“This is the second of three thermal projects we will be commissioning this year,” said CEO Asim Ghosh. “We are ahead of schedule and under budget with Vawn, an indication of our growing expertise in developing these thermal projects.
“These developments are leading our transition into a low sustaining capital business, with among the lowest operating costs in the industry.”
The 10,000 barrels per day (bbls/day) Vawn development is expected to produce first oil early in the third quarter.
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 Edam East development began production in mid-April. The 4,500 bbls/day Edam West project is 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 www.huskyenergy.com