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Husky launches oil sands project
Gary Park Petroleum News Calgary correspondent
Husky Energy is taking the plunge into the oil sands world by giving the green light to its C$500 million Tucker project that should be commissioned in the third quarter of 2006. The Canadian integrated company said July 19 that approval from the Alberta Energy and Utilities Board will allow construction to start next year on its 1.27 billion-barrel lease about 16 miles northwest of Cold Lake, Alberta.
Husky expects production to start within three to six months of commissioning, to peak at 30,000-35,000 barrels per day and to recover 350 million barrels over a 35-year project life, employing steam-assisted gravity drainage technology to recover the raw bitumen.
“Tucker is an important undertaking by Husky as it is our milestone oil sands project,” said John Lau, president and chief executive officer.
He said Tucker is one of several oil sands leases held by Husky covering 425,000 acres and holding an estimated 3 billion barrels of possible reserves.
Lau said the oil sands will “play a significant role in the company’s medium- and long-term growth strategies.” Husky already producing heavy oil Husky has already gained some experience in the region by operating three heavy-oil recovery projects and producing more than 100,000 bpd in Western Canada.
It can process Tucker bitumen into synthetic crude at its Lloydminster upgrader, which is scheduled to achieve capacity of 82,000 bpd this year, or deliver a bitumen blend directly to market through terminals at Hardisty, Alberta.
Next on the horizon for Husky is a possible 200,000 bpd oil sands project, which could come on stream in 2008 at 50,000 bpd and quadruple in size over the 2010-2014 period, exploiting a 2.25 billion barrel lease over 40 years.
Husky released the Sunrise project plan earlier this year for public comment after three years of drilling delineation wells and testing its steam-assisted gravity drainage technology.
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