Cenovus receives approval for Christina Lake expansion

By OGJ editors
HOUSTON, Apr. 27
-- Cenovus Energy Inc. received approval from the Alberta Energy Resources Conservation Board (ERCB) for three more 40,000 b/d phases for its Christina Lake steam-assisted gravity drainage (SAGD) operations in the Athabasca area of northeast Alberta.

Christina Lake is near Conklin, about 120 km south of Fort McMurray.

When completed, the three expansion phases (E, F, and G) will increase Christina Lake bitumen production capacity to 218,000 b/d.

Cenovus said that with this approval, it has 290,000 b/d of oil sands expansions under construction or approved by regulators. Currently the company's production capacity is 138,000 b/d of bitumen at Christina Lake and the nearby Foster Creek SAGD project.

At Christina Lake, the company has under way engineering and equipment fabrication for Phase E, with first production planned for 2014. It expects production from Phase F to start in 2016 and from Phase G in 2017.

The company estimates that the capital cost of the expansions will be $22,500 (Can.)/flowing bbl.

Christina Lake began as a pilot project in 2000 and is currently producing from Phases A and B about 18,000 b/d from 19 wells. Two 40,000 b/d phases (C and D) are under construction with Phase C almost complete and final testing and commissioning now taking place.

Cenovus estimates that construction of Phase D is more than half-way complete with most of the larger infrastructure items on site and final modules being completed at the company’s assembly yard in Nisku, Alta.

It expects steam injection in Phase D to start in first-quarter 2013 with production starting in the second quarter.

The company estimates that Christina Lake contains more than 700 million bbl of proved plus probable reserves and 800 million bbl of best estimate economic contingent resources.

Cenovus notes that the operation currently has an industry-leading steam-oil ratio of less than 2.0 that contributed to low average operating expenses of $16.47 (Can.)/bbl in 2010.

The company said it expects to make an application for another 40,000 b/d expansion (Phase H) in 2013. Phase H will increase Christina Lake production capacity to 258,000 b/d by 2019.

Cenovus also is moving forward with three approved expansion phases at Foster Creek, which will increase production capacity to 210,000 b/d by 2017 from the current 120,000 b/d.

The company also has a regulatory application for the 130,000 b/d Narrows Lake project in the Christina Lake region. In addition, Cenovus is doing preliminary assessment work on nine other emerging oil sands projects, including Grand Rapids in the Greater Pelican region and Telephone Lake in the Borealis region.

Cenovus has a 50% ownership of Christina Lake, Foster Creek, and Narrows Lake. ConocoPhillips holds the other 50%.

Related Articles

Woodside lets contract for Browse FLNG project

08/03/2015 Woodside Petroleum Ltd. has let a 12-month, $6-million contract to Wood Group Kenny (WGK) to carry out a front-end engineering and design job for t...

OGUK cites possible production increase for 2015

08/03/2015

Oil & Gas UK says production from the UK Continental Shelf could increase this year for the first time in 15 years.

Cidade de Itaguai FPSO starts production from Santos basin

08/03/2015 The Cidade de Itaguai floating production, storage, and offloading vessel started production on July 31 from the Iracema North area of Lula field o...

Starting with what's possible

08/03/2015 Before anyone snickers too loudly that the "comprehensive" energy bill the US Senate Energy and Natural Resources Committee planned to ma...

EPA initiatives give new meaning to political gridlock

08/03/2015

Bad energy policy has one positive attribute: a strong tendency for mistakes to devour themselves.

Financial sanctions impact Russian oil, equipment export ban's effects limited

08/03/2015 In reaction to Russia's involvement in the conflict in Ukraine, the European Union and the US have launched two-pronged sanctions against the Russi...

Delays, supply overhang menace North American LNG exports

08/03/2015 Permitting problems and delays affecting North American LNG export projects could combine with an overhang of LNG supply to make it difficult for N...

BHI: Overall US rig count drops slightly, but oil rigs continue rise

07/31/2015 A week after jumping by its highest margin since April 2014, the overall US drilling rig count lost 2 units during the week ended July 31 to settle...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected