Imperial Oil Limited’s board of directors approved the first phase of the Kearl oil sands project, a surface mining operation northeast of Fort McMurray, Alberta. Imperial is an affiliate of Exxon Mobil Corporation, which owns 69.6% of the outstanding shares.
The Kearl project is envisioned to be developed in three phases and could ultimately produce more than 300,000 barrels a day of bitumen. The first phase of the project, expected to begin production in late 2012 with total production to average 110,000 barrels per day, is anticipated to cost about C$8 billion (US$7.1 billion) or approximately C$4.50 (US$4.00) per barrel to construct.
Imperial Oil is one of Canada’s largest corporations and a leading member of the country’s petroleum industry. It is one of the country’s largest producers of crude oil and natural gas, is the nation’s largest petroleum refiner, and has a leading market share in petroleum products sold through a coast-to-coast supply network that includes about 1,900 service stations.