ConocoPhillips delivered first oil at its Surmont 2 in-situ oil sands facility in Canada, marking a significant milestone for the megaproject. Construction of the single-phase, steam-assisted gravity drainage (SAGD) project began in 2010.
Earlier this year, the company announced first steam, which has heated the reservoir to a point at which the well pairs could be converted to a SAGD configuration, allowing the oil to flow. Production will ramp-up through 2017, adding about 118,000 bpd of gross capacity. Total gross capacity for Surmont 1 and 2 is expected to reach 150,000 Bpd.
“The oil sands are an important part of our portfolio,” said Ryan Lance, chairman and CEO. “We’re pleased to see a project of this magnitude move from the capital phase to the production phase, knowing that it will produce for decades to come.”
The project is located in the Athabasca Region of northeastern Alberta, Canada, about 35 miles (63 kilometres) southeast of Fort McMurray. Surmont is operated by ConocoPhillips under a 50/50 joint venture agreement with Total E&P Canada.