Oilsands project price tag rising
Posted May 28, 2011 8:23 am.
This article is more than 5 years old.
Imperial Oil says the cost of its Kearl oilsands project has jumped almost 40 percent since it issued its original estimate for what was then an $8 billion development.
The new price tag is now $10.9 billion.
According to the Calgary Herald, the information was disclosed earlier in the week during an investor open house.
Imperial blames the increase on design modifications and increases in labour and construction materials, such as steel.
The design changes include reducing the mine from three to two phases and eliminating a third production train.
The first phase, due to open in late 2012, should produce 110-thousand barrels of oil a day.
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