Canadian firms' 3Q results highlight oil sands, heavy oil production rise

Nov. 4, 2014
Third-quarter financial and operating results included updates on several oil sands projects in Alberta.

Third-quarter financial and operating results included updates on several oil sands projects in Alberta.

Imperial Oil Ltd. said the Kearl project averaged 78,000 b/d in the third quarter. Excluding 2 weeks of planned maintenance in September, Kearl averaged 92,000 b/d.

MEG Energy Corp. said bitumen production averaged a record 76,471 b/d, an 11% increase over second quarter and more than 120% over 2013 third-quarter production of 34,246 b/d. The higher production stemmed from the ramp-up of MEG’s Christina Lake Phase 2B project and incremental production associated with its RISER initiative on Phases 1 and 2. MEG continues commercial deployment of its proprietary “enhanced and modified steam and gas push.”

Suncor Energy Inc. had record oil sands production of 411,700 b/d vs. 396,400 b/d in the same quarter last year. The increase was primarily due to the full ramp-up of the Firebag project following the commissioning of hot bitumen infrastructure assets in third-quarter 2013. The increase was partially offset by unplanned maintenance, including an outage at Upgrader 2 in late September. Production returned to normal rates in mid-October.

Suncor said the Fort Hills mining project remains focused on detailed engineering, procurement, and continued ramp-up of field construction. Detailed engineering was 55% complete by the end of the quarter. The project is expected to provide Suncor with 73,000 b/d of bitumen, with first oil expected in fourth-quarter 2017.

Suncor said it continues to work toward “a sanction decision” on the MacKay River expansion project, which is targeted to have an initial design capacity of 20,000 b/d.

Canadian Oil Sands Ltd. said it has “achieved substantial completion” in construction of the Mildred Lake Mine Train Replacement, which is now in the commissioning and start-up phase, and on schedule to be in service by yearend. In addition, the Centrifuge Tailings Management project reached an estimated 90% completion and is on schedule to be in service during first-half 2015.

Pengrowth Energy Corp. said commissioning and start-up activities have begun at its Lindbergh commercial facilities, with first steam anticipated in early December. First production from the initial 12,500-b/d project is expected in January. The Lindbergh pilot averaged 1,626 b/d of bitumen in the third quarter.