Statoil starts production from Leismer oil sands project

By OGJ editors
HOUSTON, Jan. 27
-- First bitumen production has started from Statoil Canada Ltd.'s Leismer steam-assisted gravity drainage (SAGD) demonstration project in the Athabasca oil sands region of northeast Alberta.

Statoil initiated steam injection in September 2010.

Alberta Environment has approved a 10,000 b/d production for the first phase of Leismer and Statoil expects to ramp up production to 18,800 b/d within 24 months, pending final Alberta Environment approval.

The company also has under study future phases of the Kai Kos Dehseh SAGD project. Statoil acquired Kai Kos Dehseh leases from North American Oil Sands Corp. in 2007. Kai Kos Dehseh includes the Leismer, Corner, Thornbury, and Hangingstone areas.

The leases are about about 120 km south of Fort McMurray.

The company’s next phase, Corner, is a proposed 40,000 b/d facility, which along with further expansion of Leismer to 40,000 b/d, recently received approval from the Alberta Energy Resources Conservation Board (ERCB).

Statoil is the operator of Kai Kos Dehseh with a 60% interest. Its partner, PTT Exploration & Production of Thailand, holds the remaining 40%.

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