PanCanadian, Value Creation to jointly develop oil sands technology

PanCanadian Petroleum Ltd., Calgary, and Value Creation Inc., Calgary and Hong Kong, have agreed to jointly develop upgrading technology for oil sands reserves. Value Creation is developing a partial upgrading process.


By the OGJ Online Staff

HOUSTON, Aug. 14 -- PanCanadian Petroleum Ltd., Calgary, and Value Creation Inc., Calgary and Hong Kong, have agreed to jointly develop upgrading technology for oil sands reserves.

Value Creation is developing a partial upgrading process that, PanCanadian said, has been tested with encouraging results at a small pilot plant. It would reduce costs, produce higher value grades of crude oil, and reduce or eliminate the need for diluent in transportation.

PanCanadian's Christina Lake development project could benefit from the technology, said the company.

Beginning in late 2002, PanCanadian will ship up to 10,000 b/d of blended bitumen from the first phase of its Christina Lake thermal project 170 km south of Fort McMurray, Alta., to Enbridge's Kirby Lake pipeline terminal and then through Enbridge's Athabasca Pipeline, connecting with the Enbridge mainline at Hardisty, Alta. (OGJ Online, June 22, 2001).

"If successful, this process provides an opportunity for us to greatly enhance value at our Christina Lake development, and could be used elsewhere to develop Alberta's vast oil sands resources," said David Tuer, PanCanadian president and CEO. "We hope to be in a position to consider a commercial-scale plant as early as 2002."

Value Creation is a private company. PanCanadian explores for and develops hydrocarbons in Canada, the US, the UK, Australia, Brazil, and Libya.

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