First project of three for 2016 now producing
Husky Energy (ticker: HSE; Husky.com) began production on its Edam East Lloyd Thermal project in Saskatchewan. The Edam East Lloyd Thermal project is the first scheduled thermal project for Husky this year. The company has a total of three thermal projects planned for 2016. Husky’s two other thermal oil projects are the Lloyd Vawn and the Edam West projects.
The company reported that the Edam East project is estimated to produce 10 MBOPD seven weeks following the start of steaming operations.
Both of Husky’s other projects are anticipated to start production in the third quarter of 2016. The Vawn project is projected to produce 10 MBOPD while the Edam West thermal project is projected to produce 4,500 MBOPD.
Husky is targeting to reach 80 MBOPD of total thermal output by the end of 2016.
Husky CEO Asim Ghosh credits the low operating cost associated with oil thermal projects to Husky’s recent transition into a low sustaining capital business. “Edam East is another example of the quick ramp ups that we’ve come to expect from these developments, which have operating costs amongst the lowest in the industry,” Ghosh said in a press release.
Husky’s thermal projects are supported by the Lloyd Value Chain, which originates with the Company’s extensive resource in the Lloyd area and includes the Saskatchewan gathering system, the upgrader and asphalt refinery, and oil storage capacity at Hardisty.
