Husky starts steam operations at Edam West thermal project

CALGARY, Alberta -- Husky Energy has commenced steam operations at the 4,500 bopd Edam West thermal project in Saskatchewan, its third thermal development to be brought online this year.

The 10,000 bpd Edam East thermal project, which achieved first oil in April, is now producing above its design rate at approximately 11,000 bpd. At the 10,000 bopd Vawn development, first production has started approximately six weeks after steaming began.

"Thermal technology has turned our heavy oil business into a resilient growth engine, with some of the lowest operating costs in the industry at about $7/bbl,” said CEO Asim Ghosh.

Husky is leveraging its growing thermal expertise at the Tucker thermal project near Cold Lake, Alberta, where production is now approximately 22,000 bopd. Combined production from Lloyd thermals and Tucker is now 85,000 bopd and is expected to exceed 100,000 bopd in the second half of 2016.

By the end of this year, more than 40% of Husky's overall production is expected to come from low sustaining capital projects, including its thermal projects, compared to just 8% in 2010.