Kearl's price tag hits $11bn

Rising costs at Imperial's Kearl project hint at further oil-sands cost inflation

CANADA'S Imperial Oil says the first phase of its massive Kearl oil-sands mine will cost about 36% more to build than previously estimated. But it insisted the “vast majority” of the increase results from reworking original project plans and has little to do with traditional budget pressure from labour and materials. However, the revised price tag occurs amid industry concerns that a resurgence of activity in northern Alberta over the past 18 months is pointing to another round of 40-50% budget hikes that were common in 2006-08. Completing Kearl’s initial bitumen production of 110,000 barrels a day (b/d) by late 2012 is now expected to cost C$10.9 billion ($11.2 billion). No estimates have b