Husky Energy started production Thursday at the Rush Lake heavy oil thermal project in Saskatchewan, Canada.
First oil at the 10,000 barrels per day development was achieved eight weeks following the startup of steaming operations and just two years after project sanction, Alberta-based Husky said.
“Rush Lake joins an expanding lineup of thermal projects that are providing solid returns even in a low oil price environment.Our proven thermal formula can deliver these projects with greater cost and execution certainty, rapid ramp ups and low sustaining costs,” CEO Asim Ghosh said.
The project is expected to reach its nameplate production capacity around the end of 2015.
Including Rush Lake, the company expects add another 34,500 bpd over the next 18 months as it further advances its low-risk, modular construction templates and thermal technologies.
By the end of 2016, Husky said that about two-thirds of its heavy oil business will use thermal recovery processes.