Production ramps up from Sunrise oil sands project

Husky Energy Inc., Calgary, reported that 25 well pairs are now on production at its Sunrise oil sands project in northeastern Alberta. Steaming is under way on 43 of 55 well pairs.

Strong reservoir and facility performance has contributed to increasing production volumes averaging 5,000-5,500 b/d at the end of June, which is ahead of schedule, the company says.

“We continue to follow a steady, deliberate timetable as we increase production at Sunrise, and this approach is delivering better than expected results,” said Asim Ghosh, Husky chief executive officer. “Sunrise is one of many low sustaining capital projects in our near-term portfolio that is designed to provide increasing value through and beyond the current low oil price environment.”

The project is part of the company’s plan to add 85,000 b/d of new production by yearend 2016, a portion of which is anticipated to offset natural declines across its overall portfolio.

Bitumen production from Sunrise launched in March (OGJ Online, Mar. 11, 2015). Production is expected to increase to full capacity of 60,000 b/d, split between Husky and 50-50 partner BP PLC, by yearend 2016.

Husky operates Sunrise while BP operates the jointly-owned BP-Husky Toledo refinery. Bitumen from Sunrise can be processed at the Toledo refinery.