Mobil, Shell still 'go' on oil sands projects; parent company cutbacks won't affect them.(Mobil Oil Canada Ltd.; Shell Canada Ltd.)

Despite low worldwide oil prices and capital budget slashing by even the largest of the major oil giants, representatives of companies involved in two of Western Canada's biggest oil sands mining/upgrading proposals continue to say all things are still "go."

Mobil Canada Ltd. says its C$3 billion Kearl oil sands project north of Fort McMurray, AB, is still on line, despite capital spending cuts by its parent company in the U.S.

A Mobil Canada spokesperson said last week the company is still committed and moving forward on the 130,000-b/d project, with construction slated to begin in 2000 and synthetic crude production scheduled for start-up in 2003.

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