Oil Sands SAGD Project Produces First Oil
CALGARY, Dec. 11 /CNW/ - ConocoPhillips (NYSE: COP) and Total E&P Canada
(wholly owned subsidiary of Total, TOTF.PA) today announced the startup of
commercial production in the first phase of their Surmont Project joint
venture, which occurred in mid-October. Phase One of the project has a
capacity of 25,000 barrels per day (bpd) and is expected to reach peak
production by 2012.
The Surmont project is located about 60 kilometers southeast of Fort
McMurray in Alberta's oil sands. ConocoPhillips is the operator of the 50-50
joint venture with Total. Phase One development will be followed by a second
phase slated for commercial start-up before the middle of the next decade. The
completion and full ramp-up of Phase Two is expected to bring total peak
production for both phases to approximately 100,000 bpd. Future phases at
Surmont are also under study.
"We're very pleased to have reached this important milestone," said Matt
Fox, senior vice president Oil Sands for ConocoPhillips Canada. "Development
of the oil sands is a key element of our corporate strategy to increase
production from unconventional energy sources, which will be essential in
meeting future energy demand. The Surmont development is an important part of
"The Surmont Project is a key part of Total's integrated strategy for the
oil sands," said Michael Borrell, president of Total E&P Canada Ltd. "Our
share of production from Surmont plays an important role in our integrated
production and upgrading plans in Alberta."
The initial Surmont pilot project began in 1997. In 2003, the joint
venture decided to launch the first phase of commercial development at Surmont
using Steam Assisted Gravity Drainage (SAGD). First steam was injected into
the ground in June 2007 at Phase One, resulting in the first commercial
production announced today.
"Our goal was the safe start-up of commercial production at Surmont," Fox
said. "We've achieved that goal and now we will focus on reaching peak
production at Phase One and moving on to Phase Two."
ConocoPhillips (COP) is an integrated petroleum company with interests
around the world. Headquartered in Houston, the company had approximately
32,500 employees, $173 billion of assets, and $180 billion of annualized
revenues as of September 30, 2007. For more information, go to
ConocoPhillips Canada (CPC) is one of the country's largest oil and
natural gas production and exploration companies. Headquartered in Calgary,
Alberta, CPC is a top three producer of natural gas in the country, with a
world-class portfolio including assets in western Canada, the Arctic and
Atlantic Canada, as well as oil sands interests near Fort McMurray, Alberta.
ConocoPhillips has several interests in Alberta's oil sands in addition
to the Surmont Project, including a nine per cent interest in Syncrude; the
FCCL Partnership - a 50/50 upstream partnership between ConocoPhillips and
EnCana consisting of the Foster Creek and Christina Lake projects; and other
significant leaseholdings in the region.
Total is one of the world's major oil and gas groups, with activities in
more than 130 countries. Its 95,000 employees put their expertise to work in
every part of the industry - exploration and production of oil and natural
gas, refining and marketing, gas trading and electricity. Total is working to
keep the world supplied with energy, both today and tomorrow. The Group is
also a first rank player in chemicals. www.total.com
Total, through its wholly owned subsidiary, Total E&P Canada Ltd., has
significant interests in the Athabasca oil sands including: interest in the
Surmont project, planned mining operations at its Joslyn lease, additional
exploration leases, and plans for an upgrader east of Edmonton, to be located
in Alberta's industrial heartland.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements within the meaning
of the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are statements that contain
projections about revenues, income, earnings and other financial items, plans
and objectives for the future, future economic performance, or other
projections or estimates about assumptions relating to these types of
statements. These statements usually relate to future events and anticipated
revenues, earnings, business strategies, competitive position or other aspects
of operations or operating results. In many cases you can identify
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"goal," "guidance," "outlook," "effort," "target" and other similar words.
However, the absence of these words does not mean that the statements are not
forward-looking. The forward-looking statements are based on the expectations,
estimates and projections of ConocoPhillips and Total about their respective
businesses and industries in general on the date this statement was released.
These statements are not guarantees of future performance and involve certain
risks, uncertainties and assumptions that are difficult to predict. Further,
certain forward-looking statements are based on assumptions as to future
events that may not prove to be accurate. Therefore, actual outcomes and
results may differ materially from what is expressed or forecast in such
forward-looking statements. Economic, business, competitive and regulatory
factors that may affect ConocoPhillips' and Total's business are generally as
set forth in their filings with the Securities and Exchange Commission (SEC).
Neither ConocoPhillips nor Total are under any obligation (and expressly
disclaim any such obligation) to update or alter these forward-looking
statements whether as a result of new information, future events or otherwise.
For further information:
For further information: CONOCOPHILLIPS CANADA: Julie Baron, Senior
Communications Advisor, Telephone: (403) 233-3966, Email:
firstname.lastname@example.org; TOTAL E&P CANADA LTD.: Derek Rogers,
Communications Advisor, Telephone: (403) 538-8153, Email: