The new 10,000 barrels per day (bbls/day) heavy oil thermal project, Rush Lake 2, is planned to commence production in late 2018.
The company plans to increase its heavy oil thermal production to about 80,000 bbls/day by the end of 2016, from about 18,000 bbls/day in 2010.
Husky Energy CEO Asim Ghosh said: "Rush Lake 2 is yet another project in a high-return portfolio that is profitable even at today’s low oil prices.
"These developments are key in our transition to a low sustaining cost business. Supported by the Lloydminster thermal value chain, we capture incremental value from production and realize the upgrading and refining margins, further strengthening our resilience."
The company’s three other thermal projects, construction of which is already underway, is planned to commence production next year.
In particular, production of the 10,000 bbls/day Edam East, one of the three projects, is expected to start in the second quarter next year and that of the other two projects, 10,000 bbls/day Vawn and 4,500 bbls/day Edam West, is planned in the third quarter.
Additionally, the company also announced its plan to proceed with the initial stages of a crude oil flexibility project aimed at improving reliability of the Lima refinery, located in Ohio, US.
In addition to allowing the firm to further balance its upstream production and downstream capabilities, the project enables processing of up to 40,000 bbls/day of heavy crude feedstock from Western Canada.
The project is planned to be completed over the next three years and in stages.
Ghosh added: "The margin-based Downstream business further improves Husky’s resiliency in a low oil price environment by mitigating exposure to oil price differentials."
Husky earlier said it also plans to develop four additional 10,000 bbls/day thermal projects, subject to final approvals and capital availability, before 2021.
Image: Husky Energy’s Rush Lake Pilot Project in Saskatchewan. Photo: courtesy of Husky Energy Inc.
