Husky Energy has commenced production at its Dee Valley thermal project in Saskatchewan, the second of six 10,000 bpd thermal bitumen projects to be brought onstream from 2018 to 2022.
CEO Rob Peabody said, “These projects have direct access to our refining hub in Lloydminster and can be transported via committed export pipeline capacity to our refineries and other U.S. markets.”
Dee Valley follows Husky’s Rush Lake 2 Lloyd thermal project, which began production in October 2018 and achieved its 10,000 bpd design capacity the following month. Current Rush Lake 2 production is approximately 11,000 bpd, with a steam-oil ratio of 2.1.
Dee Valley will ramp up through year end, increasing Husky’s thermal production in Saskatchewan to 90,000 bpd.
Husky’s heavy oil production is matched by its Downstream processing and pipeline takeaway capacity through 2021, with tight physical integration providing for increased margin capture.
Image credit: Husky Energy