Oilsands Review Project Status 09 2013

Page 1

P R O J E C T S TAT U S

project status

09 13

Athabasca Region Industrial Heartland Region Cold Lake Region

Sourced from regulatory filings 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 projects in the Athabasca oilsands region 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

CURRENT PROJECT

New information this month

PEACE RIVER REGION

CAPACITY

START-UP

NORTH ATHABASCA REGION — MINING

­

Canadian Natural Resources Limited

A sanction decision on Fort Hills is expected in the second half of 2013.

Fort Hills

Updated: May 2013

­

Phase 1

Canadian Natural says during the first quarter the Horizon project achieved strong, reliable production volumes, reflecting a steady, sustained increase in reliability over the last year as the company focuses on enhanced maintenance strategy and operational discipline. Overall, the Phase 2/3 expansion is 20 per cent complete.

­

Debottleneck

­

Voyageur South

­

Horizon

­

Phase 1

­

Tranche 2

135,000

2008

Operating

5,000

2012

Operating

­

Phase 2A

10,000

2015

Construction

­

Phase 2B

45,000

2016

Construction

­

Phase 3

80,000

2017

Construction

Imperial Oil Limited

REGULATORY STATUS

Updated: Mar 2013

165,000

2017

25,000

TBD

Approved Approved Updated: May 2012

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

Phase 1

120,000

TBD

Application

Syncrude Canada Ltd. ­

Mildred Lake/Aurora

Updated: May 2013

Canadian Oil Sands Limited says Syncrude experienced several unplanned outages during the first quarter of 2013, but progress has been made in the operations area, with the facility experiencing optimal 36-month run lengths for two of its three cokers.

Updated: Apr 2013

­

Base Mine Stage 1 & 2 Expansion

290,700

1978

Operating

Imperial Oil announced the start-up of one of three froth treatment trains at Kearl on April 27. Start-up of the remaining two will happen sequentially as planned, bringing production to capacity of 110,000 barrels per day later in 2013. The Kearl expansion project is approximately 32 per cent complete.

­

Stage 3 Expansion

116,300

2006

Operating

­

Aurora South Train 1

100,000

2016

Approved

­

Aurora South Train 2

100,000

2018

Approved

­

Phase 1

110,000

­

Phase 2

­

Phase 3 Debottleneck

­

Kearl

2013

Operating

Teck Resources Limited

110,000

2015

Construction

­

70,000

2020

Approved

The Canadian Environmental Assessment Agency estimates the federal review schedule for the project application to be approximately two years, so 2015 would be the earliest approval would be granted. Teck says a field exploration program was completed during the first quarter of 2013 to acquire additional geotechnical information to support future engineering studies.

Shell Albian Sands •

Jackpine

Updated: Jul 2013

­

Phase 1A Phase 1B

­

Expansion

­

Muskeg River

100,000 100,000 100,000

2010 TBD 2017

Phase 1

74,600

2021

Application

­

Phase 2

84,000

2024

Application

­

Phase 3

79,300

2027

Application

Approved

­

Phase 4 Equinox

39,400

2030

Application

Approved

Total E&P Canada Ltd.

Operating

Updated: May 2013

Minority partner Marathon Oil Corporation is reporting improved reliability at the Athabasca Oil Sands Project. ­

Commercial

­

Expansion & Debottlenecking

­

Pierre River

155,000 115,000

2002 TBD

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. ­

Approved

NORTH ATHABASCA REGION — IN SITU

Updated: Mar 2013

­

Phase 1

100,000

2018

Application

­

Phase 2

100,000

TBD

Application

Suncor Energy Inc. Base Operations

­

Operating

A joint review panel of the Canadian Environmental Assessment Agency and Energy Resources Conservation Board is expected to submit its report on the Pierre River project by the end of 2013.

­

Updated: May 2013

­

The federal joint review panel has issued conditional approval despite “significant” environmental impacts. Now the project will go through the Alberta regulatory process and obtain approval from the federal environment minister. ­

Frontier

Updated: Jun 2013

Suncor reported it had reduced its production in June as a result of the precautionary shutdown of Enbridge pipelines in the Fort McMurray region due to flooding. However, Suncor does not anticipate that the reduction will impact its ability to meet its annual production guidance.

Phase 1

100,000

2018

Approved

Athabasca Oil Corporation ­

Birch

Updated: May 2013

Athabasca says that capital expenditures related to Birch in the first quarter related primarily to regulatory compliance activities and preliminary engineering on future site access infrastructure. The company says it continues to prepare its regulatory application (expected to be filed in 2013) and is still reviewing the optimum size of the first phase. ­

Phase 1

­

Dover West Carbonates (Leduc)

12,000

TBD

Announced Updated: May 2013

294,000

1967

Operating

4,000

2007

Operating

AOC says construction continues on a TAGD heater assembly facility near Strathmore, Alta., which is expected to be commissioned in the second quarter. AOC says it has completed a third production phase at its Dover West TAGD pilot, confirming the production of bitumen from between the two horizontal wellbores, indicating good mobilization at temperatures around 90 degrees Celsius. AOC says it is very encouraged by these results and will seek corporate sanction of the demonstration project as soon as regulatory approval (anticipated this year) is received.

Millennium Debottlenecking

23,000

2008

Operating

­

Phase 1 Demonstration

6,000

2015

Application

North Steepbank Extension

180,000

2012

Operating

­

Phase 2 Demonstration

6,000

TBD

Application

­

Millennium Mine

­

Steepbank Debottleneck Phase 3

­ ­

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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: Dec 2012

In 2012 AOC acquired approximately 30,000 acres of oilsands leases contiguous to its existing Dover West assets. The company says its Dover West Sands project could now eventually support development up to 270,000 barrels per day. Regulatory approval and internal sanction for the first 12,000-barrel-per-day phase are expected in 2013. AOC says it is leveraging work done on FEED for its Hangingstone project for Dover West.

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

E-T Energy Ltd. •

Poplar Creek

Updated: Jul 2013

­

Phase 1

12,000

2015

Application

The Alberta government has announced it will cancel several oilsands leases surrounding Fort McMurray in order to enable community growth. E-T Energy is one of the companies that is impacted, and it’s also advertising an interest in an outright sale, joint venture, farm-in or takeover of its Poplar Creek asset. The management team says the next phase of the project will work with an investment of $35 million.

­

Phase 2

35,000

2018

Announced

­

Experimental Pilot

1,000

2007

Operating

­

Phase 3

35,000

2020

Announced

­

Phase 1

10,000

TBD

Announced

­

Phase 4

35,000

2022

Announced

­

Phase 2

40,000

TBD

Announced

­

Phase 5

35,000

2024

Announced

BP p.l.c. ­

Terre de Grace

Updated: Mar 2013

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

Pilot

10,000

TBD

Approved

Dover

Updated: Jun 2013

Dover Operating Corp. is now Brion Energy Corporation. The ERCB began a public hearing for the Dover project in Fort McMurray in April. Reportedly, the reason for the hearing was that the Fort McKay First Nation said that without a buffer zone, the project will impact the last remaining traditional land on the west side of the Athabasca River. ­

Dover North Phase 1

50,000

2016

Application

­

Dover North Phase 2

50,000

2018

Application

­

Dover South Phase 3

50,000

2020

Application

­

Dover South Phase 4

50,000

2022

Application

­

Dover South Phase 5

50,000

2024

­

MacKay River

­

Phase 1

35,000

­

Phase 2

­ ­

Thickwood

Updated: Dec 2012

Grizzly filed the regulatory application for the Thickwood project in December 2012. ­

Phase 1

6,000

2017

Application

­

Phase 2

6,000

TBD

Application

Application

­

Saleski

Updated: May 2013

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

Carbonate Pilot

Sunrise

3,000

2017

Application Updated: Jul 2013

Husky says Phase 1 at Sunrise is approximately 70 per cent complete and on track for first production in 2014. The central processing facility is 60 per cent complete with all critical modules delivered and equipment for Plant 1A installed. Field facilities are approximately 95 per cent complete, all pipelines are complete and the first well pad is being commissioned. All well pads are targeted to be complete by the end of 2013. To date, Husky says more than 2/3 of the total cost estimate has been spent. A design basis memorandum has been completed for the next phase of development, and work continues towards the FEED phase.

Updated: Jun 2013

­

Phase 1

60,000

2014

Construction

2015

Construction

­

Phase 2

50,000

2016

Approved

40,000

2018

Approved

­

Phase 3

50,000

2019

Approved

Phase 3

40,000

2020

Approved

Phase 4

35,000

2022

Approved

­

Phase 4

50,000

TBD

Approved

Canadian Natural Resources Limited ­

­

Husky Energy Inc.

Brion Energy Corporation ­

Grizzly Oil Sands ULC

Birch Mountain

Updated: Mar 2013

Canadian Natural says Birch is in the planning stages.

Imperial Oil Limited •

Aspen

­

Phase 1

60,000

2019

Announced

­

­

Phase 2

60,000

2023

Announced

Ivanhoe Energy Inc.

Cenovus Energy Inc. ­

East McMurray

­

Phase 1

­

Steepbank

­

Phase 1

Telephone Lake

• Updated: Aug 2012 30,000

TBD

Announced Updated: Aug 2012

30,000

TBD

Updated: Jul 2013

Imperial Oil has filed the proposed terms of reference for the Aspen project’s environmental impact assessment with Alberta Environment. Public review will be accepted until October. Phase 1

40,000

TBD

Tamarack

Announced

Updated: Jul 2013

Ivanhoe Energy has received a letter of non-objection from the Mikisew Cree First Nation regarding the Tamarack project. The company says it has now successfully secured letters of non-objection from five of the seven stakeholders that filed statements of concern and continues efforts to resolve the final two statements of concern.

Announced

­

Phase 1

20,000

2016

Application

Updated: Jul 2013

­

Phase 2

20,000

TBD

Application

Cenovus says its dewatering pilot continues and has been running as expected with positive results. Approximately 50 per cent of the water—which is sitting on top of the oilsands deposit— has been displaced and replaced by air. Cenovus plans to complete this pilot in the fourth quarter. Regulatory approval for commercial development is expected in 2014.

Marathon Oil Corporation ­

Birchwood

Updated: Apr 2013

­

Phase A

45,000

TBD

Application

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

­

Phase B

45,000

TBD

Application

­

Demonstration

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12,000

2017

Application

Warehousing

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P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

Oak Point Energy Ltd.

CURRENT PROJECT

Updated: Jan 2013

Harper

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

TBD

Approved

SilverWillow Energy Corporation •

Audet

Updated: Jul 2013

12,000

2016

Updated: Jul 2013

12,000

2012

Operating

6,000

2015

Application

Phase 2A

12,000

2017

Application

Phase 2B

6,000

2017

Application

Suncor Energy Inc. Dover

Updated: Mar 2013

500

2013

Firebag

Application

TBD

Announced

Phase B1

30,000

TBD

Announced

Phase B2

30,000

TBD

Announced Updated: Apr 2013

Sunshine says the capital cost forecast for the West Ells project has increased to $496 million from the previous estimate of $468 million. Steam injection is now expected to begin near the end of the third quarter or start of the fourth quarter rather than in the third quarter as previously scheduled.

Approved

30,000

2018

Announced

Updated: Jul 2013

Phase B

20,000

2025

Announced

Phase C1

30,000

TBD

Announced

Phase C2

30,000

TBD

Announced

Operating

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

Stage 3-6 Debottleneck

23,000

TBD

SOUTH ATHABASCA REGION — IN SITU Alberta Oilsands Inc. •

Clearwater West

Application

Phase 1 Pilot Phase 2

Announced

Athabasca Oil Corporation

Announced

Updated: May 2013

Suncor says that engineering design specifications continue in preparation for a sanction decision in 2014 for the MacKay River expansion project.

Updated: Jul 2013

The Alberta government has announced it will cancel several oilsands leases surrounding Fort McMurray in order to allow for community growth, including those associated with Alberta Oilsands’ Clearwater project. Compensation will include lease licence and application fees, wasted exploration and development expenditures, reclamation costs and interest of five per cent. AOI says it has spent approximately $51 million in the acquisition and development of Clearwater.

Updated: Nov 2012

TBD

2021

Phase A3

2006

40,000

30,000

Construction

25,000

MacKay River

Announced

Phase B

Construction

35,000

Phase 2

Application

2018

2014

Cogeneration and Expansion

TBD

2015

30,000

2014

Stage 2

40,000

10,000

Phase A2

5,000

Operating

Phase 1

Phase A1

5,000

2004

Lewis

Announced Updated: May 2013

Phase A2

35,000

MR2

2016

30,000

Phase A1

Stage 1

Debottleneck

10,000

Phase A2

West Ells

In mid-July, Firebag production was reported at approximately 150,000 barrels per day, due to ramp-up of Stage 4. Suncor anticipates the project will reach full design capacity of 180,000 barrels per day early in 2014.

Phase 1

Phase A1

Sunshine says regulatory approval is anticipated in the first half of 2013. The company is completing field work for its environmental analysis, which will support plans for significant commercial expansion.

Operations commenced at the N-Solv pilot in December 2012. Solvent injection and first oil are expected in May 2013. Operations will continue until 2015. Demonstration Plant

Operating Updated: May 2013

Thickwood

STP-McKay

Phase 1 Expansion

TBD

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

Announced

Southern Pacific says production at STP-McKay increased 16 per cent in June over the previous month, averaging 1,187 barrels per day. A single well pair was treated with high-pressure steam stimulation in late May in order to improve communication between injector and producer. This appears to have been successful and Southern Pacific has applied to perform this on the remaining five wells on Pad 101. Phase 1

1,000

Legend Lake

Southern Pacific Resource Corp. •

REGULATORY STATUS

Updated: Mar 2013

Carbonate Pilot

SilverWillow says the design basis memorandum for its 12,000-barrel-per-day project is nearing completion. In the near term, the company says it will continue environmental baseline studies, prepare and submit its regulatory application, and determine requirements for pilot tests to confirm caprock integrity. Pilot

START-UP

Sunshine Oilsands Ltd.

Lewis

Pilot

CAPACITY

4,350

TBD

Application

25,000

2016

Announced

Hangingstone

Updated: Jul 2013

Athabasca Oil Corporation has filed the regulatory application for a phased expansion at Hangingstone to 82,000 barrels per day. Field construction on the 12,000-barrel-per-day first phase is underway.

33,000

2002

Operating

Phase 1

12,000

2014

Construction

5,000

TBD

Construction

Phase 2

40,000

2017

Application

20,000

2016

Application

Phase 3

30,000

2018

Application

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P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

BlackPearl Resources Inc. •

CURRENT PROJECT

START-UP

REGULATORY STATUS

Cenovus Energy Inc.

Blackrod

Updated: Jul 2013

BlackPearl says that a second well pair (to be longer and placed deeper in the reservoir) at the Blackrod pilot was drilled during the first quarter, and steam injection is expected to be in the third quarter. A project team has been assembled and detailed engineering is underway for the 20,000-barrel-per-day first commercial phase, which will cost between $750 million and $800 million. Pilot

800

2011

Christina Lake

Updated: Jul 2013

Cenovus says steam injection at Phase E started in June, with first production achieved in midJuly, and ramp-up to 40,000-barrel-per-day capacity in six to nine months, similar to Phase D. Procurement, plant construction and major equipment fabrication continue for Phase F, which is now about 30 per cent complete. Engineering work continues for Phase G.

Operating

Phase 1A

10,000

2002

Operating

Phase 1B

8,800

2008

Operating

Phase C

40,000

2011

Operating

Phase D

40,000

2012

Operating

Phase 1

20,000

2015

Application

Phase 2

30,000

2018

Application

Phase E

40,000

2013

Operating

Phase 3

30,000

2021

Application

Phase F

50,000

2016

Construction

Phase G

50,000

2017

Approved

Phase H

50,000

2019

Application

Optimization (Phases C, D, E)

22,000

2015

Canadian Natural Resources Limited Gregoire Lake

Updated: Mar 2013

Canadian Natural says Gregoire Lake is in the planning stages.

Phase 1

60,000

TBD

Phase 2

60,000

TBD

Grouse

Announced Announced Updated: Mar 2013

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

50,000

TBD

Kirby North

Foster Creek

Application Updated: Jul 2013

Cenovus says that plant construction for the combined F, G and H expansion is approximately 60 per cent complete. The central plant for Phase F is about 78 per cent complete and first production is expected in the third quarter of 2014. Pipe rack and equipment module assembly are essentially complete for Phase G, and piling work was completed in May. Overall, Phase G is about 56 per cent complete, with initial production expected in 2015. At Phase H, site preparation, piling work and major equipment procurement continue to progress as planned. Phase A

24,000

2001

Operating

6,000

2003

Operating

Phase C Stage 1

10,000

2005

Operating

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 B Debottleneck

Application Updated: May 2013

Canadian Natural says that as of March 31, detailed engineering is 45 per cent complete. Construction of the main access road is complete and site preparation will continue into the third quarter. The project will be submitted for corporate sanction in the third quarter. Phase 1

40,000

2016

Application

Phase 2

60,000

2023

Application

Phase H

40,000

2016

Construction

Updated: May 2013

Phase J

50,000

2019

Application

Future Optimization

15,000

TBD

Kirby South

Canadian Natural says construction of Phase 1 remains ahead of schedule and on budget. Drilling is on track to complete the seventh and final well pad in Q2. Late in the second quarter, the focus will shift from construction to commissioning with first steam now scheduled for Q3, ahead of the original schedule of November 2013. Phase 1

40,000

2013

Construction

Phase 2

20,000

2020

Application

Hoole

Cavalier expects the first phase at Hoole to cost between $450 million and $475 million. The company continues front-end engineering and design work for the first 10,000-barrel-per-day phase at Hoole, along with geotechnical work and drilling additional source water and disposal wells. The company anticipates regulatory approvals by mid-2014 and continues to evaluate funding alternatives. 10,000

2017

Application

Phase 2

35,000

TBD

Announced

Phase 3

35,000

TBD

Announced

Announced Updated: Jul 2013

Pilot

Updated: Jul 2013

Phase 1

Grand Rapids

Cenovus is planning minor facility upgrades at the Grand Rapids pilot in the third quarter, which are expected to help increase production from the two operational well pairs. Regulatory approval for the commercial project is anticipated by the end of 2013.

Cavalier Energy Inc. •

CAPACITY

600

2011

Operating

Phase A

60,000

2017

Application

Phase B

60,000

TBD

Application

Phase C

60,000

TBD

Narrows Lake

Application Updated: Jul 2013

Cenovus says that site preparation, engineering and procurement are progressing as expected. Construction of the Phase A plant is scheduled to start later in the third quarter. Phase A

45,000

2017

Construction

Phase B

45,000

TBD

Approved

Phase C

40,000

TBD

West Kirby

Approved Updated: Aug 2012

Phase 1

30,000

TBD

Announced

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P R O J E C T S TAT U S

CURRENT PROJECT

­

Winefred Lake

­

Phase 1

CAPACITY

REGULATORY STATUS

START-UP

Updated: Aug 2012 30,000

TBD

Announced

CNOOC Limited •

Long Lake

Updated: Jul 2013

CNOOC subsidiary and Long Lake operator Nexen Inc. released its 2012 sustainability report in July. ­

Phase 1

72,000

2008

Operating

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

Grizzly Oil Sands ULC •

Algar Lake

Updated: Jul 2013

Grizzly has begun commissioning the Algar Lake project and expects first production during the third quarter of 2013. Grizzly has announced more details on its inventory of future development, featuring six additional projects including one in bitumen carbonates. ­

Phase 1

5,500

2013

­

Phase 2

5,500

2014

May River

Construction Approved Updated: Jul 2013

­

Phase 2

72,000

TBD

Approved

­

Phase 3

72,000

TBD

Application

­

Phase 4

72,000

TBD

Announced

Grizzly says it has completed a 29-well delineation drilling program. Corporate part-owner Gulfport Energy says the company continues to work towards filing regulatory applications for a 12,000-barrel-per-day SAGD project at May River by the end of 2013.

­

Long Lake South (Kinosis) Phase 1

40,000

TBD

Approved

­

Phase 1

6,800

TBD

Announced

­

Long Lake South (Kinosis) Phase 2

40,000

TBD

Approved

­

Phase 2

6,800

TBD

Announced

Connacher Oil and Gas Limited •

Harvest Operations Corp.

Great Divide

Updated: Jul 2013

Connacher completed its 2013 drilling program in the second quarter, consisting of four infill wells on one pad and four new well pairs on another. Construction of associated surface facilities and tie-ins continues. Steaming of the new well pairs is expected to begin at the end of the third quarter, with conversion to production expected by the end of the fourth quarter. Steaming of the first of the infill wells began in the second quarter, and production is expected from all four by the end of the fourth quarter. The SAGD+ trial (which Connacher says has increased production rates by 30 per cent in the first four months of 2013 compared to the first four months of 2012) is ongoing. The company is also working to reduce the amount of diluent in its dilbit. ­

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: Jul 2013

ConocoPhillips says engineering on Phase 2 is complete and construction is ongoing. Over 3,000 regular employees and contractors are on site. ­

Pilot

1,200

1997

Operating

­ ­

Phase 1

27,000

2007

Operating

Phase 2

109,000

2015

Construction

Devon Canada Corporation ­

Jackfish

Updated: May 2013

Devon says production at Jackfish continues to achieve record rates, averaging 54,000 barrels per day in the first quarter of 2013, an 18 per cent increase over the first quarter of 2012. Construction on Jackfish 3 is approximately 60 per cent complete.

­

BlackGold

Updated: May 2013

Harvest says that construction of the central processing facility is approximately 92 per cent complete and the processing facility construction is approximately 50 per cent complete. ­

Phase 1

10,000

2014

Construction

­

Phase 2

20,000

TBD

Application

Husky Energy Inc. •

McMullen

Updated: Jul 2013

Husky says that during the second quarter, drilling and completions activities for cold production at McMullen continued. Three wells were drilled and eight slant development wells, which were drilled in the first quarter, were put on production. At the air injection pilot, ongoing testing and monitoring of the horizontal production wells continued as planned. Husky has also filed an amendment application to the Alberta Energy Regulator to allow the remaining three horizontal wells to be brought on production later in the year. ­

Air Injection Pilot-Experimental

755

2012

Operating

Japan Canada Oil Sands Limited •

Hangingstone

Updated: Jul 2012

Site clearing and civil work began in February 2013. Drilling of first horizontal well pairs scheduled to commence in August. ­

Expansion

­

Hangingstone Pilot

­

Pilot

20,000

2016

Construction Updated: Dec 2012

11,000

1999

Operating

Koch Exploration Canada Corporation •

Muskwa

Updated: Jul 2013

­

Phase 1

35,000

2007

Operating

The Alberta government has announced it will cancel several oilsands leases surrounding Fort McMurray to enable community growth. Koch is one of the companies that is affected.

­

Phase 2

35,000

2011

Operating

­

­

Phase 3

35,000

2015

Construction

Laricina Energy Ltd.

­

Jackfish East

­

Expansion

20,000

2018

­

Pike

Updated: Sep 2012 Announced Updated: Mar 2013

Pilot

10,000

2015

Germain

Application

Updated: Jul 2013

Steaming has commenced at the Germain SAGD project, with first production expected to follow later in the fall. This is Laricina Energy’s first commercial-scale oilsands installation. ­

Phase 1 CDP

5,000

2013

Construction

­

1A

35,000

2016

Application

­

Phase 2

30,000

2016

Application

­

1B

35,000

2017

Application

­

Phase 3

60,000

TBD

Application

­

1C

35,000

2018

Application

­

Phase 4

60,000

TBD

Application

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

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S E P T E M B E R 2 01 3 | O I L S A N D S R E V I E W . C O M

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P R O J E C T S TAT U S

CURRENT PROJECT

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CAPACITY

START-UP

Saleski

REGULATORY STATUS

Updated: Jul 2013

Laricina has received regulatory approval for the first commercial phase at Saleski, which it says is a critical next step for the industry and the province in the development of the bitumen carbonates, a massive untapped resource. Laricina is also one of the corporations that will be impacted by the Government of Alberta’s recent announcement that it will cancel several oilsands leases surrounding Fort McMurray to enable community development, though this does not impact Saleski or Germain. Experimental Pilot

1,800

2011

Operating

Phase 1

10,700

2015

Approved

Phase 2

30,000

2017

Announced

Phase 3

60,000

2020

Announced

Phase 4

60,000

2023

Announced

Phase 5

60,000

2026

Announced

Phase 6

60,000

TBD

Announced

MEG Energy Corp. Christina Lake

Updated: Apr 2013

MEG achieved record production at Christina Lake in the first quarter of 32,521 barrels per day. Wider deployment of its enhanced modified steam and gas push technology is underway. The company says initial steaming at 2B remains on schedule for Q3, with full plant operations targeted to ramp up in Q4. Phase 1 Pilot

3,000

2008

Operating

Phase 2A

22,000

2009

Operating

Phase 2B

35,000

2013

Construction

Phase 3A

50,000

2016

Approved

Phase 3B

50,000

2018

Approved

Phase 3C

50,000

2020

Surmont

Approved Updated: Apr 2013

MEG says that during Q1, a total of 24 stratigraphic wells, one water source well and three water test wells were completed at Surmont. Phase 1

41,000

2018

Application

Phase 2

41,000

TBD

Application

Phase 3

41,000

TBD

Application

Osum Oil Sands Corp. •

Sepiko Kesik

Updated: Jul 2013

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

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Nomad Hotel & Suites

Clearwater Suite Hotel

Vantage Inn & Suites

Clearwater Residence Hotel – Timberlea

Franklin Suite Hotel Radisson Hotel and Suites

Phase 1

30,000

2018

Application

Phase 2

30,000

2020

Application

Statoil Kai Kos Dehseh

Updated: Jun 2013

Project partner PTT Exploration and Production says the FEED concept design, optimization and bidding process for the up to 40,000-barrel-per-day Leismer expansion has been completed. FEED approval is expected during Q2. Meanwhile, FEED for the Corner project is ongoing. PTT says it is working with Statoil to optimize the design and project investment, which will be completed in Q2/2013 with expected significant cost reduction. 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

Suncor Energy Inc. Chard Phase 1

Updated: Nov 2012

Meadow Creek

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O I L S A N D S R E V I E W | S E P T E M B E R 2 01 3

Announced Updated: Nov 2012

Phase 1

40,000

TBD

Approved

Phase 2

40,000

TBD

Approved


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

Surmont Energy Ltd. Wildwood Phase 1

Updated: Oct 2012 12,000

2015

Application

Value Creation Inc. Advanced TriStar

Updated: Dec 2012

Value Creation has submitted an environmental assessment report for the Advanced TriStar project.

ATS-1

15,000

2016

Application

ATS-2

30,000

2018

Application

ATS-3

30,000

2020

TriStar

Application Updated: Jul 2013

Value Creation is one of several companies to be impacted by the Alberta government’s pending cancellation of oilsands leases around Fort McMurray. Pilot

1,000

2014

Application

COLD LAKE REGION — IN SITU Baytex Energy Corp. Gemini

Updated: May 2013

Baytex says that during the first quarter preliminary work continued on the Gemini SAGD project, including installation of groundwater monitoring wells and facility engineering and design. Construction of the SAGD pilot is expected to begin in the second quarter. Pilot

1,200

TBD

Approved

Commercial

5,000

2016

Approved

Birchwood Resources Inc. Sage

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

Canadian Natural Resources Limited •

Primrose & Wolf Lake

Updated: Jul 2013

The Alberta Energy Regulator has ordered Canadian Natural to restrict steaming, enhance monitoring and accelerate clean-up at Primrose following four releases of bitumen emulsion that reportedly has spread more than 25,000 barrels over four hectares and has resulted in environmental damage including wildlife mortality. Investigation is ongoing, but Canadian Natural does not expect the issue to impact annual production volumes. Primrose East

32,000

2008

Operating

Primrose North

30,000

2006

Operating

Primrose South

45,000

1985

Operating

Wolf Lake

13,000

1985

Operating

Devon Canada Corporation 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. Phase 1

9,000

2017

10,000

TBD

Application

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Husky Energy Inc. Caribou Demonstration

Updated: Nov 2010

Tucker

Approved Updated: Jun 2013

The AER’s bitumen production reports are showing Tucker production exceeding a monthly average of 10,000 barrels per day for the first time in March 2013. Phase 1

30,000

2006

Operating

Imperial Oil Limited Cold Lake

Updated: Apr 2013

Imperial says that at the end of Q1/2013, the Nabiye expansion project was 42 per cent complete. Phase 1-10

110,000

1985

Operating

Phase 11-13

30,000

2002

Operating

Phase 14-16

40,000

2014

Construction

Osum Oil Sands Corp. •

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

2015

Approved

Phase 2

22,000

2017

Approved

S E P T E M B E R 2 01 3 | O I L S A N D S R E V I E W . C O M

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P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

Pengrowth Energy Corporation Updated: May 2013

Pengrowth’s management has sanctioned the first 12,500-barrel-per-day commercial phase at Lindbergh, based on positive pilot results in 2012. Subject to environmental approval (expected this summer), construction is expected to begin.The company says operations at the pilot project continue to show strong results. 1,200

2012

Operating

Phase 1

12,500

2015

Approved

Phase 2

17,500

2017

Announced

Phase 3

20,000

2018

Announced

Royal Dutch Shell plc Orion

Updated: May 2013

Shell had previously put its Orion asset up for sale, 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

PEACE RIVER REGION — IN SITU Sawn Lake

Updated: May 2013

Andora Energy majority owner Pan Orient Energy says activities are currently underway for the drilling of the SAGD well pair in the third quarter and start-up of steam operations in the fourth quarter of 2013. The company says $2.2 million was spent in the first quarter of 2013 on design and engineering, site preparation and equipment purchases. 1,400

2014

Approved

Baytex Energy Corp. Cliffdale

Updated: May 2013

Baytex says that successful operations continued at its 10-well Cliffdale CSS module in the first quarter, with bitumen production averaging over 500 barrels per day with a cumulative steam to oil ratio of 2.4:1. In late March, the company received approval for a new 15-well CSS module. Facility construction is underway and drilling operations are expected to commence mid-year. Pilot

Pilot

REGULATORY STATUS

START-UP

Updated: Feb 2013 TBD

2011

TBD

TBD

Operating

Murphy Oil Company Ltd. Cadotte

Updated: Nov 2012

Pilot Seal/Cadotte Pilot

On Hold Updated: Nov 2012

TBD

TBD

Operating

Northern Alberta Oil Ltd. Sawn Lake

Updated: Dec 2012

Company owner Deep Well Oil & Gas says WorleyParsons has launched preliminary engineering work on the Sawn Lake pilot project. The work will include a pilot plan, process flow diagrams, material balances for hydrocarbons, sulphur and water, description of the capacity and content of emissions. Pilot

700

TBD

Approved

Penn West Petroleum Ltd. Harmon Valley South

Updated: May 2013

Penn West says it continues to progress its three-well thermal pilot at Harmon Valley South, which is expected to commence steam injection in the second half of 2013.

Andora Energy Corporation

Demonstration

CAPACITY

Harmon Valley

Lindbergh

Pilot

CURRENT PROJECT

2,000

2010

Operating

Pilot

TBD

TBD

Seal Main Pilot Commercial

Construction Updated: Mar 2013

75

2011

Operating

10,000

2015

Application

Petrobank Energy and Resources Ltd. Dawson

Updated: May 2013

Petrobank commenced cold production operations from both horizontal THAI production wells in late 2012 and says the wells produced at a combined rate of approximately 20 barrels per day in the first quarter of 2013. These wells are helping to pre-condition the well for THAI operations. Experimental THAI Demonstration

10,000

TBD

Approved

Phase 2

10,000

TBD

Announced

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O I L S A N D S R E V I E W | S E P T E M B E R 2 01 3


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

Royal Dutch Shell plc

CURRENT PROJECT

Updated: May 2013

Shell has received regulatory approval for the Carmon Creek project, for which it applied more than three years ago. A final investment decision could come this year. Cadotte Lake

12,500

1986

Operating

Carmon Creek - Phase 1

40,000

2015

Approved

Carmon Creek - Phase 2

40,000

2018

Horizon

Red Earth

Phase 1

Approved

Updated: Apr 2013

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

1,000

2009

On Hold

Pilot Expansion

3,000

TBD

Announced

10,000

TBD

Announced

Commercial

SASKATCHEWAN REGION — IN SITU

Updated: May 2013

Canadian Natural says during the first quarter the Horizon project achieved strong, reliable production volumes, reflecting a steady, sustained increase in reliability over the last year as the company focuses on enhanced maintenance strategy and operational discipline. Overall, the Phase 2/3 expansion is 20 per cent complete.

Southern Pacific Resource Corp.

2009

Operating

Tranche 2

5,000

TBD

Operating

Phase 2A

10,000

2015

Construction

Phase 2B

45,000

2016

Construction

Phase 3

80,000

2017

Axe Lake

Updated: Dec 2012

Cenovus Energy acquired the Axe Lake project in fall 2012. The company has not yet announced plans for the asset, stating only that it is a good “bolt-on” addition to the emerging Telephone Lake project, which is adjacent. 30,000

TBD

On Hold

NORTH ATHABASCA REGION — UPGRADER BP p.l.c. Terre de Grace

Updated: Mar 2013

BP says that ongoing appraisal activities include delineation drilling, seismic acquisition and appraisal of water sources. 8,400

TBD

Approved

114,000

Construction

Ivanhoe Energy Inc. •

Tamarack

Updated: Jul 2013

Ivanhoe Energy has received a letter of non-objection from the Mikisew Cree First Nation regarding the Tamarack project. The company says it has now successfully secured letters of non-objection from five of the seven stakeholders that filed statements of concern and continues efforts to resolve the final two statements of concern. Phase 1

Cenovus Energy Inc.

Pilot

REGULATORY STATUS

START-UP

Canadian Natural Resources Limited

Peace River

Commercial

CAPACITY

34,784

2016

Application

Suncor Energy Inc. Base Operations

Updated: Jun 2013

Suncor reported it had reduced its production in June as a result of the precautionary shutdown of Enbridge pipelines in the Fort McMurray region due to flooding. However, Suncor does not anticipate that the reduction will impact its ability to meet its annual production guidance. U1 and U2

225,000

1967

Operating

Millennium Vacuum Unit

35,000

2005

Operating

Millennium Coker Unit

97,000

2008

Voyageur Upgrader 3

Operating Updated: Mar 2013

Suncor has announced it will not proceed with the Voyageur Upgrader. Total is no longer a partner on the project. Phase 1

127,000

2016

Cancelled

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www.envirofuel.ca S E P T E M B E R 2 01 3 | O I L S A N D S R E V I E W . C O M

63


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

Voyageur Upgrader 3 continued Phase 2

REGULATORY STATUS

Updated: Mar 2013 63,000

TBD

Cancelled

Syncrude Canada Ltd. Mildred Lake/Aurora

Base Plant Stage 1 & 2 Debottleneck

250,000

1978

Operating

Stage 3 Expansion (UE-1)

100,000

2006

Operating

75,000

TBD

Announced

SOUTH ATHABASCA REGION — UPGRADER CNOOC Limited •

Long Lake

Updated: Jul 2013

CNOOC subsidiary and Long Lake operator Nexen Inc. released its 2012 sustainability report in July. Phase 1

58,500

2008

Operating

Phase 2

58,500

TBD

Approved

Phase 3

58,500

TBD

Application

Phase 4

58,500

TBD

Announced

Value Creation Inc. Advanced TriStar

Updated: Dec 2012

Value Creation has submitted an environmental assessment report for the Advanced TriStar project. ATS-1

12,750

2016

Application

ATS-2

25,500

2018

Application

ATS-3

25,500

2020

Application

CAPACITY

START-UP

TriStar

REGULATORY STATUS

Updated: Jul 2013

Value Creation is one of several companies to be impacted by the Alberta government’s pending cancellation of oilsands leases around Fort McMurray. Pilot

Updated: May 2013

Canadian Oil Sands Limited says Syncrude experienced several unplanned outages during the first quarter of 2013, but progress has been made in the operations area, with the facility experiencing optimal 36-month run lengths for two of its three cokers.

Stage 3 Debottleneck

CURRENT PROJECT

840

2014

Application

INDUSTRIAL HEARTLAND REGION — UPGRADER North West Upgrading Inc. •

Redwater Upgrader

Updated: Jul 2013

The North West Redwater Partnership says that while the owner and EPC teams continue with design and major equipment procurement activities, contractors are active on civil site preparation. Foundation preparation work has commenced for a reactor vessel assembly building, which, starting in summer 2013, will be utilized for final assembly of very heavy vessels segments that will be received at site in early 2014. Following sufficient site grading, work will commence on deep undergrounds. Foundation work for process equipment will commence later in 2013. Phase 1

50,000

2016

Construction

Phase 2

50,000

TBD

Approved

Phase 3

50,000

TBD

Approved

Shell Albian Sands Scotford Upgrader 1

Updated: May 2013

Minority partner Marathon Oil Corporation says upgrader availability was 100 per cent during the first quarter of 2013, allowing the facility to maximize production of lighter synthetic crudes. This improved realizations and profit margins. 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

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