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Husky Energy has commenced steam operations at the 4,500 barrels per day (bbls/day) Edam West Thermal in Saskatchewan, its third thermal project to be brought online this year.
The 10,000 bbls/day Edam East Thermal Project, which achieved first oil in April, is now producing above its design rate at approximately 11,000 bbls/day. At the 10,000 bbls/day Vawn development, first production has started approximately six weeks after steaming began.
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."
Husky is leveraging its growing thermal expertise at the Tucker Thermal Project near Cold Lake, Alberta, where production is now approximately 22,000 bbls/day. Combined production from Lloyd thermals and Tucker is now 85,000 bbls/day and is expected to exceed 100,000 bbls/day in the second half of 2016.
By the end of this year, more than 40 per cent of Husky's overall production is expected to come from low sustaining capital projects, including its thermal projects, compared to just eight per cent in 2010.
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