Operations start at Sunrise Phase 1 oil sands project in Canada

Operations have been started at the Sunrise Phase 1 in-situ oil sands project in Alberta, Canada.

Husky Energy and BP each have a 50% working interest in the project, which is located 60km northeast of Fort McMurray, Alberta.

Steam generation has commenced at the project, which is being developed utilising steam assisted gravity drainage oil well technology to recover the underground bitumen.

Oil production is anticipated in the first quarter of 2015 and the field is estimated to be in production for more than 50 years.

The project’s plan includes three phases of development increasing production capacity to 200,000 barrels per day (bpd).

The first phase is designed for 60,000 bpd of bitumen capacity in two processing plants, expected to be reached in the next 18 to 24 months.

The second plant of phase one is scheduled to start operations in the middle of 2015.

A second 70,000 bpd phase is in design stage and the third phase is in early appraisal.

The companies have secured regulatory approvals for about 200,000 barrels per day and engineering work is in progress for the second phase.

BP Upstream chief executive Lamar Mckay said: "Sunrise first steam is a landmark for us in 2014, our sixth major project start-up this year, our very first in-situ oil sands operations and a long-life asset which should give us steady production for decades.

"SAGD at Sunrise adds to our expertise in unconventional hydrocarbons including tight oil and gas, leveraging our technology lead in seismic interpretation and our management of giant reservoirs."

Sunrise contains estimated reserves of 3.7 billion barrels as of 31 December 2013. Husky and BP have a 50% working interest in the reserves.