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Comment Business & Economics

Total and ConocoPhillips sanction Phase 2 of the Surmont Project

By Gerald Ondrey |

Total S.A. (Paris, France; www.total.com ) and ConocoPhillips (Houston; www.conocophillips.com) announce the sanction of the Surmont Phase 2 SAGD (Steam Assisted Gravity Drainage) development in Canada. The project, slated to begin initial construction in 2010, will increase Surmont’s production capacity from 27,000 to 110,000 bbl/d of bitumen. Phase 2 is scheduled to begin production in early 2015.    The Surmont project is located approximately 60 km southeast of Fort McMurray, Alberta, in the Athabasca oil sands region. Surmont is operated by ConocoPhillips Canada and is a 50/50 joint-venture with Total E&P Canada.  SAGD is a thermal production technology used to recover bitumen from the oil sands. This process has a limited environmental footprint and relies on well pairs of long horizontal drains. Steam is injected into the upper well to lower the bitumen viscosity in the reservoir. The bitumen mixed with hot water flows to the lower well, from which it is then pumped to the surface. In the surface processing facilities, the water is separated from the bitumen, treated and recycled to the steam generators. The bitumen is diluted and sent by pipeline for upgrading and refining.    For Surmont…
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