Husky completes Tucker oil sands project

By OGJ editors
HOUSTON, Aug. 22 -- Husky Energy Inc., Calgary, reported that construction on the Tucker oil sands project, which began in late 2004, has been completed. On Aug. 20 Husky began steam injection into Tucker's reservoir, which lies 30 km northwest of Cold Lake, Alta.

Oil production is slated to start in November, with peak production of more than 30,000 b/d expected to be achieved within 2 years after start-up.

Husky said an estimated 350 million bbl of bitumen will be produced during the Tucker project's expected 35-year life.

"Tucker is in close proximity to Husky's Cold Lake pipeline system and heavy oil upgrader in Lloydminster, Sask., making it an attractive integrated project," said Husky Pres. and Chief Executive Officer John C.S. Lau.

Husky used a lump-sum turnkey contract for the project's central processing facility, which amounted to about 60% of the total project capital costs. This cost was less than the $500 million budgeted.

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