Nexen Energy announced it will go ahead with the $400 million Long Lake Southwest expansion project located southeast of Fort McMurray, Alberta.  Nexen photo.

Long Lake Southwest expansion project will add 26,000 b/d production

Nexen Energy announced it will go ahead with the $400 million Long Lake Southwest expansion project at its SAGD facility located southeast of Fort McMurray in the Alberta oil sands.

The project has been granted approval by the Alberta Energy Regulator. and once complete, will add 26,000 barrels per day of production from three well pads that will be tied in to the company’s existing Long Lake oil sands facility.

According to Nexen, the Long Lake Southwest project will bring into production a number of lower steam-to-oil ratio wells which will significantly improve Long Lake’s greenhouse gas reduction performance.

Nexen, a¬†subsidiary of Chinese state-owned China National Offshore Oil Co. Ltd. (CNOOC), says the decision affirms CNOOC’s long-term confidence in the Alberta energy sector.

“We remain committed to growing our Canadian production profile, and our oil sands assets are an important component of this strategy”, the company wrote in a press release.

As well, the company says the project helps the Alberta government achieve its climate objectives.

Construction on the project is expected to begin shortly and a company spokeswoman told CTV News that site preparation had already begun.

First oil is anticipated by late 2020.

Currently, the Long Lake oil sands facility produces about 41,000 barrels of bitumen per day, according to GMP FirstEnergy.