OSR Project Status September 2014

Page 1

P R O J E C T S TAT U S

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

NORTH ATHABASCA REGION

SASKATCHEWAN REGION

SOUTH ATHABASCA REGION

INDUSTRIAL HEARTLAND REGION

COLD LAKE REGION

NEW EXPORT PIPELINES

• • NEW INFORMATION THIS MONTH

PEACE RIVER REGION

CAPACITY

START-UP

Muskeg River

Updated: Jun 2014

Minority partner Marathon Oil Corporation says its income from the project increased in the first quarter of 2014 primarily as a result of lower contract services and contract labour and higher turnaround costs in the same quarter of 2013. The impact of higher price realizations in the first quarter of 2014 was mostly offset by lower net sales volumes due to reliability issues at both the Jackpine and Muskeg River mines. Commercial

155,000

2002

Expansion & Debottlenecking

115,000

TBD

Pierre River

APPL Approved UC OP HOLD SUSP CAN

Announced, regulatory application pending Regulatory application has been filed

Phase 1

100,000

TBD

HOLD

Phase 2

100,000

TBD

HOLD

Suncor Energy Inc.

Under construction

Steepbank Debottleneck Phase 3

Operating

Millennium Debottlenecking North Steepbank Extension

On hold; timing uncertain

Debottleneck START-UP

REGULATORY STATUS

Phase 1

Horizon

Updated: Jun 2014

During first quarter of 2014, Horizon continued to achieve strong and reliable OP performance, with synthetic crude oil production averaging approximately 113,000 barrels per day, a four per cent increase from 2013 first-quarter levels and a one per cent increase over 2013 fourth-quarter levels. Production is targeted to increase in 2014 by about 11,000 barrels per day from 2013 levels as a result of the continued focus on effective and efficient operations. The overall Horizon Phase 2/3 expansion is 37 per cent physically complete.

Phase 2B Phase 3

OP

23,000

2008

OP

180,000

2012

OP Updated: Jun 2014

160,000 20,000

2017 TBD

Voyageur South

Canadian Natural Resources Limited

Phase 2A

OP

2007

UC Approved Updated: May 2012

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

NORTH ATHABASCA REGION — MINING

Reliability - Tranche 2

1967

4,000

Suncor says that Fort Hills project activities are currently focused on detailed engineering, procurement and the ramp-up of field construction. Phase 1

Phase 1

294,000

Fort Hills

Project cancelled

CAPACITY

Updated: Jun 2014

Suncor says that it reached a synthetic crude oil production record of 312,200 barrels per day in the first quarter of 2014, which included a 21 per cent increase in sweet production compared to the prior year quarter due to improved upgrader reliability. Millennium Mine

CURRENT PROJECT

Approved

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.

Regulatory approval in place

Operations suspended

OP

Updated: Feb 2014

Base Operations

ANN

REGULATORY STATUS

1978

OP

2006

OP

--

2015

UC

UC

Aurora South Train 1

100,000

2016

Approved

UC

Aurora South Train 2

100,000

2018

Approved

TBD

2023

ANN

2014

UC

80,000

2017

Centrifuge Tailings Management

UC

Mildred Lake Mine Extension (MLX)

Imperial Oil Limited Kearl

Updated: Jun 2014

116,300

5,000

2016

Mildred Lake/Aurora

Canadian Oil Sands Limited says that the cost estimate for the Mildred Lake Mine Train Replacement project has been reduced to $3.9 billion from $4.2 billion, and the project remains on schedule for completion in the fourth quarter of this year. 290,700

OP

45,000

APPL

Stage 3 Expansion

2008

2015

TBD

Base Mine Stage 1 & 2 Expansion

135,000

12,000

120,000

Syncrude Canada Ltd.

Updated: Jun 2014

Imperial says production continues to increase and progress continues towards stabilizing production at the targeted rate of 110,000 barrels per day. Kearl production has been successfully marketed and processed at more than 20 refineries to date. The Kearl expansion project was 81 percent complete at the end of the quarter. The project is tracking ahead of schedule relative to its originally planned late 2015 start-up.

Teck Resources Limited •

Frontier

Updated: Jul 2014

Teck says that the regulatory review process for the Frontier project is expected to continue into 2015, making late 2015 or 2016 the earliest an approval decision and receipt of required permits is expected.

Phase 1

110,000

2013

OP

Phase 1

74,600

2021

APPL

Phase 2

110,000

2015

UC

Phase 2

84,000

2024

APPL

Phase 3

80,000

2020

Approved

Phase 3

79,300

2027

APPL

Phase 4 Debottleneck

45,000

TBD

Approved

Phase 4 Equinox

39,400

2030

APPL

Shell Albian Sands

Total E&P Canada Ltd.

Jackpine

Updated: Dec 2013

Phase 1A

100,000

2010

OP

Phase 1B

100,000

TBD

Approved

Expansion

100,000

2017

Approved

Joslyn North Mine

Updated: Jun 2014

Total has announced it will delay the Joslyn mine while project owners seek ways to reduce costs. Phase 1

100,000

2019

HOLD

SEPTEMBER 2014 | OILSANDSREVIEW.COM

63


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

CURRENT PROJECT

Birch Mountain

Athabasca Oil Corporation Birch

Updated: Mar 2014

12,000

TBD

Dover West Carbonates (Leduc)

ANN

Phase 1 Demonstration

6,000

2016

Phase 2 Demonstration

6,000

TBD

Dover West Sands & Clastics

12,000

2016

APPL

35,000

2019

ANN

Phase 3

35,000

2020

ANN

Phase 4

35,000

2022

ANN

Phase 5

35,000

2024

ANN

Updated: Apr 2014

TBD

Approved

Dover

Phase 1

TBD

2,000

2017

Approved

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

Dover South Phase 5

50,000

2025

MacKay River

Approved

30,000

TBD

ANN Updated: Feb 2014

Cenovus says a 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 A

45,000

TBD

APPL

Phase B

45,000

TBD

APPL

E-T Energy Ltd. Updated: Jun 2014

E-T Energy has engaged Sayer Advisors to dispose of its oilsands leases. The company is refocusing both its time and capital on the development of its technology. Experimental Pilot

2012

CAN

Phase 1

10,000

1,000

TBD

HOLD

Phase 2

40,000

TBD

HOLD

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

APPL

Phase 2

6,000

TBD

APPL

Husky Energy Inc. Saleski

Updated: Jun 2014

Brion says that the module fabrication program is underway for the central processing facility, with some of the largest pieces of equipment arriving at site for assembly. Modules are nearing completion across Alberta and the United States. The structural steel and pipe for the project has been shipped from Texas and China, and many of the concrete foundations have already been poured. Well pads and pipelines are under construction, the pipe road crossings are nearly complete, and the infield right-of-way has been piled. Brion is planning to hydro test much of the infield pipelines this summer.

ANN Updated: Dec 2013

Telephone Lake

Updated: Jul 2014

Concerns have been reported about the likelihood that Brion joint venture owner PetroChina will pay partner Athabasca Oil Corporation the $1.32 billion owing following Athabasca exercising its put option in the Dover project earlier this spring. However, Athabasca says that it continues to work with PetroChina subsidiary Phoenix Energy Holdings on the deal and that no changes to the contract are in the works.

64

30,000

Poplar Creek 10,000

Brion Energy Corporation

Dover Experimental Pilot

Updated: Dec 2013

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

BP says that ongoing appraisal activities continue.

ANN

Steepbank

BP p.l.c. Terre de Grace

ANN

2023

Phase 1

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

Phase 2

2019

60,000

East McMurray

Updated: Nov 2013

Phase 1

60,000

Phase 2

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

Approved APPL

Phase 1

Cenovus Energy Inc.

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.

Updated: Dec 2013

Canadian Natural says Birch is in the planning stages.

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.

Pilot

REGULATORY STATUS

START-UP

Canadian Natural Resources Limited

NORTH ATHABASCA REGION — IN SITU

Phase 1

CAPACITY

Updated: May 2013

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

3,000

2017

Sunrise

APPL Updated: Jul 2014

Husky says that Sunrise is progressing towards start-up later this year. The well pads, diluent, diluted bitumen and gathering pipelines are moving through the commissioning phase, and major electrical systems for Plant 1A have been completed and energized. Plant 1A is scheduled to be brought online first, followed by Plant 1B approximately six months afterwards.

Phase 1

35,000

2015

UC

Phase 2

40,000

2018

Approved

Phase 1

60,000

2014

UC

Phase 3

40,000

2020

Approved

Phase 2A

70,000

2018

Approved

Phase 4

35,000

2022

Approved

Phase 2B

70,000

2020

Approved

OILSANDS REVIEW | SEPTEMBER 2014


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

REGULATORY STATUS

START-UP

CURRENT PROJECT

START-UP

REGULATORY STATUS

Southern Pacific Resource Corp.

Imperial Oil Limited Aspen

STP-McKay

Updated: Feb 2014

Alberta has issued the final terms of reference for Imperial’s Aspen project. 45,000

2020

APPL

Phase 2

45,000

TBD

APPL

Phase 1

APPL

Phase 1 Expansion

45,000

TBD

Ivanhoe Energy Inc. Tamarack

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

APPL

Phase 2

20,000

TBD

APPL

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.

Updated: Jun 2014

Southern Pacific has installed a third set of inflow control devices at the STP-McKay project. The devices are designed to improve wellbore conformance. Southern Pacific expects that further installations will be completed over the next three months.

Phase 1

Phase 3

CAPACITY

12,000

2012

OP

6,000

2016

APPL

Phase 2A

12,000

2018

APPL

Phase 2B

6,000

2018

APPL

Suncor Energy Inc. •

Dover

Updated: Jul 2014

N-Solv Corporation says it signed a data access agreement making Thai-owned PTTEP Canada Limited a participant in the bitumen extraction solvent technology pilot plant located at Suncor’s Dover site. Demonstration Plant

500

2013

Firebag

OP Updated: Jun 2014

Suncor says it has completed ramp-up of Firebag Stage 4. The company continues to advance further debottlenecking initiatives of logistics infrastructure and Firebag facilities. Stage 1

35,000

2004

OP

Stage 2

35,000

2006

OP

Phase 1

30,000

2018

ANN

Cogeneration and Expansion

25,000

2007

OP

Phase 2

30,000

TBD

ANN

Stage 3

42,500

2011

OP

Stage 4

42,500

2012

OP

Updated: Jun 2014

Stage 5

62,500

2018

Approved

Marathon says it expects to receive regulatory approval for the Birchwood project by the end of 2014. Upon receiving this approval, the company will further evaluate its development plans.

Stage 6

62,500

2019

Approved

Stage 3-6 Debottleneck

23,000

TBD

Marathon Oil Corporation Birchwood

Demonstration

12,000

2017

APPL

Oak Point Energy Ltd. Lewis

Updated: Jun 2014

Oak Point says it will receive partial funding from AIMCo and is confident the project will be fully funded. Pilot

1,720

TBD

Approved

Prosper Petroleum Ltd. Rigel

Updated: Dec 2013

Prosper Petroleum filed its regulatory application for the Rigel SAGD project in November 2013. Phase 1

10,000

2017

APPL

Audet

Updated: Jun 2014

SilverWillow says it continues to advance the Audet project through stakeholder engagement and meetings with the regulators. The company is still awaiting a more definitive description of new regulatory requirements that will apply to shallow SAGD projects as announced earlier this year. Until the company has clarity on the new requirements it will limit spending on Audet to those activities required to advance the regulatory process. 12,000

2018

APPL

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APPL 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. Phase 1

40,000

TBD

Phase 2

40,000

TBD

MacKay River

ANN ANN Updated: Jun 2014

Suncor says in April it reached a milestone by achieving first steam on the well pads associated with the MacKay River facility debottleneck project, with first oil expected in the third quarter of 2014. Suncor also continues to work towards a 2014 sanction decision of the MacKay River expansion project. Phase 1 Debottleneck MR2

SilverWillow Energy Corporation

Pilot

Lewis

33,000

2002

OP

5,000

2014

OP

20,000

2017

APPL

Sunshine Oilsands Ltd. Legend Lake

Updated: Dec 2013

Sunshine says it is completing field work for its environmental analysis, which will support work for significant commerical expansion. Phase A1

10,000

2016

APPL

Phase A2

30,000

TBD

ANN

Sprung Structures Head Office and Manufacturing Aldersyde, Alberta

Calgary, Alberta

1.403.601.2292

Toll Free: 1.800.528.9899 www.sprung.com/oilgas

SEPTEMBER 2014 | OILSANDSREVIEW.COM

65


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

Legend Lake (continued)

REGULATORY STATUS

Updated: Dec 2013

Phase B1

30,000

TBD

ANN

Phase B2

30,000

TBD

ANN

Thickwood

Updated: Feb 2014

CURRENT PROJECT

REGULATORY STATUS

Christina Lake

Updated: Jun 2014

Cenovus says the Phase F expansion is on schedule and on budget. About 50 per cent of the project is complete, with work continuing primarily on procurement and construction. First production is expected in 2016. Cenovus is also working on engineering and procurement for Phase G. Phase 1A

10,000

2002

OP

Phase A1

10,000

2015

Approved

Phase 1B

8,800

2008

OP

Phase A2

30,000

2017

ANN

Phase C

40,000

2011

OP

Phase B

30,000

2021

ANN

Phase D

40,000

2012

OP

Phase E

40,000

2013

OP

Optimization (Phases C,D,E)

22,000

2015

Approved

Phase F

50,000

2016

UC

Phase G

50,000

2017

Approved

50,000

2019

West Ells

Updated: Jul 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. Sunshine has completed the sale of certain non-core oilsands assets for $20 million. Phase A1

5,000

2015

HOLD

Phase H

Phase A2

5,000

TBD

Approved

Foster Creek

Phase A3

30,000

2018

ANN

Phase B

20,000

2025

ANN

Phase C1

30,000

TBD

ANN

Phase C2

30,000

TBD

ANN

Phase A

Athabasca Oil Corporation Updated: Jun 2014

Athabasca says that all 25 producer and injector laterals have now been drilled in a program that delivered better-than-expected cost and schedule; reservoir quality is consistent with expected results. The project was 80 per cent complete at March 31, 2014, and approximately 90 per cent of total costs have now been contracted. Phase 1

12,000

2015

UC

Phase 2

40,000

2017

APPL

Phase 3

30,000

2018

APPL

BlackPearl Resources Inc. Blackrod

Updated: Jun 2014

800

2011

OP

Phase 1

20,000

2015

APPL

Phase 2

30,000

2018

APPL

Phase 3

30,000

2021

APPL

Canadian Natural Resources Limited Gregoire Lake

Phase 2

Updated: Dec 2013

60,000 60,000

TBD

OP

Phase C Stage 1

10,000

2005

OP

Phase C Stage 2

20,000

2007

OP

Phase D

30,000

2009

OP

Phase E

30,000

2009

OP

Phase F

45,000

2014

UC

Phase G

40,000

2015

UC

Phase H

40,000

2016

UC

Phase J

50,000

2019

APPL

Future Optimization

15,000

TBD

Pilot

TBD

Grouse

2018

ANN

Kirby

Updated: Jun 2014

KS1 - Kirby South

40,000

2013

OP

KN1 - Kirby North

40,000

2017

Approved

KN2 - Kirby North

60,000

2022

APPL

Cavalier Energy Inc. Updated: Jun 2014

Regulatory approval for the first phase of the Hoole project was granted in June 2014.

OP

2017

Approved

Phase B

60,000

TBD

Approved

Phase C

60,000

TBD

Approved Updated: Jun 2014

Phase A

45,000

2017

UC

Phase B

45,000

TBD

Approved

Phase C

40,000

TBD

Approved Updated: Dec 2013

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

30,000

TBD

Winefred Lake

ANN Updated: Dec 2013

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

30,000

TBD

ANN

Phase 1

72,000

2008

OP

Kinosis (K1A)

40,000

TBD

UC

Kinosis (K1B)

40,000

TBD

Approved

CNOOC Limited Long Lake

Updated: Jan 2014

Connacher Oil and Gas Limited •

Hoole

2011

60,000

West Kirby

APPL

Canadian Natural says the reservoir is responding as expected, with 2014 first-quarter production averaging 5,000 barrels per day and April 2014 production averaging approximately 14,000 barrels per day. Production is targeted to grow to facility capacity of 40,000 barrels per day by year-end. The Kirby North project is continuing toward commencement of construction and regulatory approvals are progressing.

600

Phase A

Cenovus says that overall progress on Phase A was 19 per cent complete at the end of the first quarter, and site construction, engineering and procurement are progressing as expected.

Updated: Dec 2013

50,000

ANN Updated: Jun 2014

Narrows Lake

ANN

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

OP

2003

Cenovus received regulatory approval for the Grand Rapids project in the first quarter. The company plans to move forward with phase A, and continue its work on the SAGD pilot project, which has two producing well pairs.

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

2001

6,000

Grand Rapids

BlackPearl says that a second SAGD pilot well pair was converted to SAGD in March and is expected to reach peak production rates in 12–15 months. The company continues to expect approval of the 80,000-barrel-per-day commercial development application later in 2014. Pilot

24,000

Phase B Debottleneck

Hangingstone

APPL Updated: Jun 2014

Cenovus says Phase F is on schedule and on budget, with 93 per cent of the project complete and on track to start injecting steam in the next month. Production is expected in the third quarter of 2014, with full ramp-up following 12–18 months after. Phase G is 69 per cent complete, and Phase H is 42 per cent complete.

SOUTH ATHABASCA REGION — IN SITU

66

START-UP

Cenovus Energy Inc.

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

CAPACITY

Great Divide

Updated: Jul 2014

Connacher says it will increase its 2014 capital plan from $50 million to $113 million following closing of financing in May. The new funds will be spent primarily on commercialization of the SAGD+ process and a mini-steam expansion. Two well pads were taken offline briefly in July to complete tie-ins for nine new infill wells that are expected to be on production by August.

Phase 1

10,000

2017

Approved

Phase 2

35,000

TBD

ANN

Pod One

10,000

2007

OP

Phase 3

35,000

TBD

ANN

Algar

10,000

2010

OP

OILSANDS REVIEW | SEPTEMBER 2014


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

REGULATORY STATUS

START-UP

Great Divide (continued)

Updated: Jul 2014

Expansion 1A

12,000

TBD

Approved

Expansion 1B

12,000

TBD

Approved

ConocoPhillips Canada •

Surmont

Updated: Jul 2014

ConocoPhillips Canada has submitted an Environmental Impact Assessment report to regulators for its planned Surmont 3 Project. Pilot

1,200

1997

OP

Phase 1

27,000

2007

OP

Phase 2

109,000

2015

UC

Phase 3 - Tranche 1

45,000

2020

APPL

Phase 3 - Tranche 2

45,000

2021

APPL

Phase 3 - Tranche 3

45,000

2023

APPL

Devon Canada Corporation Jackfish

Updated: Jun 2014

Devon says that first-quarter results were highlighted by the excellent performance at Jackfish 1, where gross production exceeded nameplate facility capacity averaging 37,000 barrels per day. Construction of the company’s Jackfish 3 project is nearly complete. Plant start-up at Jackfish 3 is expected in the third quarter of this year. Phase 1

35,000

2007

OP

Phase 2

35,000

2011

OP

Phase 3

35,000

2014

Jackfish East Expansion

UC Updated: Sep 2012

20,000

2018

Pike

ANN Updated: Mar 2013

Devon says the Pike project continues to move through the regulatory process. 1A

35,000

2016

APPL

1B

35,000

2017

APPL

1C

35,000

2018

APPL

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Grizzly Oil Sands ULC •

Algar Lake

Updated: Jul 2014

Grizzly Oil Sands says it has commenced crude oil shipments to the U.S. Gulf Coast through its Windell rail terminal near Conklin, Alta. Permitting is underway for the Paulina Terminal in Louisiana.

Phase 1

5,500

2014

OP

Phase 2

5,500

TBD

Approved

May River

Updated: Jul 2014

Grizzly filed the regulatory application for May River Phase 1 & 2 in December 2012. The company plans to file the regulatory application for a 90,000-barrel-per-day full field development by December 2016. Phase 1

6,000

2016

APPL

Phase 2

6,000

TBD

APPL

Harvest Operations Corp. BlackGold

Updated: Jun 2014

Harvest says that Phase 1 of the project is approximately 93 per cent complete as at March 31, 2014. Phase 1 completion, commissioning of the central processing facility and first steam are expected in 2014. Phase 1

10,000

2015

UC

Phase 2

20,000

TBD

Approved

Japan Canada Oil Sands Limited Hangingstone Expansion

Updated: Feb 2014 20,000

2016

UC

11,000

1999

OP

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Hangingstone Pilot Pilot Koch Exploration Canada Corporation Muskwa

Updated: Jun 2014

Regulatory approval granted in June 2014. Pilot

10,000

2015

Approved

SEPTEMBER 2014 | OILSANDSREVIEW.COM

67


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

Laricina Energy Ltd.

CURRENT PROJECT

Updated: Jun 2014

Chard

Laricina says that steady operations have been achieved at Germain and production has begun to ramp up. The plant was running well throughout the first quarter, exceeding operational uptime targets and continues to do so into the second quarter. A planned turnaround is scheduled for June for general maintenance. The company has also received the environmental completeness report on the regulatory application for the Germain expansion. 5,000

2013

OP

Phase 2

30,000

2018

APPL

Phase 3

60,000

TBD

APPL

Phase 4

60,000

TBD

APPL

Saleski

Updated: Jun 2014

Laricina says Saleski continues to further demonstrate the path to commerciality in the Grosmont Formation with repeatable and predictable production performance. Detailed engineering and design of Saleski Phase 1 is expected to be 90 percent complete by the end of 2014. OTSGs are expected to be completed and transferred to Laricina by year-end. Start-up is expected for the third quarter of 2017, depending on project sanctioning and the timing of additional financing. Experimental Pilot

1,800

2011

OP

Phase 1

10,700

2017

Approved

Phase 2

30,000

TBD

ANN

Phase 3

60,000

TBD

ANN

Phase 4

60,000

2023

ANN

Phase 5

60,000

2026

ANN

Phase 6

60,000

TBD

ANN

Christina Lake

Phase 1

Updated: Nov 2012 40,000

TBD

Meadow Creek

ANN Updated: Nov 2012

Phase 1

40,000

TBD

Approved

Phase 2

40,000

TBD

Approved

Surmont Energy Ltd. Wildwood

Updated: Jun 2014

The Wildwood project is waiting on Alberta Energy Regulator approval. Surmont says that financing is not currently in place, but there are several interested parties in Asia and domestically for either a joint venture or straight investment. Phase 1

12,000

2015

APPL

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

15,000

2016

APPL

ATS-2

30,000

2018

APPL

ATS-3

30,000

2020

TriStar

Updated: Jun 2014

With the benefits of its RISER initiative at its Phase 1 and 2 assets and the ramp-up of production from Phase 2B, MEG reached a production record of 58,643 barrels per day in the first quarter, an increase of 80 per cent over first-quarter 2013 volumes of 32,531 barrels per day. The company says it is well on track to reach 80,000 barrels per day by 2015.

APPL Updated: Feb 2014

Pilot

1,000

TBD

Approved

COLD LAKE REGION — IN SITU Baytex Energy Corp.

3,000

2008

OP

Phase 2A

22,000

2009

OP

Phase 2B

35,000

2013

OP

Phase 3A

50,000

2016

UC

Pilot

1,200

2014

OP

Phase 3B

50,000

2018

Approved

Commercial

5,000

2017

Approved

Phase 3C

50,000

2020

Approved

Phase 1

41,000

TBD

APPL

Phase 2

41,000

TBD

APPL

Phase 3

41,000

TBD

APPL

Surmont

Gemini

Birchwood Resources Inc. Sage

Updated: Jun 2014

Currently waiting on Alberta Energy Regulator approval. The company is confident that funding will be in place once approval is granted and expects first steam in late 2016. Pilot

5,000

TBD

APPL

Canadian Natural Resources Limited

Sepiko Kesik

Updated: Jul 2013

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

30,000

2018

APPL

Phase 2

30,000

2020

APPL

Statoil Canada Ltd. Kai Kos Dehseh

Updated: Apr 2014

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. Leismer Demonstration

10,000

2010

OP

Corner

40,000

2017

Approved

Leismer Commercial

10,000

TBD

Approved

Leismer Expansion

20,000

TBD

Approved

Corner Expansion

40,000

TBD

APPL

Primrose & Wolf Lake

Updated: Jul 2014

The Alberta Energy Regulator (AER) has released the results of an independent technical review of Canadian Natural’s causation report into four bitumen flow-to-surface incidents that occurred at Primrose in 2013, determining that the enabling factors were the steaming strategy and wellbore issues. The AER says these flow-to-surface events can be prevented if proper mitigation measures are put in place. However, steaming restrictions in place since June 2013 will remain as the AER’s investigation continues and a gradual, step-by-step approach is established for returning to full operations. Canadian Natural and the independent panel will submit final reports to the AER in September 2014. Wolf Lake

13,000

1985

OP

Primrose South

45,000

1985

OP

Primrose North

30,000

2006

OP

Primrose East

32,000

2008

OP

Devon Canada Corporation Walleye

Updated: Mar 2014

Devon says the Walleye project is currently on hold. Phase 1

9,000

2017

APPL

Husky Energy Inc.

Hangingstone

20,000

TBD

APPL

Leismer Northwest

20,000

TBD

APPL

Caribou

Leismer South

20,000

TBD

APPL

Demonstration

Thornbury

40,000

TBD

APPL

Tucker

Thornbury Expansion

20,000

TBD

APPL

Phase 1

OILSANDS REVIEW | SEPTEMBER 2014

Updated: Jun 2014

According to Alberta Energy Regulator data, first oil was achieved at the Gemini SAGD project in March 2014.

Updated: Oct 2013

OSUM Oil Sands Corp.

68

REGULATORY STATUS

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

MEG Energy Corp.

Phase 1 Pilot

START-UP

Suncor Energy Inc.

Germain

Phase 1 CDP

CAPACITY

Updated: Nov 2010 10,000

TBD

Approved Updated: Jun 2013

30,000

2006

OP


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

REGULATORY STATUS

Imperial Oil Limited Cold Lake

Updated: Jun 2014

Imperial Oil Limited announced in late June it had completed a major maintenance turnaround at its Cold Lake Mahihkan facilities without a lost-time safety incident. Imperial says the turnaround was executed in five weeks as scheduled and within budget, with 200,000 total hours worked. Phase 1-10

110,000

1985

OP

Phase 11-13

30,000

2002

OP

Phase 14-16

40,000

2014

UC

OSUM Oil Sands Corp. 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

Pengrowth Energy Corporation Lindbergh

Updated: Jun 2014

Pengrowth has filed the regulatory application for the 17,500-barrel-per-day Phase 2 Expansion. The company says that all of the major equipment for Lindbergh Phase 1 arrived on site during the first quarter and two of the three well pads have been drilled. The two well-pair pilot continues to show exceptional results. Production averaged 1,780 barrels per day in first quarter with an average steam to oil ratio of 2.1:1. Alberta has also issued the final terms of reference for the Lindbergh expansion project. Pilot

1,260

2012

OP

Phase 1

11,240

2015

UC

Phase 2 Expansion

17,500

2017

APPL

Phase 3

20,000

2018

ANN

Royal Dutch Shell plc Orion

Updated: Jun 2014

OSUM will acquire the Orion SAGD project for $325 million.

Express Integrated Technologies (EIT) engineers and fabricates custom-

designed equipment for the process and power industries, including mid-stream processes, cogeneration equipment, and Once-Through Steam Generators for in-situ oil production.

EIT Canada Ltd’s

Calgary office specifically serves the needs of the Canadian oil sands market.

Once-Through Steam Generators Custom Innovative Designs

Phase 1

10,000

2007

OP

SAGD and CSS Applications

Phase 2

10,000

TBD

Approved

50 mm BTU/hr and Larger

PEACE RIVER REGION — IN SITU

U.S. Manufacturing Facilities

Andora Energy Corporation Sawn Lake

Updated: Jun 2014

Andora majority owner Pan Orient Energy says that steam injection began in the first quarter. Demonstration

1,400

2014

OP

Baytex Energy Corp. Cliffdale

Updated: Jun 2014

Baytex says that 15 wells drilled in 2013 (Pad 2) are currently producing as planned under primary conditions to create the initial voidage required for the cyclic steam stimulation process. Steam injection at Pad 2 is expected to commence in mid-2014. Pilot

2,000

2011

Harmon Valley Pilot

OP Updated: Feb 2013

TBD

2011

OP

Murphy Oil Company Ltd. Cadotte Pilot

Updated: Nov 2012 TBD

TBD

Seal/Cadotte

HOLD

Canadian Pre-Assembly and Installation

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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

OP

Northern Alberta Oil Ltd. Sawn Lake

Updated: Jun 2014

Company owner Deep Well Oil & Gas announced in late May that first steam had been achieved. Once steam communication is established between the two wells, then the oil pumping will commence. Oil production is anticipated after three months of steam injection. Pilot

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

2014

OP

www.ExpressGroupHoldings.com SEPTEMBER 2014 | OILSANDSREVIEW.COM

69


P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

Seal Main

REGULATORY STATUS

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

OP

10,000

2015

APPL

Royal Dutch Shell plc Updated: Dec 2013

Cadotte Lake

12,500

1986

OP

Carmon Creek - Phase 1

40,000

2017

UC

Carmon Creek - Phase 2

40,000

2018

Approved

Southern Pacific Resource Corp. Red Earth

Updated: Apr 2013

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

Commercial

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

Updated: Apr 2014

BP says that ongoing appraisal activities continue. Pilot

8,400

TBD

Approved

Horizon

Updated: Jun 2014

During first-quarter 2014, Horizon continued to achieve strong and reliable OP performance, with synthetic crude oil production averaging approximately 113,000 barrels per day, a four per cent increase from first-quarter 2013 levels and a one per cent increase over 2013 fourthquarter levels. Production is targeted to increase in 2014 by about 11,000 barrels per day from 2013 levels as a result of the continued focus on effective and efficient operations. The overall Horizon Phase 2/3 expansion is 37 per cent physically complete. Phase 1 Reliability - Tranche 2

110,000

2009

OP

5,000

2014

UC

ANN

Phase 2A

12,000

2015

UC

10,000

TBD

ANN

Phase 2B

45,000

2016

UC

Phase 3

80,000

2017

UC

Updated: Jun 2014

Touchstone is in the final stages of its initial steam injection cycle on two operated wells and will begin production during the month of June. The company will initiate a development plan for this property based on the initial economic results of the first production cycle. TBD 10,000

2014

OP

TBD

ANN

SASKATCHEWAN REGION — IN SITU

Ivanhoe Energy Inc. Tamarack

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

Cenovus Energy Inc.

34,784

2017

APPL

Suncor 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

REGULATORY STATUS

TBD

Dawson

Phase 2

START-UP

3,000

Touchstone Exploration Inc.

Experimental Demonstration

CAPACITY

Canadian Natural Resources Limited

Peace River

Pilot Expansion

CURRENT PROJECT

30,000

TBD

HOLD

Base Operations

Updated: Jun 2014

Suncor says that it reached a synthetic crude oil production record of 312,200 barrels per day in the first quarter of 2014, which included a 21 per cent increase in sweet production compared to the prior year quarter due to improved upgrader reliability. U1 and U2

225,000

1967

OP

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P R O J E C T S TAT U S

CURRENT PROJECT

CAPACITY

START-UP

Base Operations (continued)

REGULATORY STATUS

Updated: Jun 2014

Millennium Vacuum Unit

35,000

2005

OP

Millennium Coker Unit

97,000

2008

OP

Syncrude Canada Ltd. Mildred Lake/Aurora

Updated: Jun 2014

Canadian Oil Sands Limited says that the cost estimate for the Mildred Lake Mine Train Replacement project has been reduced to $3.9 billion from $4.2 billion, and the project remains on schedule for completion in the fourth quarter of this year.

START-UP

INDUSTRIAL HEARTLAND REGION — UPGRADER North West Upgrading Inc. •

Redwater Upgrader

Updated: Jul 2014

More than 650 personnel are engaged at the site, with work continuing on site infrastructure and buildings. Assembly welding of reactor segments is about to begin. Turnover of prepared process unit areas to contractors will be done through summer 2014. Foundation work will continue throughout the second half of 2014 in preparation for module arrival at site commencing late 2014, early 2015. 2017

UC

OP

Phase 2

50,000

TBD

Approved

ANN

Phase 3

50,000

TBD

Approved

1978

OP

Stage 3 Expansion (UE-1)

100,000

2006 TBD

Shell Albian Sands

SOUTH ATHABASCA REGION — UPGRADER

Scotford Upgrader

CNOOC Limited Long Lake

Updated: Jan 2014

Phase 1

58,500

2009

OP

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

APPL

ATS-2

25,500

2018

APPL

ATS-3

25,500

2020

TriStar

APPL Updated: Feb 2014

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

820

REGULATORY STATUS

50,000

250,000

75,000

CAPACITY

Phase 1

Base Plant Stage 1 & 2 Debottleneck

Stage 3 Debottleneck

CURRENT PROJECT

TBD

Approved

Updated: Jun 2014

Minority partner Marathon Oil Corporation says its income from the project increased in the first quarter of 2014, primarily as a result of lower contract services and contract labour, and higher turnaround costs in the same quarter of 2013. The impact of higher price realizations in the first quarter of 2014 was mostly offset by lower net sales volumes due to reliability issues at both the Jackpine and Muskeg River mines. Commercial

155,000

2003

OP

Expansion

100,000

2011

OP

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

HOLD

Phase 2

46,300

TBD

Approved

Phase 3

46,300

TBD

Approved

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