ConocoPhillips OKs Surmont oil sands project; plans 100,000 b/d of bitumen by 2012

By OGJ editors

HOUSTON, Nov. 13 -- ConocoPhillips approved the $1.1 billion Surmont oil sands project 60 km southeast of Fort McMurray, Alta., and plans to start construction in early 2004. Initial bitumen production will commence in 2006, increasing to more than 100,000 b/d by 2012, ConocoPhillips said.

The Surmont project will use the steam-assisted gravity drainage method of injecting steam into the oil sands to melt the heavy bitumen for easier recovery and processing.

ConocoPhillips subsidiary ConocoPhillips Canada, with a 43.5% stake in the project and lands, is Surmont operator; partners are Total SA 43.5% and Oklahoma City-based Devon Energy Corp. 13%.

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