Husky Energy says that it plans to invest C$5.2 billion over 10 years on three separate oil sands projects.
One project will be at Tucker Lake, west of Cold Lake, Alberta, Canada. Two others will be at Kearl Lake, on leases about 50 miles north of Fort McMurray.
The Tucker Lake project will be the first of the phased projects and will cost C$350 to C$450 million. Husky said it plans to make a regulatory filing to produce 15,000 to 20,000 barrels per day by 2004.
The Kearl Lake No. 87 Lease, which will be developed later, covers 48,880 acres. Husky owns 51 percent and Imperial Oil has 49 percent.
The two companies also hold 50/50 interests in a smaller adjacent lease, No. 6 to the north.
Husky is considering a surface mining operation to recover bitumen on the northern half of Lease 87 and part of Least 6. The Southern half of Lease 87 is being considered for steam-assisted gravity drainage recovery. This half would be developed first at an estimated cost of C$1.6 billion. Production would start sometime during 2005-2007. The open pit mining operation would cost C$3.2 billion, with a completion date in 2008-2012.
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