Nexen Energy says it will spend about $400 million to build a 26,000-barrel-per-day expansion of its Long Lake oilsands project in northern Alberta.
The company, which was purchased by Chinese state-owned China National Offshore Oil Co. Ltd. (CNOOC) in 2013, says its Long Lake Southwest expansion will add three steam-driven well-pads that will send bitumen to its existing facilities.
It says in a release on its website the project has been approved by the Alberta Energy Regulator and “affirms” CNOOC’s long-term confidence in the Alberta energy sector.
READ MORE: Western Canada energy producers enjoy higher oil prices as pipeline congestion eases: analysts
Get weekly money news
Watch below: Oil prices surge, but Canadian producers not reaping the benefits (Jan. 25, 2018)
- Why Canada’s caregivers say their retirement plans are being ‘decimated’
- Province interfering in Edmonton housing sets disturbing precedent: Calgary mayor
- Consultants for Hydro-Québec defend proposal to double energy costs for data centres
- Corus completes recapitalization transaction, appoints new Board
GMP FirstEnergy estimates Nexen’s existing works produced about 41,000 barrels of bitumen per day in 2017.
A company spokeswoman said site preparation has already begun, with first oil anticipated in late 2020.
Nexen is facing provincial labour charges from the deaths of two employees after an explosion at the site in 2016. The incident led to it closing permanently its damaged Long Lake upgrader.
It is also facing regulatory charges after a Long Lake pipeline ruptured and spilled five million litres of sand, bitumen and wastewater into muskeg in 2015.
Comments
Want to discuss? Please read our Commenting Policy first.