Long Lake oil sands partners start drilling

Gary Park

Nexen and OPTI Canada, joint-venture partners in the C$3.4 billion Long Lake oil sands project in Alberta, have entered the commercial drilling phase on their way to a production start-up by mid-2007.

Over the next 18 months, 65 horizontal wells will be drilled that, combined with three well pairs used in a pilot project, will deliver up to 72,000 barrels per day of bitumen to an on-site upgrading plant, the companies said Sept. 8.

Charlie Fischer, Nexen president and chief executive officer, said the testing of the steam-assisted gravity drainage technology has been operating for more than a year and is expected to grow to 2,500 bpd over the next few months from 1,800 bpd. Nexen also said it is on budget and on time, with 40 percent of total project engineering complete and orders placed for over 90 percent of the major steam-assisted gravity drainage equipment and 75 percent of the major upgrader equipment.

About 850 people are currently working full-time on Long Lake and on-site labor is expected to peak at about 2,000 in 2006.