Nexen Energy has started work on a 26,000-b/d expansion of its Long Lake integrated oil sands project in the Athabasca region of Alberta, 25 miles southeast of Fort McMurray.
The CNOOC Ltd. subsidiary expects production from three well pads in the $400-million (Can.) Long Lake Southwest Expansion project to begin in late 2020.
Existing production capacity is 72,000 b/d via steam-assisted gravity drainage. Nexen upgrades the bitumen with a proprietary technology that gasifies separated asphaltenes to produce synthesis gas, from which hydrogen is separated for use in an on-site hydrocracker.
Nexen made the investment decision for the expansion in June.