Husky Energy Dives into Massive Alberta Oil Sands Project

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Husky Oil Operations Limited (Husky), a subsidiary of Husky Energy Incorporated (TSE: HSE) (Calgary Alberta), is planning to construct a new oil sands project approximately 60 kilometers northeast of Fort McMurray Alberta. Husky's proposed Sunrise Thermal Project is a bitumen production field with proven reserves of 2.25 billion barrels of crude and could reach a total daily production volume of just over 200,000 barrels per day.

Husky proposes to develop the resource in four phases, each with a daily production of 50,000 barrels. Husky holds a 100 percent interest in the ninety section oil sands lease located five kilometers east of Kearl Lake in Township 95, Range 7, W4M. The resource is at an average depth of 100 - 250 meters and will be recovered utilizing steam assisted gravity drainage (SAGD) in-situ process technology and then shipped as diluted bitumen to existing terminal facilities. Later phases of the project would study the feasibility of constructing an on-site crude upgrader and a 150 megawatt cogen.

Husky is presently in the permitting process and expects to select an engineering company for the front-end engineering and design contract in late 2004 or early 2005. The permitting process should take two years and construction could begin as early as 2007, with completion and first production for phase I in 2009. The cost of the four-phase development is nearly $2.8 billion not including the possibility of constructing a cogen and an upgrader.

View Project Report- 56000849