Husky Energy approves heavy oil thermal projects

Husky Energy has sanctioned two new heavy oil thermal projects in Saskatchewan that will produce 20,000 barrels per day (bbls/day).

Engineering is underway with construction of the 10,000 bbls/day Edam East project and the 10,000 bbls/day Vawn project scheduled to begin this year with first oil expected in 2016. The projects build on the success the company has had in the Lloydminster region in using thermal technology to access longer life heavy oil deposits.

Husky’s growing focus on thermal projects is guided by a rich portfolio of opportunities and a proven template of smaller Steam-Assisted Gravity Drainage (SAGD) plants providing better access to heavy oil reservoirs. The two new plants will be nearly identical to the Pikes Peak South and Rush Lake projects. Low operating costs, which were under USD 10 per barrel at existing plants in 2013, efficient project execution, time to first oil and the long life nature of the projects have contributed to a solid return on investment for the company.

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