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Imperial delays C$2.6B Aspen project, cites Alberta production curtailment

Calgary, Alberta-based Imperial Oil Ltd. said March 15 it will delay the development of its Aspen oil sands project due to the Alberta government's curtailment and other competitiveness challenges.

Imperial CEO, President and Chairman Rich Kruger said the company is unable to invest "billions of dollars" due to the "uncertainty" in the current environment.

However, Kruger said Imperial still plans to conduct work this year that will enable the company to resume planned activity levels at the right time.

The company will resume project activity levels upon changes in the government's curtailment and other market conditions, according to Kruger.

The project, which was sanctioned in November 2018, was initially estimated to cost C$2.6 billion and would produce 75,000 barrels of oil per day.