Post by Admin on Sept 2, 2015 20:06:27 GMT
SEP 2, 2015 AT 8:17 AM IN NEWS BY BRADLEY KARP
ConocoPhillips safely delivered first oil at Surmont 2 yesterday.
“The oil sands are an important part of our portfolio,” said Ryan Lance, chairman and chief executive officer. “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. Achieving this milestone on schedule demonstrates our continued commitment to meet our operational targets.”
Surmont 2 is the largest single-phase SAGD project in the world, construction began in 2010. The project is expected to reach peak production of about 118,000 barrels per day through 2017. In total the two phase project has a gross capacity of 150,000 barrels daily.
“To achieve this milestone on schedule is a testament to the tremendous dedication, continuous hard work and relentless focus on safety and execution,” said President Ken Lueers. “I am incredibly proud of the teams who have contributed to this success.”
The project is a 50/50 joint venture with Total E&P Canada.
ConocoPhillips also announced yesterday that it’s cutting 400 employees and one-hundred contractors, which is about 15 per cent of its workforce in an effort to reduce costs.