StatoilHydro lets Leismer oil sands contract

Nov. 19, 2008
StatoilHydro Canada Ltd. has let a $41 million construction contract to Flint Energy Services Ltd. to develop its Leismer Oilsands demonstration project, 160 km south of Fort McMurray, Alta.

Uchenna Izundu
International Editor

LONDON, Nov. 19 -- StatoilHydro Canada Ltd. has let a $41 million construction contract to Flint Energy Services Ltd. to develop its Leismer Oilsands demonstration project, 160 km south of Fort McMurray, Alta.

The company will construct the central plant's mechanical components for the new steam-assisted gravity drainage facilities. The processing facility will have the capacity to produce from oil sands 10,000 b/d of bitumen from 22 horizontal well pairs—one for injection, the other for extraction—linked to four well pads.

Production, planned for late 2009-early 2010, is expected to increase to more than 200,000 b/d by 2020 from an initial 20,000 b/d in 2012 from all of StatoilHydro's oil sands leases.

This is the first lease to be developed.

Contact Uchenna Izundu at [email protected].