Husky greenlights another Saskatchewan SAGD project

One of Husky's 11 operating SAGD projects in Saskatchewan. Image: Husky Energy

Husky Energy says it will proceed with yet another Lloydminster SAGD project, just two months after completing its latest facility in the heavy oil play.

In December the company officially added the 10,000-bbl/d Spruce Lake East project to its Saskatchewan SAGD growth pipeline.

Including the new Rush Lake 2 project, which was completed in October 2018, Husky says it now has 11 small-scale, modular SAGD projects producing in the Lloydminster region.

Construction is currently underway on Dee Valley and Spruce Lake Central, both with capacity of 10,000 bbls/d. Dee Valley construction work is moving more quickly than expected, Husky says, with first oil now expected in Q4/2019. Spruce Lake Central first oil is expected in the second half of 2020.

Early construction work is also underway on a 10,000-bbl/d project at Spruce Lake North, with production expected to start in late 2020.

Construction of newly-sanctioned Spruce Lake East is likely to start in mid-2020; it’s now one of three additional 10,000-bbl/d projects with corporate approved to proceed. That brings Husky's total to 17 Saskatchewan SAGD projects in development.

The company expects its Saskatchewan thermal oil production to average 77,000 bbls/d in 2018, increasing to 135,000 bbls/d in 2020.

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