The FINANCIAL — Total announces the start-up of production from the Surmont 2 oil sands project, located 63 kilometers southeast of Fort McMurray in the Athabasca region of Alberta, Canada.
As a result of the technology that will be implemented, production will ramp up through 2016 and 2017, adding 118,000 barrels of oil per day gross capacity. Total gross capacity for Surmont 1 and 2 is expected to reach 150,000 barrels of oil per day.
“This is Total’s fifth startup since the beginning of the year, and it contributes to our upstream growth” said Arnaud Breuillac, President Exploration & Production. “Surmont will produce substantial reserves, with a long plateau that will generate cash flow for decades to come.”
Surmont uses steam-assisted gravity drainage (SAGD) technology to heat the reservoir, allowing oil to flow and be recovered with top-tier energy efficiency, according to Total.
The Surmont project is a joint venture between ConocoPhillips (50%, operator) and Total (50%).
Total Exploration & Production in Canada
Total has been present in Canada’s upstream since 1999. Its 2014 equity production in the country was 12,000 barrels of oil per day, all from Surmont 1.
The Group also holds a 39.2% interest in the Fort Hills mining project currently under development.