Husky starts production at Dee Valley thermal project

Husky Energy Inc., Calgary, reported it has started production at its Dee Valley thermal project in Saskatchewan, the second of six 10,000-b/d thermal bitumen projects to be brought on stream during 2018-22.

“Dee Valley is the latest in our deep portfolio of repeatable, small-scale Lloyd developments that provide low-cost, reliable feedstock for our upgrader, asphalt refinery, and US refineries,” said Rob Peabody, Husky chief executive officer.

Peabody added that Husky’s Saskatchewan production is not subject to government-mandated production quotas.

Dee Valley will ramp up through yearend, increasing Husky’s thermal production in Saskatchewan to 90,000 b/d.

Dee Valley follows Husky’s Rush Lake 2 Lloyd thermal project, which began production in October 2018 and achieved its 10,000-b/d design capacity the following month.

Current Rush Lake 2 production is 11,000 b/d, with a steam-oil ratio of 2.1.

Four additional Saskatchewan thermal projects are being advanced through 2022, with a combined design capacity of 40,000 b/d.

• At Spruce Lake Central, drilling has been completed and construction of the central processing facility is progressing, with first production anticipated in second-half 2020.

• At Spruce Lake North, foundation work and module fabrication is under way, with start of production planned by yearend 2020.

• At Spruce Lake East, lease construction is advancing, and start of production is set for yearend 2021.

• At Edam Central, regulatory approval has been received and start of production is expected in 2022.