CALGARY, AB –(Marketwired – March 01, 2016) – Husky Energy (TSX: HSE) has commenced steam operations at the Edam East heavy oil thermalproject in Saskatchewan, the first of three new thermal projects coming online this year.
The 10,000 barrels per day (bbls/day) Edam East development is expected to produce first oil early in the second quarter.
“Edam East is the latest in our growing suite of heavy oil thermal projects, which are leading our transition into a low sustaining capital business,” said CEO Asim Ghosh. “With the addition of Edam East, Vawn and Edam West we expect to add about 24,500 barrels of new production by the end of 2016.
“With fast build times and quick ramp ups, these projects typically surpass their nameplate capacity in their early years and the operating costs are amongst the lowest to be found anywhere in the industry.”
The Lloyd thermal projects are a key component of the Company’s ongoing transition into a low sustaining capital business. By the end of 2016 more than 40 percent of overall production is expected to come from low sustaining capital projects compared to just eight percent in 2010.
The 10,000 bbls/day Vawn development and the 4,500 bbls/day Edam West project are set to begin production in the third quarter of 2016.
Husky’s integrated Downstream operations further support its thermal business. The Lloyd heavy oil value chain 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.
Husky Energy is one of Canada’s largest integrated energy companies. It is headquartered in Calgary, Alberta, Canada and its common shares are publicly traded on the Toronto Stock Exchange under the symbol HSE. More information is available at