Husky Energy has started steam operations at the 4,500 barrels per day (bbls/day) Edam West heavy oil thermal project in Saskatchewan, Canada.
It follows commencement of steam operation at the firm’s Edam East thermal project in April which currently has oil production capacity of approximately 11,000 bbls/day.
Husky Energy is also producing 10,000 bbls/day of oil from its Vawn development, which commenced production approximately six weeks after steaming began.
The company earlier said that the addition of Edam East, Vawn and Edam West to add about 24,500 barrels of new production by the end of this year.
Husky Energy CEO Asim Ghosh said: "The addition of these three projects is yet another significant step in our continued transition towards higher quality production.
"Thermal technology has turned our heavy oil business into a resilient growth engine, with some of the lowest operating costs in the industry at about $7 per barrel.
"And we have room to grow even further with another 18 thermal projects ready for advancement."
The firm uses recovery methods including predominately cold heavy oil production with sand (CHOPS) and horizontal well technology for its heavy oil operations.
Husky expects the combined production from Lloyd thermals and 22,000 bbls/day Tucker thermal project could exceed 100,000 bbls/day in the second half of 2016.