ConocoPhillips, Total to quadruple production from Canada’s Surmount oil sands
21 Jan 2010
Global oil majors ConocoPhillips and Total SA announced a multi-billion dollar expansion of Surmount oil sands project in Canada, bringing into limelight the huge potential of Alberta's oil sands resources to meet the future energy needs of North America.
The Surmount project which is located approximately 63 kilometers southeast of Fort McMurray, Alberta, in the Athabasca oil sands region, is a 50:50 joint venture between US oil and gas company ConocoPhillips and Total E&P Canada Ltd, a wholly owned subsidiary of France's Total SA.
The first phase of the project has a crude oil capacity of 27,000 barrels per day (bpd). The partners announced the second phase of the project which will increase Surmount's gross production capacity fourfold to 110,000 bpd by 2015.
ConocoPhillips president and chief operation officer John Carrig said, "Surmont is an important part of our oil sands portfolio and we're pleased to announce its next phase of development.''
"The oil sands are an area of significant future oil production growth and are important for short- and long-term energy and economic security in North America. This phase of Surmont will also result in a significant increase in construction and operating jobs," he further said.
Initial work on the phase 2 expansion is slated to begin in 2010. Financial details of the project have not been disclosed. The phase 1 which is much smaller, involved a capital expenditure of around $1.4 billion.
