Husky Energy starts production at Edam East thermal project

CALGARY, Alberta -- Husky Energy has started production at its Edam East Lloyd Thermal Project in Saskatchewan, the first of three thermal developments scheduled to come online this year.

First oil at the 10,000 bpd development was achieved about seven weeks after the startup of steaming operations.

"Our growing portfolio of heavy oil thermal projects continues to lead Husky's transition into a low sustaining capital business," said CEO Asim Ghosh. "Edam East is another example of the quick ramp ups that we've come to expect from these developments, which have operating costs amongst the lowest in the industry."

Husky's operating costs for its Lloyd thermal product line averaged about $7/bbl, including energy, in the fourth quarter of 2015.

Two additional Lloyd thermal projects are expected to begin production in the third quarter: the 10,000 bopd Vawn project and the 4,500 bopd Edam West project. Husky's total thermal production is expected to reach approximately 80,000 bopd by the end of 2016.

Husky's thermal projects are supported by the Lloyd Value Chain, which originates with the company's extensive resource in the Lloyd area and includes the Saskatchewan Gathering System, the Upgrader and asphalt refinery, and oil storage capacity at Hardisty.