Foster Creek receives approval to expand oil sands production
Cenovus Energy Inc. is moving forward with the expansion plans for its Foster Creek oil sands operation after receiving regulatory approval from the Alberta Energy Resources Conservation Board (ERCB). The approval covers three phases of expansion (F, G and H), which are expected to increase Foster Creek's production capacity to 210,000 bpd from the current 120,000 bpd.
"The regulatory approval of these expansions at Foster Creek is another milestone reached in Cenovus's efforts to expand production and increase net asset value," said Brian Ferguson, CEO of Cenovus. "With these approvals, we believe there is a step change in the value of this project as there's increased certainty around the schedule and timing of the expansion."
Each of the three phases that have been approved by the ERCB is designed to add an additional 30,000 bpd of oil production capacity to the Foster Creek facility. The next step for the expansion project is to receive endorsement from the Foster Creek/Christina Lake partnership with ConocoPhillips.
Engineering on phase F is already underway and preliminary ground work is expected to start soon. Additions to plant infrastructure will happen first, followed by pipelines and well pads. Cenovus expects to employ about 1,000 people to complete phase F. First production from this phase is anticipated in 2014. Production from the other two phases is anticipated in 2016-2017.
"In addition to expanding our current operations, our teams are working hard to prepare for regulatory reviews of several new, additional projects,'' Ferguson said. "We anticipate our combined expansions to result in a five-fold increase in our oil sands production by the end of 2019."
Comments