May 10, 2004

Approvals completed for first phase of Shell's Jackpine project

CALGARY, ALTA-Shell Canada has now received provincial and federal government cabinet approvals for the first phase of its Jackpine Mine, in the Athabasca oil sands region of northern Alberta. This phase includes a mining and extraction facility on the eastern portion of Lease 13 with a planned capacity of approximately 200,000 barrels per day of bitumen. The Jackpine Mine was found to be in the public interest and unlikely to result in significant adverse environmental effects. Having obtained these approvals, Shell plans to continue work on the project development phase, including feasibility studies and continued community dialogue. A decision to invest in this development will depend on market conditions, project cost and sustainable development considerations. Shell's existing oil sands business, the Athabasca Oil Sands Project (AOSP), consists of the Muskeg River Mine, the Scotford upgrader and supporting facilities. The AOSP is a joint venture involving Shell Canada (60%), Chevron Canada (20%) and Western Oil Sands (20%). Chevron and Western Oil Sands also have the option to participate in Shell's oil sands growth project.
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