Imperial anticipates volume growth, higher refinery throughput in 2025

Imperial Oil Ltd., Calgary, set its 2025 capital and exploration expenditures budget at $1.9-2.1 billion (Can.), noting key investments are expected to support volume growth, while a ‘lighter’ turnaround schedule is expected to support higher refinery throughput year-over-year. 

Upstream

In the upstream segment, an increase in bitumen recovery and mine progression work at the Kearl oil sands plant northeast of Fort McMurray is expected, along with completion of the Leming redevelopment project and high-value drilling opportunities at Cold Lake oil sands operation in Northeastern Alberta, the company said in a release Dec. 12. 

Production is expected to grow to 433,000-456,000 gross boe/d. Higher volume reflects continued growth at Kearl, which produced 295,000 total gross boe/d in this year’s third quarter; the first full-year contribution from Grand Rapids at Cold Lake, which produced 147,000 gross boe/d in this year’s third quarter; as well as other optimization initiatives, the company said. 

The Leming redevelopment project, using steam-assisted gravity drainage (SAGD) recovery technology, is expected to start late-2025 and primarily contribute to 2026 and beyond. Peak production anticipated to be around 9,000 b/d. In this year’s third-quarter, tie-ins for modules were completed and installation progressed. 

Downstream

Downstream investments include completion of the Strathcona renewable diesel project at the operator’s Strathcona refinery near Edmonton, Alta., with start-up expected around mid-year, the company said (OGJ Online, Jan. 26, 2023). Throughput is expected to total 405,000-415,000 b/d with capacity utilization of 94-96%. 

Imperial Oil is planning turnarounds at each of its refineries—Nanticoke in second-half 2025, Sarnia in third-quarter/fourth-quarter 2025, Strathcona in second-quarter 2025—with lower expected impacts to throughput and costs compared to 2024.