Surmont-2’s oil sands deliver

ConocoPhillips’ oil sands mega-project Surmont-2 in northeastern Alberta began producing oil on Wednesday, the company announced.

Production over the next two years will increase to 118,000 barrels of oil per day. Together with the Surmont-1 project, ConocoPhillips plans to produce 150,000 barrels of oil per day.

The Surmont facility is a steam-assisted gravity drainage project, the largest of its kind. The project began in 2010 and produced its first steam earlier this year, signifying that the facility was ready to produce oil.

“The oil sands are an important part of our portfolio,” ConocoPhillips CEO Ryan Lance said in a press release. “We’re pleased to see a project of this magnitude move from the capital phase to the production phase, knowing that it will produce for decades to come.”

The Surmont facilities are a 50-50 joint operation between ConocoPhillips and Calgary-based Total E&P Canada.

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