Oilsands Review Project Status April 2014

Page 1

P R O J E C T S TAT U S

04 14 project status

Athabasca Region Industrial Heartland Region Cold Lake Region

Sourced from Alberta regulators and corporate disclosures. For changes and updates, please contact Deborah Jaremko at djaremko@junewarren-nickles.com. Disclaimer: Oilsands Review accepts no liability for errors or inaccuracies in the information provided in this report.

Peace River Region Northwestern Saskatchewan

navigator.oilsandsreview.com For more detailed project data, visit oilsandsreview.com. To explore oilsands projects using our interactive web tool, visit the Canadian Oilsands Navigator.

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

NORTH ATHABASCA REGION

SASKATCHEWAN REGION

SOUTH ATHABASCA REGION

INDUSTRIAL HEARTLAND REGION

COLD LAKE REGION

NEW EXPORT PIPELINES

PEACE RIVER REGION

CURRENT PROJECT

CAPACITY

NEW INFORMATION THIS MONTH

START-UP

Fort Hills

REGULATORY STATUS

Updated: Feb 2014

NORTH ATHABASCA REGION — MINING

Canadian Natural Resources Limited

Suncor says that project activities in 2014 are expected to focus on the completion of detailed engineering and procurement across all areas of the project, and construction of mine and extraction infrastructure including pilings and foundations.

Horizon

Updated: Dec 2013

Canadian Natural says that operating performance at Horizon has been strong since the company executed its first major turnaround in May 2013. Horizon SCO production in the third quarter was approximately 112,000 barrels per day. The overall phased expansion to 250,000 barrels per day is 30 per cent physically complete, with the first phase in that expansion, Reliability, 91 per cent physically complete and five per cent under budget. Phase 1 Reliability - Tranche 2 Phase 2A

135,000

2008

Operating

5,000

2014

Construction

10,000

2015

Construction

Phase 2B

45,000

2016

Construction

Phase 3

80,000

2017

Construction

Kearl

110,000

2013

Construction Approved Updated: May 2012

Phase 1

120,000

TBD

Application

Syncrude Canada Ltd. •

Mildred Lake/Aurora

Updated: Feb 2014

Base Mine Stage 1 & 2 Expansion

290,700

1978

Operating

Stage 3 Expansion

116,300

2006

Operating

TBD

Construction

Centrifuge Tailings Management

Operating

100,000

2016

Approved

Aurora SouthTrain 2

100,000

2018

Approved

TBD

2023

Announced

Mildred Lake Mine Extension (MLX)

110,000

2015

Construction

Phase 3

80,000

2020

Approved

Teck Resources Limited

Phase 4 Debottleneck

45,000

TBD

Approved

Updated: Dec 2013

TBD

Aurora SouthTrain 1

Phase 2

Jackpine

Frontier

Updated: Feb 2014

The Canadian Environmental Assessment Agency estimates the federal review schedule for the project application to be approximately two years, so 2015 is the earliest approval would be granted. Teck says that an exploration program is planned at Frontier in the winter of 2014 to provide additional data to support the regulatory review process and ongoing engineering work.

Phase 1A

100,000

2010

Operating

Phase 1B

100,000

TBD

Approved

Phase 1

74,600

2021

Application

Expansion

100,000

2017

Approved

Phase 2

84,000

2024

Application

Phase 3

79,300

2027

Application

Phase 4 Equinox

39,400

2030

Application

Muskeg River

Updated: Dec 2013

Minority partner Marathon Oil Corporation says the Athabasca Oil Sands Project has recently shown “outstanding” performance due to robust reliability and realizations, but is expecting significant planned downtime in the fourth quarter. Commercial

155,000

2002

Operating

Expansion & Debottlenecking

115,000

TBD

Approved

Pierre River

Updated: Feb 2014

Shell has informed regulators that it is indefinitely halting work on the Pierre River project. The company has asked that the regulatory approval process be suspended. Phase 1

100,000

2018

On Hold

Phase 2

100,000

TBD

On Hold

Suncor Energy Inc. •

TBD

Suncor considers Voyageur South to be a “longer-term” project and has not confirmed a start-up date.

Updated: Feb 2014

Shell Albian Sands

2017

20,000

Voyageur South

Imperial Oil says that Kearl gross bitumen production continues to ramp up. Production was impacted during the fourth quarter by harsh winter weather and equipment reliability issues that are being addressed. Production rates of 100,000 barrels per day have been reached, and ongoing activities to stabilize performance at these higher levels are progressing. The Kearl expansion project was 72 per cent complete at year-end and remains on target for a 2015 start-up. Phase 1

160,000

Debottleneck

Alberta has issued the final terms of reference for Syncrude’s MLX project.

Imperial Oil Limited •

Phase 1

Base Operations

Updated: Feb 2014

Suncor says that during the fourth quarter, maintenance was completed at its Upgrader 2 vacuum tower and related units. The company says that hot bitumen infrastructure commissioned in the third quarter of 2013 has increased the takeaway capacity of bitumen and unlocked additional mining production. Millennium Mine

Total E&P Canada Ltd. Joslyn North Mine

Updated: Mar 2013

Project partner Suncor Energy says an updated timing for the Joslyn sanction decision will be made available when it is ready. Phase 1

100,000

2021

Approved

NORTH ATHABASCA REGION — IN SITU Athabasca Oil Corporation Birch

Updated: Dec 2013

Athabasca says its work at Birch currently relates to regulatory compliance and preliminary engineering on future site access infrastructure. The company is currently reviewing the optimal size of the first project. Phase 1

12,000

TBD

Dover West Carbonates (Leduc)

Announced Updated: Dec 2013

A fourth production cycle for the TAGD pilot test was scheduled for the fourth quarter of 2013. Athabasca had been encouraged by results so far.

294,000

1967

Operating

4,000

2007

Operating

Millennium Debottlenecking

23,000

2008

Operating

Phase 1 Demonstration

6,000

2016

Approved

North Steepbank Extension

180,000

2012

Operating

Phase 2 Demonstration

6,000

TBD

Application

Steepbank Debottleneck Phase 3

APRIL 2014 | OILSANDSREVIEW.COM

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P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

Dover West Sands & Clastics

REGULATORY STATUS

Updated: Nov 2013

CURRENT PROJECT

12,000

2016

Application

Phase 2

35,000

2019

Announced

Phase 3

35,000

2020

Announced

Phase 4

35,000

2022

Announced

Phase 5

35,000

2024

Announced

Poplar Creek

Updated: Mar 2013

BP says that ongoing appraisal activities include delineation drilling, seismic acquisition and appraisal of water sources.

Experimental Pilot

1,000

2012

Suspended

Phase 1

10,000

TBD

Announced

Phase 2

40,000

TBD

Announced

Grizzly Oil Sands ULC

10,000

TBD

Approved

Dover

Updated: Feb 2014

Brion Energy and the Fort McKay First Nation have reached an agreement regarding the Dover project, and all objections to the Alberta Energy Regulator’s approval have been removed.

Updated: Feb 2014

The Alberta Energy Regulator says it will defer decisions on applications for in situ oilsands projects in the new “shallow thermal area” of the Athabasca region until it has developed formal regulatory requirements. Grizzly Thickwood is one of five impacted projects.

Brion Energy Corporation •

Updated: Feb 2014

Thickwood

Terre de Grace

REGULATORY STATUS

The E-T Energy Poplar Creek pilot project is no longer operating, but the expanded field test is able to proceed, subject to regulatory approval and financing.

BP p.l.c.

Pilot

START-UP

E-T Energy Ltd.

Athabasca Oil Corporation is awaiting regulatory approval for the Dover West Sands Phase 1. Phase 1

CAPACITY

Phase 1

6,000

2017

Application

Phase 2

6,000

TBD

Application

Husky Energy Inc. Saleski

Updated: May 2013

Husky filed the regulatory application for its Saleski pilot in early May 2013. Carbonate Pilot

3,000

2017

Application

Dover North Phase 1

50,000

2016

Approved

Dover North Phase 2

50,000

2018

Approved

Dover South Phase 3

50,000

2021

Approved

Dover South Phase 4

50,000

2023

Approved

Husky says that Sunrise was 85 per cent complete at the end of the year and is advancing as planned toward start-up in the second half of 2014. Initial engineering is underway for the next phase of the project.

Dover South Phase 5

50,000

2025

MacKay River

Approved

Sunrise

Updated: Feb 2014

Phase 1

60,000

2014

Construction

Updated: Oct 2013

Phase 2A

70,000

2018

Approved

Phase 2B

70,000

2020

Approved

Phase 1

35,000

2015

Construction

Phase 2

40,000

2018

Approved

Imperial Oil Limited

Phase 3

40,000

2020

Approved

Phase 4

35,000

2022

Approved

Alberta has issued the final terms of reference for Imperial’s Aspen project.

Canadian Natural Resources Limited Birch Mountain

Updated: Dec 2013

Canadian Natural says Birch is in the planning stages. Phase 1

60,000

2019

Announced

Phase 2

60,000

2023

Announced

Cenovus Energy Inc. East McMurray

Updated: Dec 2013

30,000

TBD

Steepbank

Announced Updated: Dec 2013

Cenovus says this project remains part of its portfolio of long-term development opportunities. Phase 1

30,000

TBD

Announced

Phase 1

45,000

2020

Application

Phase 2

45,000

TBD

Application

Phase 3

45,000

TBD

Application

Tamarack

Updated: Feb 2014

The Alberta Energy Regulator says it will defer decisions on applications for in situ oilsands projects in the new “shallow thermal area” of the Athabasca region until it has developed formal regulatory requirements. Ivanhoe Tamarack is one of five impacted projects. Phase 1

20,000

2017

Application

Phase 2

20,000

TBD

Application

Koch Exploration Canada, L.P. •

Dunkirk

Updated: Feb 2014

Alberta has issued the proposed terms of reference for Koch’s Dunkirk SAGD project, one of the first steps in the regulatory process.

Updated: Feb 2014

Phase 1

30,000

2018

Announced

Cenovus says its dewatering pilot project, designed to remove an underground layer of nonpotable water sitting on top of the oilsands deposit, was successfully concluded during the fourth quarter of 2013. Approximately 70 per cent of the top water was removed during the pilot and replaced with compressed air. Regulatory approval for the Telephone Lake project is anticipated in the second quarter of 2014.

Phase 2

30,000

TBD

Announced

Telephone Lake

Updated: Feb 2014

Ivanhoe Energy Inc.

Cenovus says this project remains part of its portfolio of long-term development opportunities. Phase 1

Aspen

Phase A

45,000

TBD

Application

Phase B

45,000

TBD

Application

Marathon Oil Corporation Birchwood

Updated: Apr 2013

Marathon filed its regulatory application in 2012. Regulatory approval and project sanctioning were expected in 2013. Demonstration

12,000

2017

Application

NOW EXPANDED TO INCLUDE PROJECTS IN THE COLD LAKE, PEACE RIVER AND INDUSTRIAL HEARTLAND REGIONS

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P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

CURRENT PROJECT

Oak Point Energy Ltd. Updated: Jan 2013

The ERCB and Alberta Environment have approved Oak Point’s Lewis project, which is estimated to have a capital cost of $65 million. 1,720

TBD

Rigel

Updated: Dec 2013

Prosper Petroleum filed its regulatory application for the Rigel SAGD project in November 2013. 10,000

2017

Application

Updated: Feb 2014

12,000

2016

12,000

2012

6,000

2016

Application

12,000

2018

Application

Phase 2B

6,000

2018

Application

Dover

Updated: Oct 2013

N-Solv says hot oil is currently being circulated into the reservoir to open a path between the injection well and the producer well. Propane or butane injection on the solvent-only production pilot is expected to begin in the first quarter of 2014. Operations will continue until 2015. 500

2013

Firebag

Operating Updated: Feb 2014

Suncor says that poduction at the Firebag complex has fully ramped up with daily production rates reaching approximately 95 per cent of capacity in the fourth quarter of 2013; however, production was reduced throughout the quarter due to a third-party natural gas outage and subsequent curtailments that impacted the Fort McMurray region.

Announced Updated: Feb 2014

33,000

2002

Operating

5,000

2015

Construction

20,000

2017

Application

1,000

TBD

Harper

Updated: Mar 2013

Legend Lake

Operating Updated: Dec 2013

Sunshine says regulatory approval for the first 10,000-barrel-per-day phase was expected in 2013. The company is completing field work for its environmental analysis, which will support work for significant commercial expansion.

Operating

Phase 2A

Demonstration Plant

MacKay River

Announced

Sunshine Oilsands Ltd.

Updated: Feb 2014

Suncor Energy Inc.

TBD

Carbonate Pilot

STP-McKay

Phase 1 Expansion

TBD

40,000

MR2

Application

Southern Pacific says it continues to make progress in terms of developing an overall understanding of how to best optimize SAGD well performance. The lack of sufficient wellbore conformance requiring production rates to be restricted in several of the well pairs continues to be the biggest issue delaying ramp-up. An inflow control device (ICD) was installed on one well pair in January, and that well pair has become the most prolific in the field. A second ICD installation is underway. Southern Pacific’s plan is to evaluate the performance of the first two ICD installations for a few months, and if results are successful, will look to continue implementing these configurations into several other well pairs. Phase 1

40,000

Phase 2

Debottleneck

Southern Pacific Resource Corp. •

Phase 1

Phase 1

The Alberta Energy Regulator says it will defer decisions on applications for in situ oilsands projects in the new “shallow thermal area” of the Athabasca region until it has developed formal regulatory requirements. SilverWillow Audet is one of five impacted projects. Pilot

Updated: Aug 2013

Suncor says it continues to progress a debottleneck of the MacKay River facility that is intended to increase production capacity by approximately 20 per cent for a total capacity of 38,000 barrels per day by 2015. Suncor also continues to work toward a 2014 sanction decision of the MacKay River expansion project.

SilverWillow Energy Corporation Audet

REGULATORY STATUS

After the MacKay River expansion and debottlenecking at both Firebag and MacKay River, Lewis is expected to be Suncor’s next area of in situ development focus.

Approved

Prosper Petroleum Ltd.

Phase 1

START-UP

Lewis

Lewis

Pilot

CAPACITY

Phase A1

10,000

2016

Application

Phase A2

30,000

TBD

Announced

Phase B1

30,000

TBD

Announced

Phase B2

30,000

TBD

Thickwood

Announced Updated: Feb 2014

Alberta has issued the final terms of reference for Sunshine’s Thickwood expansion project. Phase A1

10,000

2015

Approved

Phase A2

30,000

2017

Announced

Phase B

30,000

2021

West Ells

Announced Updated: Aug 2013

Sunshine says that some of the work on the West Ells site has been slowed down temporarily as the company seeks additional funding. Phase A1

5,000

2014

Construction

Phase A2

5,000

2014

Approved

Phase A3

30,000

2018

Announced

Phase B

20,000

2025

Announced

Phase C1

30,000

TBD

Announced

Phase C2

30,000

TBD

Announced

Stage 1

35,000

2004

Operating

Stage 2

35,000

2006

Operating

Cogeneration and Expansion

25,000

2007

Operating

Stage 3

42,500

2011

Operating

Stage 4

42,500

2012

Operating

Stage 5

62,500

2018

Approved

Stage 6

62,500

2019

Approved

Phase 1 Pilot

Stage 3-6 Debottleneck

23,000

TBD

Application

Phase 2

SOUTH ATHABASCA REGION — IN SITU Alberta Oilsands Inc. Clearwater West

Updated: Oct 2013

Alberta Oilsands has announced its oilsands leases near the Fort McMurray airport will be cancelled, wiping out the company’s Clearwater West project. 4,350

TBD

Cancelled

25,000

2016

Cancelled

Gymnasiums

Sprung Structures

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39


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

Athabasca Oil Corporation

CURRENT PROJECT

Hangingstone

Updated: Dec 2013

Athabasca says that construction at Hangingstone is nearly half complete and remains on budget and on schedule for first steam in the fourth quarter of 2014. Phase 1

12,000

2015

Construction

Phase 2

40,000

2017

Application

Phase 3

30,000

2018

Application

BlackPearl Resources Inc. Blackrod

Updated: Dec 2013

BlackPearl says that results from the SAGD pilot continue to meet expectations, and cumulative production from the pilot has reached 200,000 barrels of oil. Steam injection in the second well pair commenced in early November. Pilot

Updated: Feb 2014

Phase C Stage 2

20,000

2007

Operating

Phase D

30,000

2009

Operating

Phase E

30,000

2009

Operating

Phase F

45,000

2014

Construction

Phase G

40,000

2015

Construction

Phase H

40,000

2016

Construction

Phase J

50,000

2019

Application

Future Optimization

15,000

TBD

Grand Rapids

Announced Updated: Feb 2014

Cenovus expects regulatory approval for the commercial Grand Rapids project in the first quarter of 2014.

Operating

Phase 1

20,000

2015

Application

Pilot

600

2011

Operating

Phase 2

30,000

2018

Application

Phase A

60,000

2017

Application

Phase 3

30,000

2021

Application

Phase B

60,000

TBD

Application

Phase C

60,000

TBD

Updated: Dec 2013

Canadian Natural says Gregoire Lake is in the planning stages. Phase 1

60,000

TBD

Phase 2

60,000

TBD

Grouse

Announced

Commercial

50,000

2018

Kirby

Announced

Phase A

45,000

2017

Construction

Phase B

45,000

TBD

Approved

Phase C

40,000

TBD

Application

Canadian Natural achieved first steam at Kirby South on September 16 and shipped its first barrel of oil on November 4. Steam is currently being circulated in 28 well pairs on four pads to initiate the SAGD processes. Canadian Natural says the well response is performing as expected and production is targeted to grow to 40,000 barrels per day in the fourth quarter of 2014. All evaporators, steam generators and oil-treating vessels are in service, and the first shipment of crude oil produced from commissioning activities was delivered on Nov. 4, 2013. KS1 - Kirby South

40,000

2013

Operating

KN1 - Kirby North

40,000

2016

Approved

KN2 - Kirby North

60,000

2019

Application

West Kirby

Updated: Dec 2013

Cavalier owner Paramount Resources’ front-end engineering and design for Phase 1 continues, along with geotechnical work and drilling of additional source water and disposal wells. The company anticipates regulatory approvals by mid-2014 and continues to evaluate funding alternatives. Phase 1

10,000

2017

Application

Phase 2

35,000

TBD

Announced

Phase 3

35,000

TBD

Announced

Phase 1

Phase 1A Phase 1B Phase C Phase D

2002

Operating

8,800

2008

Operating

40,000

2011

Operating

40,000

2012

TBD

Announced Updated: Dec 2013

Cenovus says this project remains part of its portfolio of long-term development opportunities. Phase 1

30,000

TBD

Announced

Phase 1

72,000

2008

Operating

Kinosis (K1A)

40,000

TBD

Construction

Kinosis (K1B)

40,000

TBD

Approved

CNOOC Limited Long Lake

Updated: Nov 2013

Connacher Oil and Gas Limited Great Divide

Updated: Feb 2014

Connacher says that four new infill wells at Pod One are on production and averaged 1,120 barrels per day in December. Steam injection on four new SAGD well pairs continued through the end of Q4/2013 and into early January. All of the wells are now on production.

Updated: Feb 2014

10,000

30,000

Winefred Lake

Cenovus Energy Inc.

Cenovus says the Phase F expansion is on schedule and on budget with about 44 per cent of the project complete and engineering, procurement and plant construction work continuing. Engineering work also continues for Phase G.

Approved Updated: Dec 2013

Cenovus says this project remains part of its portfolio of long-term development opportunities.

Cavalier Energy Inc.

Christina Lake

Application Updated: Feb 2014

Updated: Dec 2013

Updated: Dec 2013

Hoole

Narrows Lake

Cenovus says that site construction, engineering and procurement are progressing as expected, with overall progress for Phase A reaching 16 per cent completion at the end of 2014.

Canadian Natural says Grouse is in the planning stages. First production is expected between 2017 and 2019.

Pod One

10,000

2007

Operating

Algar

10,000

2010

Operating

Expansion 1A

12,000

TBD

Approved

Expansion 1B

12,000

TBD

Approved

ConocoPhillips Canada •

Surmont

Updated: Feb 2014

Alberta has issued the final terms of reference for ConocoPhillips Canada’s Surmont 3 project. Pilot

Operating

1,200

1997

Operating

Phase 1

27,000

2007

Operating

109,000

2015

Construction

Phase E

40,000

2013

Operating

Phase 2

Optimization (Phases C, D, E)

22,000

2015

Approved

Phase 3 - Tranche 1

45,000

2020

Announced

Phase F

50,000

2016

Construction

Phase 3 - Tranche 2

45,000

TBD

Announced

Phase G

50,000

2017

Approved

Phase 3 - Tranche 3

45,000

TBD

Announced

Phase H

50,000

2019

Application

Foster Creek

Updated: Feb 2014

Phase F is on schedule and on budget with 90 per cent of the project complete, and first production expected in the third quarter of 2014, with full ramp-up to be completed within 12–18 months. Phase G is 66 per cent complete with initial production expected in 2015. Phase H is 35 per cent complete and first production is expected in 2016. Cenovus has adjusted timelines for achieving full production capacity at these expansions as it delays optimization projects until it has had more time to assess new operating strategies. Phase A Phase B Debottleneck Phase C Stage 1

40

Foster Creek (continued)

REGULATORY STATUS

2011

Gregoire Lake

START-UP

800

Canadian Natural Resources Limited

CAPACITY

OILSANDS REVIEW | APRIL 2014

Devon Canada Corporation •

Jackfish

Updated: Feb 2014

Devon says that construction of the Jackfish 3 project is now nearly complete, with plant start-up expected in the third quarter of 2014. Phase 1

35,000

2007

Operating

Phase 2

35,000

2011

Operating

35,000

2014

24,000

2001

Operating

Phase 3

6,000

2003

Operating

Jackfish East

10,000

2005

Operating

Expansion

Construction Updated: Sep 2012

20,000

2018

Announced


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

REGULATORY STATUS

START-UP

Pike

Updated: Mar 2013

CURRENT PROJECT

Devon says the Pike project continues to move through the regulatory process.

2016

Construction Approved

Phase 3B

50,000

2018

1B

35,000

2017

Application

Phase 3C

50,000

2020

1C

35,000

2018

Application

Surmont

Updated: Feb 2014

Phase 1

5,500

2014

Operating

Phase 2

5,500

TBD

Approved

May River

Updated: Dec 2013

Phase 1

6,000

2016

Application

Phase 2

6,000

TBD

Application

Harvest Operations Corp. BlackGold

Updated: Dec 2013

Phase 1

10,000

2014

Construction

Phase 2

20,000

TBD

Application

McMullen

2012

20,000

Operating

2016

Pilot

Construction

1999

Application

Updated: Jul 2013

Phase 1

30,000

2018

Application

Phase 2

30,000

2020

Application

Updated: Feb 2014

Leismer Demonstration

10,000

2010

Operating

Corner

40,000

2017

Approved

Leismer Commercial

10,000

TBD

Approved

Leismer Expansion

20,000

TBD

Approved

Corner Expansion

40,000

TBD

Application

Hangingstone

20,000

TBD

Application

Leismer Northwest

20,000

TBD

Application

Leismer South

20,000

TBD

Application

Thornbury

40,000

TBD

Application

Thornbury Expansion

20,000

TBD

Application

40,000

TBD

Phase 1

Updated: Nov 2012

Meadow Creek

Muskwa 10,000

Announced Updated: Nov 2012

Updated: Sep 2013

Phase 1

40,000

TBD

Approved

Application

Phase 2

40,000

TBD

Approved

12,000

2015

2015

Surmont Energy Ltd.

Laricina Energy Ltd. Germain

Wildwood

Updated: Dec 2013

Laricina says it converted two well pairs from steam injection to production during the third quarter of 2013, and converted a third well pair subsequent to the quarter. The company expected bitumen production from these well pairs in the fourth quarter, as well as to convert additional SAGD well pairs from steam injection to production throughout the fourth quarter and into 2014. Phase 1 CDP

TBD

Chard

Operating

Koch Exploration Canada, L.P.

Pilot

41,000

Suncor Energy Inc.

Updated: Dec 2012 11,000

Application

Phase 3

Kai Kos Dehseh

Updated: Feb 2014

Hangingstone pilot

Application

TBD

Statoil and partner PTTEP have entered into a transaction where the KKD asset will be split between the two firms, which currently own 60 per cent and 40 per cent, respectively. Statoil will continue as operator and now 100 per cent owner of the Leismer and Corner projects while PTTEP will own 100 per cent of the Thornbury, Hangingstone and South Leismer areas.

Construction underway. Bantrel has been awarded a contract to provide engineering, procurement and construction services for the field facilities component of the project. Expansion

TBD

41,000

Statoil Canada Ltd.

Japan Canada Oil Sands Limited Hangingstone

41,000

Phase 2

Sepiko Kesik

Updated: Feb 2014

755

Phase 1

OSUM says it anticipates regulatory approval for Sepiko Kesik in 2014, requiring financing in 2015-16.

Husky says that CHOPS production from 27 wells located on three well pads commenced during the fourth quarter of 2014, and at the air injection pilot three additional horizontal production wells were placed on production. Thermal Conduction Pilot

Approved Updated: Oct 2013

OSUM Oil Sands Corp.

Husky Energy Inc.

Phase 1

Updated: Oct 2012 Application

Value Creation Inc. Advanced TriStar

Updated: Feb 2014

5,000

2013

Operating

Phase 2

30,000

2018

Application

Phase 3

60,000

TBD

Application

ATS-1

15,000

2016

Application

Phase 4

60,000

TBD

Application

ATS-2

30,000

2018

Application

Updated: Dec 2013

ATS-3

30,000

2020

Saleski

Laricina says that three of four wells were in their respective production cycles of the cyclicSAGD process during the third quarter of 2013, helping to achieve the highest production rates since the pilot began operations in 2011. The construction and start-up schedule for Phase 1 has been delayed while the company seeks additional financing. Experimental Pilot

The Alberta Energy Regulator says it will defer decisions on applications for in situ oilsands projects in the new “shallow thermal area” of the Athabasca region until it has developed formal regulatory requirements. Advanced TriStar is one of five impacted projects.

TriStar

Pilot

1,800

2011

Operating

10,700

2016

Approved

COLD LAKE REGION — IN SITU

Phase 2

30,000

2017

Announced

Baytex Energy Corp.

Phase 3

60,000

2020

Announced

Phase 4

60,000

2023

Announced

Phase 5

60,000

2026

Announced

Phase 6

60,000

TBD

Announced

Christina Lake

Updated: Feb 2014

MEG says that Phase 2B achieved first production in the fourth quarter of 2013. Phase 1 Pilot

1,000

TBD

Gemini

2008

Operating

Phase 2A

22,000

2009

Operating

Phase 2B

35,000

2013

Operating

Approved

Updated: Dec 2013

Baytex says the SAGD well pair for its Gemini SAGD pilot was drilled in the third quarter of 2013, and the company remains on track for steaming by early 2014. Pilot

1,200

2014

Construction

Commercial

5,000

2016

Approved

Birchwood Resources Inc. Sage

3,000

Application Updated: Feb 2014

Value Creation says it is funded for the TriStar project but has not yet decided on a construction timeline.

Phase 1

MEG Energy Corp. •

Updated: Feb 2014 50,000

Application

Algar Lake

REGULATORY STATUS

Phase 3A

2016

Grizzly corporate part owner Gulfport Energy says the company continues to work toward filing regulatory applications for a 12,000-barrel-per-day SAGD project at May River by the end of 2013.

Christina Lake (continued)

35,000

Grizzly achieved first steam at Algar Lake during the fourth quarter of 2013 and expects first production during the first quarter of 2014.

START-UP

1A

Grizzly Oil Sands ULC •

CAPACITY

Updated: Jan 2013

Birchwood has filed its regulatory application for the $230-million Sage project. Propak Systems of Airdrie, Alta., will execute modular surface facility construction. Pilot

5,000

2015

Application

APRIL 2014 | OILSANDSREVIEW.COM

41


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

CURRENT PROJECT

Canadian Natural Resources Limited Updated: Feb 2014

Canadian Natural says it continues to work with the Alberta Energy Regulator on the causation review of bitumen emulsion seepages identified in spring 2013. The company believes the cause is mechanical failures of wellbores in the vicinity of the four impacted locations. The company has reviewed all the wellbores in the vicinity of each seepage and has prioritized further work to confirm the mechanical failure, pending regulatory approval for surface access. The steaming plan has been modified, with steaming reduced in some areas. The company has added extensive information about this process to its website including aerial photographs. Wolf Lake

13,000

1985

Operating

Primrose South

45,000

1985

Operating

Primrose North

30,000

2006

Operating

Primrose East

32,000

2008

Operating

Walleye

Updated: Mar 2013

Devon says the Walleye project has been deferred by a year and will be assessed for inclusion in its 2014 budget. 9,000

2017

Application

Caribou

Updated: Nov 2010 10,000

TBD

Tucker

Approved Updated: Jun 2013

30,000

2006

Operating

Imperial Oil Limited Cold Lake

Updated: Feb 2014

Imperial says that the Nabiye expansion was 65 per cent complete at the end of the fourth quarter of 2013. Plant construction progressed somewhat slower than planned due to lower contractor productivity and harsh winter conditions. Target start-up, although under pressure, remains year-end 2014. Phase 1-10

110,000

1985

Operating

Phase 11-13

30,000

2002

Operating

Phase 14-16

40,000

2014

Construction

Taiga

Updated: Jul 2013

OSUM says engineering work is underway and some long-lead items have been ordered. Project sanction is expected in 2013. Financing is required. Phase 1

23,000

2016

Approved

Phase 2

22,000

2018

Approved

Pengrowth Energy Corporation •

2011

TBD

TBD

Cadotte Pilot

Updated: Feb 2014

Operating

Updated: Nov 2012

Seal/Cadotte

On Hold Updated: Feb 2014

Murphy says the two-well pilot is showing promise, with the second well showing the best response. Production in early 2014 had reached as high as 670 barrels per day with a steam to oil ratio of 1.8:1. Pilot

TBD

TBD

Operating

Northern Alberta Oil Ltd. Updated: Dec 2013

Company owner Deep Well Oil & Gas has announced the completion of its first SAGD well pair for the demonstration project at Sawn Lake. Work is anticipated to begin shortly on the building of the steam generation, water handling, oil treating, water source and disposal facilities, along with pipeline tie-ins between the production facility and water source wells. Steam operations are expected to begin in early January, with first oil production anticipated in the first half of 2014. 700

TBD

Approved

Penn West Petroleum Ltd. Harmon Valley South

Updated: Dec 2013

Penn West has announced that in 2014 it will divest its oilsands assets in the Peace River region of Alberta as part of a strategy to prioritize light oil development. These assets comprise the Peace River Oil Partnership, which was established in 2010 with an affiliate of China Investment Corporation. Pilot

TBD

TBD

Seal Main

Construction Updated: Dec 2013

Penn West has announced that in 2014 it will divest its oilsands assets in the Peace River region as part of a strategy to prioritize light oil development. Pilot Commercial

75

2011

Operating

10,000

2015

Application

Petrobank Energy and Resources Ltd. Updated: Dec 2013

Petrobank has received regulatory approval to initiate two cyclic steam stimulation cycles with each of its THAI production wells. The company is preparing surface facilities for CSS operations and expected to initiate the first three-month steam cycle in late November 2013. Experimental THAI Demonstration

10,000

2014

Approved

Phase 2

10,000

TBD

Announced

Royal Dutch Shell plc Peace River

Lindbergh

Alberta has issued the final terms of reference for Pengrowth’s Lindbergh expansion project.

Updated: Dec 2013

Shell has sanctioned the Carmon Creek project, which will be the most significant project ever undertaken in the Peace River region.

1,260

2012

Operating

Cadotte Lake

12,500

1986

Operating

Phase 1

11,240

2015

Construction

Carmon Creek - Phase 1

40,000

2017

Construction

Phase 2

17,500

2017

Application

Carmon Creek - Phase 2

40,000

2018

Approved

Phase 3

20,000

2018

Announced

Southern Pacific Resource Corp.

Pilot

Royal Dutch Shell plc

Red Earth

Orion

Updated: May 2013

Shell had previously put up for sale its Orion asset but says it has not received any offers that reflect its value and has ended sale activities. Phase 1

10,000

2007

Operating

Phase 2

10,000

TBD

Approved

Sawn Lake

Updated: Dec 2013

Andora majority owner Pan Orient Energy says that drilling of the first SAGD well pair has been completed, final site preparation and construction is underway, and equipment for the facility is ready for installation. Steam injection at the Sawn Lake SAGD demonstration project is scheduled for the end of January 2014, with production anticipated early in the second quarter of 2014. 1,400

2014

Construction

Baytex Energy Corp. Cliffdale

Updated: Feb 2014

A hearing has wrapped up in Peace River relating to public concerns about health impacts of air pollution from bitumen storage tanks associated with Baytex’s cold production in the region. The hearing panel is expected to make its final comments public on the Alberta Energy Regulator website in March. Pilot

OILSANDS REVIEW | APRIL 2014

Pilot Expansion Commercial

3,000

TBD

Announced

10,000

TBD

Announced

NORTH ATHABASCA REGION — UPGRADER Terre de Grace

Andora Energy Corporation

Demonstration

Updated: Apr 2013

Southern Pacific says the cyclic steam stimulation pilot at Red Earth is currently shut in.

BP p.l.c.

PEACE RIVER REGION — IN SITU

42

Updated: Feb 2013 TBD

Dawson

OSUM Oil Sands Corp.

REGULATORY STATUS

Murphy Oil Company Ltd.

Pilot

Husky Energy Inc.

Phase 1

Pilot

Sawn Lake

Devon Canada Corporation

Demonstration

START-UP

Harmon Valley

Primrose & Wolf Lake

Phase 1

CAPACITY

2,000

2011

Operating

Updated: Mar 2013

BP says that ongoing appraisal activities include delineation drilling, seismic acquisition and appraisal of water sources. Pilot

8,400

TBD

Approved

Canadian Natural Resources Limited Horizon

Updated: Dec 2013

Canadian Natural says that operating performance at Horizon has been strong since the company executed its first major turnaround in May 2013. Horizon SCO production in the third quarter was approximately 112,000 barrels per day. The overall phased expansion to 250,000 barrels per day is 30 per cent physically complete, with the first phase in that expansion, Reliability, 91 per cent physically complete and five per cent under budget. Phase 1 Reliability - Tranche 2 Phase 2A

110,000

2009

Operating

5,000

2014

Construction

10,000

2015

Construction


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

Updated: Dec 2013

Horizon (continued) Phase 2B

45,000

2016

Construction

Phase 3

80,000

2017

Construction

Ivanhoe Energy Inc. Tamarack

Updated: Feb 2014

The Alberta Energy Regulator says it will defer decisions on applications for in situ oilsands projects in the new “shallow thermal area” of the Athabasca region until it has developed formal regulatory requirements. Ivanhoe Tamarack is one of five impacted projects. Phase 1

34,784

2017

Application

FIND IT

Suncor Energy Inc. •

Base Operations

Updated: Feb 2014

Suncor says that during the fourth quarter, maintenance was completed at its Upgrader 2 vacuum tower and related units. The company says that hot bitumen infrastructure commissioned in the third quarter of 2013 has increased the takeaway capacity of bitumen and unlocked additional mining production. U1 and U2

225,000

1967

Operating

Millennium Vacuum Unit

35,000

2005

Operating

Millennium Coker Unit

97,000

2008

Operating

Syncrude Canada Ltd. •

Mildred Lake/Aurora

Updated: Feb 2014

Alberta has issued the final terms of reference for Syncrude’s MLX project. Base Plant Stage 1 & 2 Debottleneck

250,000

1978

Operating

Stage 3 Expansion (UE-1)

100,000

2006

Operating

75,000

TBD

Announced

Stage 3 Debottleneck

SOUTH ATHABASCA REGION — UPGRADER CNOOC Limited Long Lake Phase 1

Updated: Nov 2013 58,500

2009

Operating

Value Creation Inc. Advanced TriStar

Updated: Feb 2014

The Alberta Energy Regulator says it will defer decisions on applications for in situ oilsands projects in the new “shallow thermal area” of the Athabasca region until it has developed formal regulatory requirements. Advanced TriStar is one of five impacted projects.

ATS-1

12,750

2016

Application

ATS-2

25,500

2018

Application

ATS-3

25,500

2020

TriStar

Application Updated: Feb 2014

Value Creation says it is funded for the TriStar project but has not yet decided on a construction timeline. Pilot

820

TBD

Approved

INDUSTRIAL HEARTLAND REGION — UPGRADER

Need a drill collar? Need a hotel in High Level? Need safety personnel? Need to meet compliance standards? Need plant maintenance? Need a warehouse? Need a1/2 tarp? VERTICAL Need hydraulic repair? JWN Need environmental analysis? Need a control valve? 487551 Need mud additives?

ALL THE SMALL PARTS AND BIG PLAYERS ARE FOUND ON

North West Upgrading Inc. •

Redwater Upgrader

Updated: Feb 2014

North West Upgrading says a major milestone has been reached with the delivery to the Redwater region of the heavy-walled reactor pressure vessel segments. Awards for major engineering procurement and construction contracts for various process units have either been made or are targeted to be completed in early 2014. Phase 1

50,000

2017

Construction

Phase 2

50,000

TBD

Approved

Phase 3

50,000

TBD

Approved

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Shell Albian Sands Scotford Upgrader 1

Updated: Dec 2013

Minority partner Marathon Oil Corporation says the Athabasca Oil Sands Project has recently shown “outstanding” performance due to robust reliability and realizations, but is expecting significant planned downtime in the fourth quarter. Commercial

155,000

2003

Operating

Expansion

100,000

2011

Operating

Value Creation Inc. Heartland

Updated: Mar 2013

Reports are that Value Creation could be up and running within 18 months of project sanction, but funding remains unclear. Phase 1

46,300

TBD

On Hold

Phase 2

46,300

TBD

Approved

Phase 3

46,300

TBD

Approved

COSSD.COM

APRIL 2014 | OILSANDSREVIEW.COM

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