Husky Energy Inc. has started commercial steam operations at the 10,000-b/d Rush Lake heavy oil thermal project in Saskatchewan (OGJ Online, Dec. 12, 2014).
“Rush Lake is the latest in a series of long life, low sustaining capital thermal projects we are advancing in our heavy oil business,” said Asim Ghosh, chief executive officer. “Five years ago, we had two heavy oil thermal projects in production and by the end of 2016, we will have ten projects onstream.”
Current production from Husky’s thermal projects is about 44,000 b/d. Husky expects to add another 34,500 b/d over the next 18 months.
Rush Lake, which began steam operations about 8 weeks ahead of schedule, is expected to ramp up to full production “in a short time period,” the company said. The 10,000-b/d Edam East project is scheduled to come on stream in third-quarter 2016, followed by the 4,500-b/d Edam West and the 10,000-b/d Vawn projects, both in the fourth quarter.
Husky said the projects use proven thermal technologies and modular, repeatable construction templates to access heavy oil deposits in the Lloydminster region, offering good returns even in a low-price environment (OGJ Online, May 6, 2015).