Canada is home to the world’s third-largest hydrocarbon basin – the oil sands – which equates to 97% of Canada’s oil reserves. This long-term resource offers energy potential – about 1.7 trillion barrels of oil can be recovered, of which 165 billion barrels are in the oil sands.
Alberta is home to the largest of three deposits in Canada – the Athabasca region – which uses technologically advanced production processes such as Steam Assisted Gravity Drainage (SAGD) technology. The Athabasca region is where most of oil sands projects have been developed and it is where CNOOC International’s operations are located. CNOOC International understands that being a responsible energy producer in oil sands is critical to our global economy as oil plays a key role in the current and future energy mix.
Our oil sands development is an important component of CNOOC International’s global portfolio, and the company has an interest in more than 300,000 acres in the Athabasca region
2022 Canadian Sustainability Report
CNOOC International’s Long Lake facility, located in northern Alberta just south of Fort McMurray, began producing in 2008 and is a SAGD-only operation for the interim, with production capacity at around 72,000 boe/d.
In September 2018, company representatives and politicians commemorated the start of construction on Long Lake Southwest, an expansion project that will add 26,000 boe/d from three well pads that will be tied-in to the existing Long Lake facility. The project demonstrates the company’s commitment to the Alberta energy sector and will provide the platform for responsible production growth and reduced emissions. Production from Long Lake Southwest requires less steam and natural gas on a per-barrel basis, equating to less energy used overall.
In addition to our current SAGD operations and Long Lake Southwest, CNOOC International is currently working on a future stand-alone SAGD development in the Kinosis area of Long Lake.
CNOOC International has a 25% non-operating working interest in Hangingstone, a SAGD joint-venture project operated by Greenfire Resources Operating Corporation. Government, Indigenous and industry officials marked the official opening of this project, which produces approximately 20,000 boe/d, in September 2017.
The company also has a 7.23% working interest in the Syncrude oil sands mining and upgrading facility and holds an equity investment in MEG energy. With these holdings and others, we are strategically positioned for future in-situ oil sands development, with land holdings in many Wood Buffalo prospect areas.