CALGARY, Alberta, Feb 23 (Reuters) - Royal Dutch Shell Plc said it was shelving plans to build a new oil sandsmine in northern Alberta, the largest such project to bedeferred as producers struggle with low energy prices.
The company said on Monday that it was withdrawing itsregulatory application for the 200,000-barrel-per-day PierreRiver project. Instead, it will concentrate on boosting theprofitability of its existing 255,000-bpd Athabasca oil sandsproject.
"The Pierre River Mine remains a very long-term opportunityfor us, but it's not currently a priority," LorraineMitchelmore, president of Shell's Canadian unit, said in astatement. "Our current focus is on making our heavy oilbusiness as economically and environmentally competitive aspossible."
Mitchelmore said Shell would hold the leases on the mine andcould reapply in the future.
Shell has regulatory approval to expand its Jackpine oilsands mine in northern Alberta by 100,000 bpd. Spokesman CameronYost said he could not speculate on when a final investmentdecision on that project would take place.
The company said that because planning for the Pierre Rivermine was still in early stages, few jobs will be cut because ofthe deferral.
Shell has a 60 percent stake in the Athabasca Oil SandsProject, while Chevron Corp and Marathon Oil Corp each hold a 20 percent interest.
Total SA and Statoil ASA have alsorecently postponed oil sands projects [ID:nL2N0RQ2CE] (Reporting by Scott Haggett and Nia Williams in Calgary;Editing by Lisa Von Ahn)
