expanding its northern Ontario oilsands business and maintaining natural gas production. The investment plan includes $2.4 billion in capital spending and $255 million of related exploration and pre-development expenses, the company said.
"With a strong balance sheet, excellent people and favourable economic prospects, Shell Canada is well positioned to grow," said president and chief executive Clive Mather.
"The 2006 plan launches us on a growth path to capture significant opportunities across the Company with the potential to increase our production by more than 50 per cent by the end of this decade.
"We expect to start construction on our first Athabasca oil sands expansion project next year and over the next five years anticipate that our total investment program could approach $17 billion as we pursue this project and other growth opportunities."
Shell is one of Canada's major integrated oil companies, with oilsands operations near Fort McMurray, Alta., natural gas production in western Canada and off the East Coast, refineries and a string of Shell-branded gasoline stations across the country.
The company is part of the Royal Dutch Shell Group, the British-Dutch multinational that is one of the world's biggest oil companies.
In trading on the Toronto Stock Exchange on Thursday, Shell Canada shares rose 25 cents to $34.85.
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