Edam is first of three thermal projects

By Geoff Lee

March 8, 2016 9:50 AM

Husky's Edam East thermal heavy oil plant shown under construction last spring near the Village of Edam officially opened last week with the commenciing of steam.

Husky Energy continues to unroll low cost heavy oil thermal projects across the Lloydminster region with the opening of the Edam East facility.
Saskatchewan Premier Brad Wall joined Husky CEO Asim Ghosh Tuesday to help celebrate the start of steam operations at the Edam East thermal plant near the Village of Edam last.
The 10,000 barrels per day Edam East project is the first of three area thermal projects coming online this year.
“Edam East is the latest in our growing suite of heavy oil thermal projects, which are leading our transition into a low sustaining capital business,” said Ghosh.
“With the addition of Edam East, Vawn and Edam West, we expect to add about 24,500 barrels of new production by the end of 2016.”
Each plant will create up to 30 permanent jobs and up to 250 jobs in the construction phase.
“We’re working hard to create the Saskatchewan advantage and we’re grateful for Husky’s commitment to our province,” said Wall.
“Despite low oil prices, our province’s energy sector continues to attract billions of dollars in new investment.”
Since 2010, Husky has invested $8 billion in its Saskatchewan operations, including more than $3 billion building heavy oil thermal plants in the Lloydminster region.
By the end of 2016, the company will operate 10 thermal plants producing a total of 80,000 bbls per day.
“With fast build times and quick ramp ups, these projects typically surpass their nameplate capacity in their early years and the operating costs are amongst the lowest to be found anywhere in the industry,” said Ghosh.
The Lloyd thermal projects are a key component of Husky’s ongoing transition into a low sustaining capital business.
By the end of 2016 more than 40 per cent of overall production is expected to come from low sustaining capital projects compared to just eight per cent in 2010.
The 10,000 bbls/day Vawn development and the 4,500 bbls/day Edam West project are set to begin production in the third quarter of 2016.
Husky’s opening of Edam East is the latest in a number of announcements that indicate Saskatchewan’s energy sector remains strong despite weak oil prices.
R.I.I. North America Inc. announced the commissioning of a new $50 million enhanced oil recovery (EOR) project located southeast of Lloydminster near Neilburg last month.
The company is utilizing downhole steam generation for EOR through its proprietary Solvent Thermal Resource Innovations Process (STRIP).
The conventional method for heating oil in reservoirs injects steam generated in an above-ground boiler with up to a 50 per cent loss of its heat energy in transit.
Downhole steam generation will allow heavy oil companies to economically recover oil with less carbon intensity than conventional methods.
The STRIP pilot project is the first production-scale test of technology intended to raise average recovery rates from five to 45 per cent in certain reservoirs.

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