​Husky applies for $400 million new thermal oilsands project

Image: Joey Podlubny/JWN

Husky Energy has filed regulatory applications for a new 10,000 bbl/d steam-based oilsands project south of Fort McMurray.

Called McMullen Willow Creek, the project would use low-pressure cyclic steam stimulation (CSS) technology, where single horizontal wells act as both steam injectors and bitumen producers.

In CSS, operations cycle between steaming, soaking to mobilize the bitumen, and then production.

The proposed McMullen Willow Creek site is located near the hamlet of Wabasca-Desmarais, nearby the suspended bitumen carbonates extraction pilot owned by Laricina Energy and Osum Oil Sands.

Husky’s project has a projected initial capital cost of $400 million, according to documents filed with the Alberta Energy Regulator.

Construction is expected to start in 2019, followed by first steam in 2022.