The Jackpine Mine will combine with existing production from the Muskeg River Mine to feed the Scotford Upgrader, which processes the oil sands bitumen – heavy oil – for refined oil products.

Construction for an expansion of the Scotford Upgrader is underway and is expected to come on-stream in 2011.

The Jackpine Mine adds capacity of 100,000 barrels of oil equivalent (boe) per day to the existing Muskeg River Mine capacity of 155,000boe per day.

Shell Upstream Americas director and president of Shell Oil Marvin Odum said that Canada’s oil sands are an important source of energy in a world with increasing energy needs, and Shell is committed to developing this resource responsibly and to pursuing opportunities to reduce the impacts of its oil sands operations.

Shell Canada Energy is the operator and 60% owner of the Athabasca oil sands project along with Chevron Canada and Marathon Oil each holding a 20% interest in the project.

The Athabasca oil sands project includes the Muskeg River Mine, Jackpine Mine and Scotford Upgrader.