Finning-Shell deal sign of growing oilsands investment
Caterpillar dealership sells 16 mining trucks and tractors to oil company
Last Updated: Thursday, November 26, 2009 | 3:47 PM MT
CBC News
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There was another sign Thursday of renewed investment in Alberta's oilsands.
Vancouver-based Finning International Inc. said it is selling seven Caterpillar mining trucks and nine tractors to Shell Canada Energy of Calgary.
A single Caterpillar 797 truck carries about 400 tons of sand.
(Finning International) The Caterpillar dealer didn't disclose the financial terms of the sale for competitive reasons.
However, in general, a contract of that size would be worth between $50 million and $60 million, a company spokesperson said. A single truck can cost about $6 million and carry about 400 tons of bitumen-soaked sand.
The Caterpillar 797 truck and D11 bulldozer will be delivered later this year to Shell's Albian operations at the Muskeg River Mine in Alberta's oilsands. A Shell spokesperson said the equipment would be used to expand not just replace its fleet.
The mine is part of a joint project involving Shell Canada, Chevron Canada and Marathon Oil Corporation.
Finning is the world's largest Caterpillar equipment dealer, with operations in Western Canada, Chile, Argentina, Bolivia, Uruguay, and the United Kingdom.
Investment in Alberta's oilsands has received several boosts recently. Calgary-based Suncor Energy said on Nov. 13 it was budgeting $5.5 billion for capital spending in 2010, including an expansion of its Firebag oilsands project north of Fort McMurray, Alta. PetroChina in September bought positions in two projects run by Athabasca Oil Sands Corporation.
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