Imperial Oil pumps extra C$1 billion in Alberta heavy oil

Gary Park

Imperial Oil is pumping another C$1 billion into its heavy oil operations at Cold Lake, in northeastern Alberta, adding 375 million barrels to its existing reserves.

Canada’s largest integrated company, which is 69.6 percent owned by ExxonMobil, said it aims to add 180,000 barrels per day of production over the next decade from its Nabiye and Mahihkan fields.

Imperial’s existing Cold Lake operation is producing 119,000 barrels per day and is in the final stages of completing a C$2.35 billion project to boost output to 150,000 barrels per day later this year.

Unlike nearby oil sands operations, where the bitumen is mined near the surface, Cold Lake bitumen is forced to the surface using steam injection methods. Total recoverable reserves at Cold Lake stand at 850 million barrels.

“Cold Lake is out largest single source of crude oil and our key growth area for oil production,” said a spokesman for Imperial.

Wilf Gobert, an analyst with Calgary investment firm Peters & Co., said development costs for the latest expansion total about C$2.67 per barrel.

“That’s unbelievably cheap,” he said.