By OGJ editors
HOUSTON, Jan. 15 -- TotalFinaElf SA agreed to acquire 43.5% interest in the Surmont oil sands project near Fort McMurray, Alta. The proposed Surmont project involves four adjacent licenses covering 548 sq km.
The permit is part of a continuing heavy oil sands thermal extraction pilot project that has been in the planning since 1998. The project involves steam assisted gravity drainage. TotalFinaElf is partnered with operator ConocoPhillips 43.5%, and Devon Energy Corp, Okalahoma City, 13%.
ConocoPhillips acquired its stake in Surmont through then-Conoco's Inc. $3.1 billion (Can.) takeover of Gulf Canada Resources (OGJ Online, May 29, 2001).
This year, the consortium will continue to assess a first phase of development for the $1 billion (Can.) project, which is to be built in several stages and is expected to recover 5-10 billion bbl of bitumen.
"We will place at the disposal of the consortium in charge of developing Surmont our expertise as concerns heavy oils acquired notably in Venezuela where we operate the Sincor project within the Orinoco belt," said Christophe de Margerie, TotalFinaElf exploration and production president.
"We believe that TotalFinaElf is well positioned as concerns the development of nonconventional reserves whether it be in ultra-deep offshore Angola or in the North Sea with high temperatures and pressures," he said.
