NAOSC to produce bitumen from Canada's Leismer project

Aug. 22, 2007
Statoil subsidiary North American Oil Sands Corp. will produce 10,000 b/d of bitumen from its Leismer demonstration project in Canada by late 2009 or early 2010.

Uchenna Izundu
International Editor

LONDON, Aug. 22 -- Statoil ASA subsidiary North American Oil Sands Corp. (NAOSC) will produce 10,000 b/d of bitumen from its Leismer demonstration project in Canada by late 2009 or early 2010.

Bitumen production will come from 22 horizontal well pairs linked to four well pads and a processing facility will generate steam for underground injection to make the heavy oil less viscous.

The Alberta Energy and Utilities Board has already given the Leismer project the go ahead.

NAOSC operates 1,110 sq km of oil sands leases in the Athabasca region of Alberta, northeast of Edmonton, which is one of the largest heavy oil provinces in the world. Statoil acquired NAOSC earlier this year for $2 billion (OGJ Online, Apr. 27, 2007).

"The Leismer demonstration project is the first lease to be developed in the NAOSC portfolio. The NAOSC portfolio is expected to yield more than 200,000 b/d at the end of the next decade," Statoil said.

Contact Uchenna Izundu at [email protected].