Hangingstone SAGD project expansion brought on stream in Alberta

CNOOC Ltd., owner of Nexen Energy ULC, said the Hangingstone expansion commercial project in Canada has come on stream. Japan Canada Oil Sands Ltd. (JACOS) is the operator with 75% working interest.

Nexen has 25% working interest in Hangingstone, an oil sands steam-assisted gravity drainage (SAGD) project about 20 km south-west of Fort McMurray, Alta.

The Alberta project involves steam-generating equipment, well pads, 32 well pairs, water treatment, and bitumen flowlines. The project is expected to reach its peak production of 20,000 b/d of bitumen in 2018.

JACOS and its partners experimented with a cyclic steam stimulation pilot project on the Hangingstone pilot during the 1980s and 1990s. JAPEX participated in experiments at the underground test facility before committing to SAGD technology at Hangingstone.