Alberta Oil Sands Technology & Research Authority (Aostra) has begun studying a commercial project for bitumen production using steam assisted gravity drainage techniques developed at its underground test facility (UTF) in northern Alberta.
Aostra's project focuses on the Athabasca oilsands deposit. It uses paired horizontal wells with steam injected in one well and bitumen produced from the other (OGJ, July 15, 1991, p. 31).
A proof of concept pilot phase at the UTF was completed last year that showed the technique is competitive with conventional bitumen recovery at a scale of 20,00-40,000 b/d. Aostra is producing 2,000 b/d in a demonstration phase.
COMMERCIAL PROJECT
Aostra plans a commercial project with capacity to produce 30,000 b/d of bitumen, Nickel's Daily Oil Bulletin reported.
The study centers on optimum plant size, environmental rules, economics and financing options, bitumen marketing options, and structure of an operating group.
Aostra expects supply costs to be $8-10 (Canadian)/bbl when the commercial plant is operational at 30,000 b/d. That compares with costs of about $12/bbl with the hot water separation process commonly used, Aostra said.
The study is to be complete by mid-1993 so participants that want to be included in the commercial phase can prepare 1994 budgets. Estimated capital and operating costs, being worked out by a task force, are to be confirmed by mid-1993.
Participants put up $2 million each this year for construction costs, but next year the total is expected to be $12 million, with the project expected to be earning revenues by then.
Industry partners are Amoco Canada Petroleum Co. Ltd., Conoco Canada Ltd., Chevron Canada Resources, Imperial Oil Resources Ltd., Petro-Canada, Japex Oil Sands Ltd., Shell Canada Ltd., Mobil Oil Canada Ltd., and China National Petroleum Corp. (CNPC). Aostra said four more industry members may get involved next year.
CNPC is the most recent addition to the group, joining earlier this year (OGJ, June 15, p. 29).
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