The Spruce Lake project will ramp up to full production over the next couple of months
The project is the company's sixth 10,000 barrel per day thermal bitumen project since 2015. (Credit: Kasey Houston from FreeImages)
Canadian integrated energy company Husky Energy has produced first oil at the Spruce Lake Central thermal project in Saskatchewan.
The thermal project will ramp up to full production over the next couple of months.
The company said that the project is its sixth 10,000 barrel per day thermal bitumen project since 2015, which has been completed on schedule and on budget.
Husky’s Saskatchewan thermal projects are directly connected to its Lloydminster Upgrader, Asphalt Refinery and Midwest US refineries.
According to the company, the projects have an access to secured pipeline capacity and full storage.
Husky nears startup of the Liuhua 29-1 field at the Liwan gas project
Husky has also announced that it is nearing the commencement of the Liuhua 29-1 field at the Liwan gas project, offshore China.
The company has completed the tie-in of the Liuhua 29-1 field in the Asia Pacific region and the first gas production and sales are expected in early fourth quarter.
Husky Energy CEO Rob Peabody said: “Both Spruce Lake Central and the Liuhua 29-1 field are expected to generate immediate strong free cash flow at current pricing as they come onstream.
“Our portfolio of lower-cost, higher margin projects reinforces our resilience in a challenging market environment.”
Husky expects the first production and gas/liquids sales from the Liuhua 29-1 field to begin by November.
The company estimates production of about 45 mmcf/day of gas and 1,800 bbls/day of liquids when it is fully ramped up.
In March this year, Husky Energy announced that it will begin a systematic and orderly suspension of major construction activities at the West White Rose project.
The move was taken following the outbreak of the coronavirus pandemic.