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Pierre River Mine Project

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MINING AND PROCESSING ERCB SIRS 3 – 38<br />

Jackpine <strong>Mine</strong><br />

Production Production Thousand bbl/cd<br />

350<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

2009<br />

Section 4.1<br />

and <strong>Project</strong> Update are contemplated. The timing of these equipment additions<br />

was originally described in the December 2009 Jackpine <strong>Mine</strong> Expansion,<br />

Supplemental Information, Volume 1, SIR 134 and is reproduced here.<br />

The overall development strategy and plan for Shell’s Jackpine <strong>Mine</strong> and <strong>Pierre</strong><br />

<strong>River</strong> <strong>Mine</strong> was outlined in the December 2009 Jackpine <strong>Mine</strong> Expansion,<br />

Supplemental Information, Volume 1, Section 1.2, Overview. The following<br />

represents Shell’s current estimated schedule, based on regulatory approval being<br />

granted before 2011.<br />

First oil production from the Jackpine <strong>Mine</strong> – Phase 1 is expected in 2010 and<br />

will increase over time up to 15,900 m 3 /cd (100,000 bbl/cd). Additional bitumen<br />

production capacity from staged development could start as early as 2014,<br />

increasing as additional mining and extraction equipment is added. First oil<br />

production from the third extraction train is not expected until 2017, with full<br />

production expected by 2020 (see Figure ERCB 12-1).<br />

2010<br />

2011<br />

Muskeg <strong>River</strong> <strong>Mine</strong><br />

<strong>Pierre</strong> <strong>River</strong> <strong>Mine</strong><br />

Jackpine <strong>Mine</strong> – Phase 1<br />

Train 1<br />

Train 2<br />

Design and<br />

Construction<br />

2012<br />

2013<br />

2014<br />

Train 2<br />

Train 3<br />

Design and<br />

Construction<br />

4-10 Shell Canada Limited April 2010<br />

CR029<br />

2015<br />

Year<br />

2016<br />

2017<br />

Jackpine <strong>Mine</strong> Expansion<br />

Train 3<br />

Figure ERCB 12-1: Jackpine <strong>Mine</strong> Development<br />

An investment decision has yet to be taken to expand the mining and extraction<br />

facilities of the Muskeg <strong>River</strong> <strong>Mine</strong> beyond the current capacity of 23,850 m 3 /cd<br />

(150,000 bbl/cd). Further expansion of the Muskeg <strong>River</strong> <strong>Mine</strong> will be dependent<br />

on the investment factors outlined in the Jackpine <strong>Mine</strong> Expansion <strong>Project</strong><br />

Update, Section 1.2, <strong>Project</strong> Development Update, and the future operating<br />

performance of the Jackpine <strong>Mine</strong> and Muskeg <strong>River</strong> <strong>Mine</strong>.<br />

The <strong>Pierre</strong> <strong>River</strong> <strong>Mine</strong> is expected to produce first oil in 2018, with full<br />

production from the first train achieved around 2021 (see Figure ERCB 12-2).<br />

The timing of design and construction activities has yet to be determined.<br />

2018<br />

2019<br />

2020<br />

2021

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