Husky Energy started production Wednesday at its Sunrise Energy oil sands project in northern Alberta.
Total production is expected to hit 60,000 barrels per day around the end of 2016, with 30,000 bpd net to Calgary-based Husky.
Steam operations at Sunrise began in December 2014.
The steam-assisted gravity drainage project is located about 37 miles northeast of Fort McMurray.
According to Husky the Sunrise reservoir holds estimated reserves of 3.7 billion barrels of bitumen.
The company expects the project to produce for over 40 years “with very low ongoing capital costs.”
“Sunrise is the latest in a series of resilient, low sustaining capital projects to come online from our diverse portfolio,” Husky CEO Asim Ghosh.
Regulatory approvals are in place to ramp production up to 200,000 bpd and engineering work is in progress for the project’s second phase, Husky said.
Husky is the operator of Sunrise and holds a 50 percent working interest in the project.
BP holds the remaining 50 percent stake.
Bitumen produced at Sunrise can be processed at a Toledo, Ohio refinery jointly owned by BP and Husky.