Husky Energy begins production at Edam East heavy oil thermal project in Canada

Canadian-based Husky Energy has started production at its Edam East Lloyd heavy oil thermal project, located 100km east of Lloydminster in Saskatchewan.

The development follows the commencement of steam operations at the project earlier in March 2016.

The 10,000 barrels per day (bbls/day) Edam East project produced first oil about seven weeks following the startup of steaming operations.

Husky Energy CEO Asim Ghosh said: "Our growing portfolio of heavy oil thermal projects continues to lead Husky’s transition into a low sustaining capital business.

"Edam East is another example of the quick ramp ups that we’ve come to expect from these developments, which have operating costs amongst the lowest in the industry."

During the fourth quarter of 2015, Husky’s operating costs for its Lloyd thermal product line averaged about $7 per barrel.

Two additional Lloyd thermal projects including the 10,000 bbls/day Vawn project and the 4,500 bbls/day Edam West project are expected to begin production in the third quarter of 2016.

Each plant is expected to create up to 30 permanent jobs and up to 250 jobs at the time of construction.

By the end of 2016, the total thermal production of Husky is expected to reach about 80,000 bbls/day.

The company’s thermal projects are supported by the Lloyd Value Chain, which includes the Saskatchewan gathering system, the upgrader and asphalt refinery, and Hardisty’s oil storage capacity.