ConocoPhillips (NYSE: COP) has delivered first oil at its Surmont 2 in-situ oil sands facility in Canada, the company said in a news release.
Construction of the Surmont 2 facility, described by ConocoPhillips as the largest single-phase steam-assisted gravity drainage (SAGD) project ever undertaken, began in 2010. Earlier this year, ConocoPhillips announced first steam, the initial step toward production, the release said. Since that time, steam has heated the reservoir to a point where the well pairs can be converted to a SAGD configuration and allows the oil to flow. Production was declared once the inspected product was successfully routed to sales tanks.
Production will ramp up through 2017, adding about 118,000 barrels of oil per day (bbl/d) gross capacity. Total gross capacity for Surmont 1 and 2 is expected to reach 150,000 bbl/d.
The Surmont project is located in the Athabasca Region of northeastern Alberta, Canada, about 63 km (35 miles) southeast of Fort McMurray. Surmont is operated by ConocoPhillips under a 50/50 joint venture agreement with Total E&P Canada.
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