Oilsands Review Project Status June 2014

Page 1

P R O J E C T S TAT U S

06 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

CURRENT PROJECT

navigator.oilsandsreview.com

CAPACITY

START-UP

Suncor Energy Inc. Base Operations

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

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

294,000

1967

Operating

4,000

2007

Operating

Millennium Debottlenecking

23,000

2008

Operating

North Steepbank Extension

180,000

2012

Steepbank Debottleneck Phase 3 NORTH ATHABASCA REGION

SASKATCHEWAN REGION

SOUTH ATHABASCA REGION

INDUSTRIAL HEARTLAND REGION

COLD LAKE REGION

NEW EXPORT PIPELINES

PEACE RIVER REGION

NEW INFORMATION THIS MONTH

Fort Hills

CURRENT PROJECT

CAPACITY

START-UP

Suncor says that project activities in 2014 are expected to focus on the completion of detailed engineering, procurement across all areas of the project, and construction of mine and extraction infrastructure including pilings and foundations. Phase 1

160,000

2017

20,000

TBD

Voyageur South Phase 1

Horizon

Updated: Mar 2014

Canadian Natural says that Horizon achieved strong and reliable operating performance for all of 2013. The 2013 fourth-quarter production volumes of 112,273 barrels per day represent a 35 per cent increase from 2012 fourth-quarter levels, which the company says indicates a step-change in safe, steady and reliable production. The overall Phase 2/3 expansion is 34 per cent physically complete, and projects under construction continue to trend at or below cost estimates.

Phase 2A

Approved Updated: May 2012

120,000

TBD

Application

Syncrude Canada Ltd.

Canadian Natural Resources Limited

Reliability - Tranche 2

Construction

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

NORTH ATHABASCA REGION — MINING

Phase 1

Operating Updated: Feb 2014

Debottleneck REGULATORY STATUS

REGULATORY STATUS

Mildred Lake/Aurora

Updated: Apr 2014

Canadian Oil Sands Limited says that Syncrude Canada Ltd. has begun unplanned maintenance work on Coker 8-1 and it expects the work will overlap the turnaround of Coker 8-2 scheduled for the second quarter. Alberta has issued the final terms of reference for Syncrude’s MLX project. Base Mine Stage 1 & 2 Expansion

290,700

1978

Operating

Stage 3 Expansion

116,300

2006

Operating

TBD

Construction

135,000

2008

Operating

Centrifuge Tailings Management

5,000

2014

Construction

Aurora South Train 1

100,000

2016

Approved

12,000

2015

Construction

Aurora South Train 2

100,000

2018

Approved

TBD

2023

Announced

Phase 2B

45,000

2016

Construction

Phase 3

80,000

2017

Construction

Imperial Oil Limited Kearl

Updated: Feb 2014

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 percent complete at year-end and remains on target for a 2015 start-up. Phase 1

110,000

2013

Operating

Phase 2

110,000

2015

Construction

Phase 3

80,000

2020

Approved

Phase 4 Debottleneck

45,000

TBD

Approved

Shell Albian Sands

Mildred Lake Mine Extension (MLX) Teck Resources Limited Frontier

Updated: Dec 2013

Phase 1A

100,000

2010

Operating

Phase 1B

100,000

TBD

Approved

Expansion

100,000

2017

Approved

Muskeg River

Updated: Mar 2014

Minority partner Marathon Oil Corporation says its income from the Athabasca Oil Sands Project was significantly lower in the fourth quarter of 2013 compared to the third quarter of 2013, primarily as a result of lower price realizations. Commercial

155,000

2002

Expansion & Debottlenecking

115,000

TBD

Pierre River

Operating Approved 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.

Updated: Feb 2014

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 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 1

74,600

2021

Application

Phase 2

84,000

2024

Application

Phase 3

79,300

2027

Application

Phase 4 Equinox

39,400

2030

Application

Total E&P Canada Ltd. •

Joslyn North Mine

Updated: Apr 2014

A project amendment has been filed with the Alberta Energy Regulator and Alberta Environment to increase production to 157,000 barrels per day. Phase 1

Jackpine

TBD

100,000

2019

Approved

NORTH ATHABASCA REGION — IN SITU Athabasca Oil Corporation Birch

Updated: Mar 2014

Athabasca will be reducing its workforce by 15 per cent. The layoffs, focused primarily in its Calgary office, will largely affect employees directly or indirectly tied to projects that are not being funded in the near term. 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. Phase 1 Demonstration

6,000

2016

Phase 2 Demonstration

6,000

TBD

Dover West Sands & Clastics

Approved Application Updated: Nov 2013

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

Phase 1

100,000

TBD

On Hold

Phase 1

12,000

2016

Application

Phase 2

100,000

TBD

On Hold

Phase 2

35,000

2019

Announced

JUNE 2014 | OILSANDSREVIEW.COM

49


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

Dover West Sands & Clastics (continued)

REGULATORY STATUS

Updated: Nov 2013

Phase 3

35,000

2020

Announced

Phase 4

35,000

2022

Announced

Phase 5

35,000

2024

Announced

BP p.l.c. •

Terre de Grace

Updated: Apr 2014

BP says that ongoing appraisal activities continue. Pilot

10,000

TBD

Approved

Brion Energy Corporation •

CURRENT PROJECT

CAPACITY

START-UP

Grizzly Oil Sands ULC Thickwood

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. Phase 1

6,000

2017

Application

Phase 2

6,000

TBD

Application

Husky Energy Inc. Saleski

Dover

Updated: Apr 2014

Athabasca Oil Corporation has exercised its option to divest its 40 per cent interest in the Dover Commercial Project to PetroChina’s Phoenix Energy Holdings Limited for approximately $1.23 billion. This transaction transfers ownership of the project to Phoenix subsidiary Brion Energy Corporation. Dover Experimental Pilot

REGULATORY STATUS

Updated: May 2013

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

3,000

2017

Sunrise

Application Updated: Feb 2014

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

2,000

2017

Approved

Dover North Phase 1

50,000

2016

Approved

Dover North Phase 2

50,000

2018

Approved

Phase 1

60,000

2014

Construction

Dover South Phase 3

50,000

2021

Approved

Phase 2A

70,000

2018

Approved

Dover South Phase 4

50,000

2023

Approved

Phase 2B

70,000

2020

Approved

Dover South Phase 5

50,000

2025

Approved

Phase 1

35,000

2015

Construction

Phase 2

40,000

2018

Approved

Phase 3

40,000

2020

Approved

Phase 4

35,000

2022

Approved

MacKay River

Updated: Oct 2013

Canadian Natural Resources Limited Birch Mountain

Updated: Dec 2013

Phase 1

60,000

2019

Announced

Phase 2

60,000

2023

Announced

Cenovus Energy Inc. East McMurray

Updated: Dec 2013

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

Telephone Lake

Announced Updated: Feb 2014

Cenovus says a dewatering pilot project designed to remove an underground layer of non-potable 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 A Phase B

45,000 45,000

TBD TBD

Application Application

E-T Energy Ltd. Poplar Creek

Updated: Feb 2014

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. Experimental Pilot

Aspen

Updated: Feb 2014

Alberta has issued the final terms of reference for Imperial’s Aspen project. Phase 1

45,000

2020

Application

Phase 2

45,000

TBD

Application

Phase 3

45,000

TBD

Application

Ivanhoe Energy Inc. Tamarack

Canadian Natural says Birch is in the planning stages.

Phase 1

Imperial Oil Limited

1,000

2012

Suspended

Phase 1

10,000

TBD

Announced

Phase 2

40,000

TBD

Announced

Updated: Mar 2014

Ivanhoe Energy says that it has suspended activity on the Tamarack project based on the uncertainty that there is no timeline defined by the Alberta Energy Regulator for a new regulatory framework for shallow SAGD projects, and that there is no clarity as to a path for approval for its Tamarack application. Until there is greater regulatory certainty as to a path to approval, Ivanhoe will limit Tamarack spending to only essential items. Phase 1

20,000

2017

Application

Phase 2

20,000

TBD

Application

Koch Exploration Canada Corporation 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. Phase 1

30,000

2018

Announced

Phase 2

30,000

TBD

Announced

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

Oak Point Energy Ltd. Lewis

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. Pilot

1,720

TBD

Approved

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

Rigel

START-UP

Harper

Updated: Dec 2013

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

REGULATORY STATUS

10,000

2017

Application

Updated: Apr 2014

Alberta’s enactment of the Lower Athabasca Regional Plan in 2013 created new conservation areas that impacted the Harper project. Sunshine received compensation from the government in December 2013.

SilverWillow Energy Corporation

Carbonate Pilot

Audet

Updated: Mar 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. SilverWillow Audet is one of five impacted projects. SilverWillow has announced a strategic review process to enhance shareholder value. Pilot

CAPACITY

Sunshine Oilsands Ltd.

Prosper Petroleum Ltd.

Phase 1

CURRENT PROJECT

12,000

2018

Application Updated: Mar 2014

Southern Pacific says early results indicate inflow control devices on wells at its STP-McKay thermal project have the potential to generate meaningful improvements in production and steam to oil ratios. One well pair has seen an 87 per cent production increase and significant drop in steam to oil ratio since the device was installed.

TBD

Suspended Updated: Dec 2013

Sunshine is completing field work for its environmental analysis, which will support work for significant commercial expansion.

Southern Pacific Resource Corp. STP-McKay

1,000

Legend Lake

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

12,000

2012

Operating

Phase A2

30,000

2017

Announced

6,000

2016

Application

Phase B

30,000

2021

Phase 2A

12,000

2018

Application

Phase 2B

6,000

2018

Application

Phase 1 Phase 1 Expansion

Suncor Energy Inc. Dover

Updated: Apr 2014

N-Solv says propane or butane injection on the solvent-only production pilot was expected to begin in the first quarter of 2014. Operations will continue until 2015. Demonstration Plant

500

2013

Firebag

Operating Updated: Feb 2014

Suncor says that production at the Firebag complex had 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.

West Ells

Announced Updated: Apr 2014

Sunshine Oilsands Ltd. says its priority for the second quarter of 2014 is to secure financing to restart construction of its first 10,000-barrel-per-day commercial SAGD project at West Ells. The company is examining financing alternatives with help from its financial advisers. Phase A1

5,000

2015

On Hold

Phase A2

5,000

TBD

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

SOUTH ATHABASCA REGION — IN SITU Athabasca Oil Corporation

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

Phase 1

12,000

2015

Construction

Stage 4

42,500

2012

Operating

Phase 2

40,000

2017

Application

Stage 5

62,500

2018

Approved

Phase 3

30,000

2018

Application

Stage 6

62,500

2019

Approved

Stage 3-6 Debottleneck

23,000

TBD

Lewis

Application Updated: Aug 2013

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.

Hangingstone

Updated: Mar 2014

Athabasca says that construction at Hangingstone was 59 per cent complete at year-end 2013. First steam is now expected in the first quarter of 2015, one quarter later than previously scheduled.

BlackPearl Resources Inc. Blackrod

Updated: Mar 2014

BlackPearl says that it has been steaming the second pilot well pair since November with expectations to convert this well pair to SAGD operation in March. The company is testing a commercial well design after incorporating learning’s from the first pilot well pair.

Phase 1

40,000

TBD

Announced

Pilot

800

2011

Operating

Phase 2

40,000

TBD

Announced

Phase 1

20,000

2015

Application

Updated: Feb 2014

Phase 2

30,000

2018

Application

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.

Phase 3

30,000

2021

Application

MacKay River

Phase 1 Debottleneck MR2

Canadian Natural Resources Limited Gregoire Lake

Updated: Dec 2013

Canadian Natural says Gregoire Lake is in the planning stages.

33,000

2002

Operating

5,000

2015

Construction

Phase 1

60,000

TBD

Announced

20,000

2017

Application

Phase 2

60,000

TBD

Announced

Sprung Structures

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Calgary, Alberta

www.sprung.com/oilgas

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JUNE 2014 | OILSANDSREVIEW.COM

51


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

Grouse

REGULATORY STATUS

CURRENT PROJECT

REGULATORY STATUS

START-UP

Narrows Lake

Updated: Dec 2013

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

CAPACITY

Updated: Feb 2014

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.

Application

Phase A

45,000

2017

Construction

Updated: Mar 2014

Phase B

45,000

TBD

Approved

Canadian Natural says that at the end of the fourth quarter of 2013, steam was being circulated in 36 well pairs on 6 pads to initiate the SAGD process at Kirby South. Subsequent to the fourth quarter of 2013, 15 well pairs have been converted to SAGD production as planned. The wells at Kirby South are responding 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 was delivered during the fourth quarter of 2013, with production averaging 1,500 barrels per day for the quarter. Production ramp-up continues as expected, with current production of approximately 7,000 barrels per day. Canadian Natural says corporate sanction for Kirby North Phase 1 is anticipated in mid-2014, and engineering is approximately 97 per cent complete.

Phase C

40,000

TBD

Commercial

50,000

2018

Kirby

West Kirby

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

Phase 1

TBD

Phase 1

72,000

2008

Operating

Kinosis (K1A)

40,000

TBD

Construction

Kinosis (K1B)

40,000

TBD

Approved

KN1 - Kirby North

40,000

2016

Approved

Long Lake

KN2 - Kirby North

60,000

2022

Application

Cavalier Energy Inc. Updated: Mar 2014

10,000

2017

Application

35,000

TBD

Announced

Phase 3

35,000

TBD

Announced

Christina Lake

Phase 1A Phase 1B

10,000

2002

Operating

8,800

2008

Operating

Phase C

40,000

2011

Operating

Phase D

40,000

2012

Operating

Phase E

40,000

2013

Operating

Optimization (Phases C,D,E)

22,000

2015

Phase F

50,000

Phase G Phase H

Great Divide

Updated: Apr 2014

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: Apr 2014

ConocoPhillips says over the next few years it plans to execute a disciplined capital program of approximately $16 billion per year, generating 3–5 per cent compound annual production growth and margin growth from major development programs and projects already underway, including in the oilsands. 1,200

1997

Operating

Phase 1

27,000

2007

Operating

Approved

Phase 2

109,000

2015

Construction

2016

Construction

Phase 3 - Tranche 1

45,000

2020

Announced

50,000

2017

Approved

Phase 3 - Tranche 2

45,000

TBD

Announced

50,000

2019

Application

Phase 3 - Tranche 3

45,000

TBD

Announced

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

Updated: Nov 2013

Connacher says that Great Divide production for the first quarter averaged 13,400 barrels per day, an 18 per cent increase over the prior quarter. Drilling has been completed on six of nine planned infill wells; the remaining three will be drilled during the second quarter. These wells are expected to begin impacting production in the fourth quarter.

Updated: Feb 2014

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.

Announced

Connacher Oil and Gas Limited

Cenovus Energy Inc.

Pilot

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

Phase 3

35,000

2014

24,000

2001

Operating

6,000

2003

Operating

Jackfish East

Phase C Stage 1

10,000

2005

Operating

Expansion

Phase C Stage 2

20,000

2007

Operating

Pike

Phase D

30,000

2009

Operating

Phase E

30,000

2009

Operating

1A

35,000

2016

Application

Phase F

45,000

2014

Construction

1B

35,000

2017

Application

Phase G

40,000

2015

Construction

1C

35,000

2018

Application

Phase H

40,000

2016

Construction

Grizzly Oil Sands ULC

Phase J

50,000

2019

Application

Future Optimization

15,000

TBD

Announced

Grizzly Oil Sands part owner Gulfport Energy Corporaiton says first production at Algar Lake was achieved during the first quarter of 2014. Grizzly currently has seven of the ten well pairs on full steam circulation and expects to have all ten well pairs on full circulation shortly.

Phase B Debottleneck

Grand Rapids

Updated: Mar 2014

Cenovus has received regulatory approval for the full commercial Grand Rapids project. The company expects to make a decision on the timing of development later this year. Once a decision is made to proceed with Grand Rapids, Cenovus says it will be able to rely on existing infrastructure, including roads, power and camps at its Pelican Lake conventional heavy oil operation. Pilot

52

30,000

Operating

Phase 2

Announced Updated: Dec 2013

CNOOC Limited

2013

Phase 1

TBD

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

40,000

Cavalier owner Paramount Resources says the company anticipates that regulatory approvals for the initial 10,000-barrel-per-day phase of its Hoole project will be received by mid-2014. Frontend engineering and design work was completed in 2013.

30,000

Winefred Lake

KS1 - Kirby South

Hoole

Approved Updated: Dec 2013

Construction Updated: Sep 2012

20,000

2018

Announced Updated: Mar 2013

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

Algar Lake

Updated: Apr 2014

Phase 1

5,500

2014

Phase 2

5,500

TBD

May River

Operating Approved Updated: Mar 2014

Grizzly corporate part owner Gulfport Energy says that in the fourth quarter of 2013, the company submitted an initial 12,000-barrel-per-day SAGD development application with the regulatory authorities covering the eastern portion of the May River lease.

600

2011

Operating

Phase A

60,000

2017

Approved

Phase B

60,000

TBD

Approved

Phase 1

6,000

2016

Application

Phase C

60,000

TBD

Approved

Phase 2

6,000

TBD

Application

OILSANDS REVIEW | JUNE 2014


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

REGULATORY STATUS

START-UP

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

OSUM Oil Sands Corp.

Harvest Operations Corp. BlackGold

Sepiko Kesik

Updated: Mar 2014

Harvest says that due to extreme winter conditions, the project scaled back construction activities during the first quarter of 2014. The company anticipates resuming full construction activities in the second quarter of 2014 and has revised the project schedule accordingly. Harvest anticipates construction completion of the central processing facility in the second half of 2014, with first steam expected in the fourth quarter of 2014. Regulatory approval for Phase 2 was received in December 2013.

Updated: Jul 2013

OSUM says it anticipates regulatory approval for Sepiko Kesik in 2014, requiring financing in 2015-16. Phase 1

30,000

2018

Application

Phase 2

30,000

2020

Application

Statoil Canada Ltd.

Phase 1

10,000

2014

Construction

Phase 2

20,000

TBD

Approved

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. Statoil says it will incorporate 14 new technologies at its oilsands operations in the coming years to provide step-changing operations improvement.

Husky Energy Inc. McMullen

Updated: Feb 2014

Husky says that CHOPS production from 27 wells located on three well pads commenced during the fourth quarter of 2013, and at the air injection pilot three additional horizontal production wells were placed on production. Thermal Conduction Pilot

755

2012

Operating

Japan Canada Oil Sands Limited Hangingstone

Updated: Feb 2014

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

20,000

2016

Hangingstone Pilot Pilot

Construction Updated: Dec 2012

11,000

1999

Operating

Koch Exploration Canada Corporation Updated: Sep 2013 10,000

2015

Germain

2010

Operating

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: Mar 2014

5,000

2013

Operating

Phase 2

30,000

2018

Application

Phase 3

60,000

TBD

Application

Phase 4

60,000

TBD

Saleski

Updated: Nov 2012

Application

1,800

2011

Operating

Phase 1

10,700

2016

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: Feb 2014

MEG says that Phase 2B achieved first production in the fourth quarter of 2013. 3,000

2008

Operating

Phase 2A

22,000

2009

Operating

Phase 2B

35,000

2013

Operating

Phase 3A

50,000

2016

Construction

Phase 3B

50,000

2018

Phase 3C

50,000

2020

Surmont

Approved Approved Updated: Oct 2013

Announced Updated: Nov 2012

Phase 1

40,000

TBD

Approved

Phase 2

40,000

TBD

Approved

12,000

2015

Surmont Energy Ltd. Wildwood Phase 1

Updated: Oct 2012 Application

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.

Updated: Mar 2014

Laricina says the pilot continues to provide a roadmap for Saleski Phase 1. Recently the company drilled a 700-metre sidetrack well in the Grosmont C zone that is currently in the first simultaneous steam injection and production cycle in the two Grosmont C zone wells testing block steaming and production. In the Grosmont D zone, an application was approved to drill a new well intended to progress the recovery process and optimize production.

Phase 1 Pilot

10,000

Corner

Meadow Creek

Laricina says it continues start-up operations as select wells are converted from steam to production. Operations and facilities have normalized after a third-party pipeline break in fall 2013 resulted in a stoppage in steaming and start-up, followed by a plant upset. As a result of the interruptions, the benefit of the steam previously injected to heat the reservoir was mostly lost, delaying ramp-up. The reservoir is once again responding as expected, and bitumen production is starting to ramp-up from the initial wells.

Experimental Pilot

Leismer Demonstration

Chard

Application

Laricina Energy Ltd.

Phase 1 CDP

Updated: Apr 2014

Suncor Energy Inc.

Muskwa Pilot

Kai Kos Dehseh

ATS-1

15,000

2016

Application

ATS-2

30,000

2018

Application

ATS-3

30,000

2020

TriStar

Application Updated: Feb 2014

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

1,000

TBD

Approved

COLD LAKE REGION — IN SITU Baytex Energy Corp. Gemini

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

Operating

Commercial

5,000

2017

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: Apr 2014

The Alberta Energy Regulator (AER) has approved Canadian Natural’s application to modify steaming at phases 23 and 24 of its Primrose and Wolf Lake operations after bitumen was released to surface in other areas of the Primrose site. The steaming restrictions imposed by the AER in 2013 remain in place. Wolf Lake

13,000

1985

Operating

Phase 1

41,000

TBD

Application

Primrose South

45,000

1985

Operating

Phase 2

41,000

TBD

Application

Primrose North

30,000

2006

Operating

Phase 3

41,000

TBD

Application

Primrose East

32,000

2008

Operating

JUNE 2014 | OILSANDSREVIEW.COM

53


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

CURRENT PROJECT

Devon Canada Corporation Updated: Mar 2014

Devon says the Walleye project is currently on hold. 9,000

2017

Application

Husky Energy Inc. Caribou Demonstration

10,000

TBD

Approved

2006

Imperial Oil Limited Cold Lake

Updated: Feb 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 was expected in 2013. Financing is required. Phase 1

23,000

2016

Approved

Phase 2

22,000

2018

Approved

Application

Phase 3

20,000

2018

Announced

Updated: May 2013

Phase 1

10,000

2007

Operating

Phase 2

10,000

TBD

Approved

PEACE RIVER REGION — IN SITU Andora Energy Corporation •

Sawn Lake

Updated: Apr 2014

Andora majority owner Pan Orient Energy says that final construction of the SAGD facility is currently being completed and steam injection is scheduled for April 2014. After three months of steam injection, bitumen production is anticipated at approximately the end of July 2014. Demonstration

1,400

2014

2,000

2011

Construction

Cliffdale

Updated: Feb 2014

Pilot Harmon Valley Pilot

Operating Updated: Feb 2013

TBD

2011

TBD

TBD

Operating

Murphy Oil Company Ltd.

Pengrowth Energy Corporation Lindbergh

Updated: Mar 2014

Alberta has issued the final terms of reference for Pengrowth’s Lindbergh expansion project The company says the pilot continues to perform exceptionally well, with production volumes from the two well pairs at Feb. 1, 2014, at approximately 1,900 barrels per day, with an instantaneous steam to oil ratio of approximately two. Construction of Lindbergh’s first commercial phase remains on schedule and on budget, with 65 percent of the capital committed or spent as at March 3, 2014.

Phase 1

2017

Baytex Energy Corp.

OSUM Oil Sands Corp.

Pilot

17,500

Orion

Operating

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.

Updated: Mar 2014

Phase 2

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.

Updated: Jun 2013 30,000

REGULATORY STATUS

Royal Dutch Shell plc

Updated: Nov 2010

Tucker Phase 1

START-UP

Lindbergh (continued)

Walleye Phase 1

CAPACITY

1,260

2012

Operating

11,240

2015

Construction

RELATIONSHIPS MATTER IN RESPONSIBLE DEVELOPMENT At Nexen, a wholly owned subsidiary of CNOOC Ltd., we have worked to embed engagement with stakeholders and indigenous peoples into the full life-cycle of our activities from exploration through to abandonment and reclamation, which is key to our commitment to engaging with integrity.

Cadotte

Updated: Nov 2012

Pilot 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

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54

OILSANDS REVIEW | JUNE 2014


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

CURRENT PROJECT

Northern Alberta Oil Ltd.

CAPACITY

START-UP

Peace River (continued)

Updated: Dec 2013

Updated: Apr 2014

Carmon Creek - Phase 1

40,000

2017

Construction

Company owner Deep Well Oil & Gas says final construction of the SAGD facility is currently being completed and steam injection is scheduled for the end of April 2014. Once construction and initial testing is completed, the reservoir will be steamed for approximately three months, after which first bitumen production is anticipated around the end of July 2014.

Carmon Creek - Phase 2

40,000

2018

Approved

Sawn Lake

REGULATORY STATUS

Pilot

700

TBD

Approved

Penn West Petroleum Ltd. Harmon Valley South

Pilot

TBD

TBD

Seal Main

Updated: Dec 2013

Pilot Commercial

75

2011

Operating

10,000

2015

Application

Petrobank Energy and Resources Ltd. Updated: Apr 2014

Petrobank says it commenced CSS steaming operations at one of the two horizontal THAI production wells in late-December 2013 and initiated steaming operations at the second well in mid-February 2014. First production is expected in May 2014. The company is planning a nine-month production cycle followed by a second steam and production cycle. With success of these two CSS wells, Petrobank intends to prepare and submit an application for full field CSS development. Petrobank will merge with Touchstone Exploration Inc. and continue to operate under the latter’s corporate name. Experimental THAI Demonstration

Updated: Apr 2013

Commercial

3,000

TBD

Announced

10,000

TBD

Announced

SASKATCHEWAN REGION — IN SITU Cenovus Energy Inc. 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. Commercial

30,000

TBD

On Hold

NORTH ATHABASCA REGION — UPGRADER BP p.l.c.

Dawson

TBD 10,000

2014

Operating

TBD

Announced

Royal Dutch Shell plc Peace River

Updated: Dec 2013

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

Pilot Expansion

Operating

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.

Phase 2

Red Earth

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

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.

Southern Pacific Resource Corp.

12,500

1986

Operating

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Terre de Grace

Updated: Apr 2014

BP says that ongoing appraisal activities continue. Pilot

8,400

TBD

Approved

Canadian Natural Resources Limited Horizon

Updated: Mar 2014

Canadian Natural says that Horizon achieved strong and reliable operating performance for all of 2013.The 2013 fourth-quarter production volumes of 112,273 barrels per day represent a 35 per cent increase from 2012 fourth-quarter levels, which the company says indicates a step-change in safe, steady and reliable production. The overall Phase 2/3 expansion is 34 per cent physically complete, and projects under construction continue to trend at or below cost estimates. Phase 1 Reliability - Tranche 2 Phase 2A

110,000

2009

Operating

5,000

2014

Construction

12,000

2015

Construction

What signs do you need to keep your facility safe & compliant? Download the Facility Safety Signage Guide at BradyCanada.ca/SignGuide

JUNE 2014 | OILSANDSREVIEW.COM

55


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

Horizon (continued)

REGULATORY STATUS

Updated: Mar 2014

Phase 2B

45,000

2016

Construction

Phase 3

80,000

2017

Construction

Ivanhoe Energy Inc. Tamarack

Phase 1

34,784

2017

Application

Suncor Energy Inc.

CAPACITY

REGULATORY STATUS

START-UP

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.

Updated: Mar 2014

Ivanhoe Energy says that it has suspended activity on the Tamarack project based on the uncertainty that there is no timeline defined by the Alberta Energy Regulator for a new regulatory framework for shallow SAGD projects, and that there is no clarity as to a path for approval for its Tamarack application. Until there is greater regulatory certainty as to a path to approval, Ivanhoe will limit Tamarack spending to only essential items.

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 Tri-Star project but has not yet decided on a construction timeline. Pilot

820

TBD

Approved

INDUSTRIAL HEARTLAND REGION — UPGRADER

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

North West Upgrading Inc. •

Redwater Upgrader

Updated: Apr 2014

North West says construction activities continue, with approximately 600 personnel currently engaged at the site. Contracts are now in place for all major process units. A list of EPC contractors is available at: http://goo.gl/iPYvtq.

225,000

1967

Operating

Phase 1

50,000

2017

Construction

Millennium Vacuum Unit

35,000

2005

Operating

Phase 2

50,000

TBD

Approved

Millennium Coker Unit

97,000

2008

Operating

Phase 3

50,000

TBD

Approved

Shell Albian Sands

Syncrude Canada Ltd. •

CURRENT PROJECT

Mildred Lake/Aurora

Updated: Apr 2014

Canadian Oil Sands Limited says that Syncrude Canada Ltd. has begun unplanned maintenance work on Coker 8-1 and it expects the work will overlap the turnaround of Coker 8-2 scheduled for the second quarter. 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

CNOOC Limited Long Lake

Updated: Nov 2013 58,500

Updated: Mar 2014

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.

SOUTH ATHABASCA REGION — UPGRADER

Phase 1

Scotford Upgrader 1

Minority partner Marathon Oil Corporation says its income from the Athabasca Oil Sands Project was significantly lower in the fourth quarter of 2013 compared to the third quarter of 2013, primarily as a result of lower price realizations.

2009

Operating

Phase 1

46,300

TBD

On Hold

Phase 2

46,300

TBD

Approved

Phase 3

46,300

TBD

Approved

Why should the oil sands

matter to you? Find out at More2theStory.com

56

OILSANDS REVIEW | JUNE 2014


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