Petro-Canada outlines plans for Meadow Creek oil sands project

Petro-Canada, Calgary, has applied to the Alberta Energy and Utilities Board and Alberta Environment for an oil sands project at Meadow Creek, Alta. Petro-Canada said the steam-assisted gravity drainage project could cost $700-800 million (Can.). Production is anticipated in 2007.

By the OGJ Online Staff

HOUSTON, Dec. 4 -- Petro-Canada, Calgary, has applied to the Alberta Energy and Utilities Board and Alberta Environment for an oil sands development at Meadow Creek, Alta.

Petro-Canada said the steam-assisted gravity drainage project could cost $700-800 million (Can.). Production is anticipated in 2007.

The company said late last week that it planned a second in situ development project and noted that it would expand its 120,000 b/d Edmonton refinery (OGJ Online, Nov. 30, 2001).

On the production side, Petro-Canada applied to construct a facility at Meadow Creek that would produce up to 80,000 b/d of bitumen for 25 years.

On the refining side, Petro-Canada applied to convert the refinery to both produce low-sulfur gasoline and to replace its existing crude feedstock with bitumen. In the first phase, the program would convert the refinery's conventional light crude oil capacity to upgrade and refine 85,000 b/d of bitumen. This first phase would likely come on stream in 2007. A possible second phase of the program would add a further 85,000 b/d of bitumen capacity. Cost of the refinery program would be $4-5 billion spread over the next decade.

Meadow Creek is in northeast Alberta about 45 km south of Fort McMurray.

Petro-Canada owns a 75% interest in the development and Nexen Inc., Calgary, has the rest.

More in Drilling & Production