Shell Canada Limited announced approval of the US $2.4 billion Athabasca Oil Sands Project in December, together with partners Western Oil Sands L.P. and Chevron Canada Resources Limited.

The project will produce 155,000 barrels of oil per day from oil sands in the Athabasca region in the Canadian province of Alberta. Construction has begun and first oil production is scheduled for late 2002.

The proven oil sands reserves for the project currently stand at 1 billion barrels. Shell Canada will invest US $1.4 billion through the joint venture and a further US $0.3 billion on modifications to its Scotford refinery to process feedstock. The other partners will invest US $1 billion between them. Third parties will supply additional facilities including a 500 kilometre pipeline and two gas-fired co-generation plants

Mark Moody-Stuart, Chairman of the Committee of Managing Directors of the Royal Dutch/Shell Group, said, "The project will replace declining domestic production and help reduce North American dependence on imported oil, generate more than US $3 billion in royalties and taxes, and create approximately 1,000 permanent operating jobs on site for local people."

The world's most advanced solar cell production facility has been opened by Shell Renewables in Gelsenkirchen, Germany. The first production line can manufacture 5 million solar cells a year equivalent to 10 megawatts. When working at full capacity with two production lines, it will produce approximately 13 million cells per annum with an output of 25 megawatts. This represents enough solar cells to power up to 7,000 European households and makes the plant the largest facility of its kind in Europe.

The facility also includes a Solar Education Centre, targeted at current and potential users of solar power, students and other visitors to the region.

Jeroen van der Veer, a Shell Group Managing Director, says, "This major new facility demonstrates that Shell is investing now in order to become a market leader when solar is a larger part of the global energy mix."

Thanks to an exciting new invention from Shell Global Solutions, liquids known as slugs which can collect in gas pipelines and slow down production, should no longer be a costly problem to the oil industry.

The slug-suppression device (SSD) was tested first in Shell Global Solutions' Amsterdam laboratory before being piloted by Shell Expro's North Sea Gannet-Alpha platform.

The trials showed that gas surges, which can follow a liquid slug, were suppressed by the new device, preventing large fluctuations in production. After shutdown, full production could be achieved using the SSD system within just an hour of flow line start-up.

A joint contract to develop a major natural gas field in the Shaanxi and Inner Mongolia Provinces of Central China, was signed recently by Shell Exploration China Ltd and China National Petroleum Company (CNPC).

Following evaluation and development stages, the project is expected to deliver up to 3 billion cubic metres of natural gas a year. The gas will come from the Changbei gas field, Ordos Basin, which extends over an area of 1,600 square kilometres.

Gas sales contracts will be negotiated by the two companies with potential customers, including power stations and industrial consumers. Field development and pipeline construction are scheduled to start in 2002.

Brian Anderson, Chairman of the Shell Companies in North East Asia, says, "Shell is honoured to sign the first major integrated gas development agreement between CNPC and a foreign partner. We have the opportunity to build a long-term relationship and to develop jointly clean energy solutions for the benefit of China's people and the environment."

School children are soon to be able to build their own solar-powered LEGO models with a new product developed by LEGO in conjunction with Shell Renewables.

The new LEGO Dacta eLAB product is based upon the company's well-known construction system, with the aim of providing classroom activities that will help children understand common forms of energy, including renewable energy such as sunlight, wind and water.

Shell Renewables has signed an agreement to supply the LEGO company with the mini solar panels, which are a vital part of the eLAB product. With an output of 0.75 watts, the panel represents the smallest ever produced by Renewables' Solar business but it uses the same multi- crystalline technology as the 75-watt panel normally sold.

The product will be introduced initially in the UK, the USA and Germany by LEGO Dacta, the company's educational division.

During a recent visit to Thailand, Group Managing Director Maarten van den Bergh met with Thai Prime Minister H.E. Mr Chaun Leekpai to discuss the outlook for the Thai economy and Shell's business prospects in Thailand.

He was there to visit Shell Thailand and to observe the competition in the Thai oil market, particularly in the retail sector.

The Thai economy has been shrinking for more than two years now and the energy demand has significantly decreased. At present, both the refining and retail businesses are facing problems of over-supply and extremely low margins.

Shell Thailand Chairman, Eli Santiago, says, "Since the name Shell has been in Thailand for 107 years, not just as a major oil brand but as a leader in the business community, we are striving to retain our position and to turn a difficult situation into opportunities.

"On the Retail side, we are focusing on cost efficiency and reshaping the business structure in order to be ever more competitive."