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Husky Energy Inc., Calgary, has started steam operations at the 10,000-b/d Edam East heavy oil thermal project in Saskatchewan. Production is expected to begin early in the second quarter.

“Edam East is the latest in our growing suite of heavy oil thermal projects, which are leading our transition into a low-sustaining capital business,” said Asim Ghosh, Husky chief executive officer.

The addition of the Edam East, Vawn, and Edam West projects is expected to add a total of 24,500 bbl in new production by yearend.

“With fast build times and quick ramp ups, these projects typically surpass their nameplate capacity in their early years and the operating costs are amongst the lowest to be found anywhere in the industry," explained Ghosh.

By yearend more than 40% of Husky’s overall production is expected to come from low sustaining capital projects compared with 8% in 2010, the company says.

The 10,000-b/d Vawn development and the 4,500-b/d Edam West project are set to begin production in the third quarter.

Husky’s integrated downstream operations further support its thermal business. The Lloyd heavy oil value chain originates with the company’s resource in the Lloyd area and includes the Saskatchewan gathering system, the upgrader and asphalt refinery, and oil storage capacity at Hardisty.

Tag(s) : #Oil and Gas News
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