Baytex shutters Canadian oil sands

BAYTEX Energy, the company that paid almost $3 billion for Perth-based Aurora Oil & Gas and control of a large acreage position in the Eagle Ford Shale, Texas, last year has announced it is decommissioning its Gemini thermal oil sands pilot in northern Alberta, with work to be suspended until oil prices rise above $US80 per barrel.

Baytex says it needs oil prices to rise substantially before it resumes work on a planned 5000 barrel of oil per day steam-assisted gravity drainage project at Cold Lake.