Ikelic - Alliance Digital Repository

STATUS OF OIL SANDS PROJECTS (Underline denotes changes since June 1994)
COMMERCIAL PROJECTS (Continued)
By mid-1988 production had dropped 22 percent below 1987 levels. Following a change of strategy
in operation of the reser
voir, however, production had increased to 1,030 cubic meters per day in 1989 and 1,147 cubic meters per day in 1990. Continu
ing the trend, 1991 will see an average production rate of 1,167 cubic meters per day.
In 1987, a program designed to expand production by 2,400 cubic meters per day to 3,700 cubic meters per day, total bitumen
production was initiated. Wolf Lake 2 was originally expected to be completed in mid-1989.
In early 1989, BP Canada and Petro-Canada delayed by 1 year the decision to start up the second phase. While the Wolf Lake
2 plant was commissioned in 1990, full capacity utilization of the combined project is not likely before the late 1990s when it is
expected that higher bitumen prices will support the expanded operation and further development.
The new water recycle facilities and the Wolf Lake 2 generators are operational. Production levels will be maintained at 600 to
700 cubic meters per day until bitumen netbacks have improved. The Wolf Lake 2 oil processing plant and Wolf Lake 1 steam
generating facilities have been suspended.
In September 1989, Wolf Lake production costs were reported to be almost C$22 per barrel, while bitumen prices fell to a low
of C$8.19 per barrel in 1988. BP initiated a program to reduce Wolf Lake costs, which included laying off 120 workers, making
improvements in process efficiency, and operating the plant at about 50 percent of capacity.
operating costs to C$10 to 12 per barrel.
These economic measures cut
In 1991, Wolf Lake production costs were less than $9 per barrel, and bitumen production averaged 4,225 barrels a day.
In early 1992, BP Canada and Petro-Canada sold their entire interests in the project to Amoco Canada Petroleum. No price
was disclosed but both companies have written off their total $370 million investment in the project.
Project Cost: Wolf Lake 1
$114 million (Canadian) initial capital
(Additional $750 million over 25 years for additional drilling)
Wolf Lake 2
$200 million (Canadian) initial capital
YAREGA MINE-ASSISTED PROJECT- Union of Soviet Socialist Republics (T-265)
The Yarega oilfield (Soviet Union) is the site of a large mining-assisted heavy oil recovery project. The productive formation
of this field has 26 meters of quartz sandstone occurring at a depth of 200 meters. Average permeability is 3.17 mKm . Tem
perature ranges from 279 to 281 degrees K; porosity is 26 degrees; oil saturation is 87 percent of the pore volume or 10 percent
by weight. Viscosity of oil varies from 15,000 to 20,000 mPa per second; density is 945 kilograms per cubic meter.
The field has been developed in three major stages. In a pilot development, 69 wells were drilled from the surface at 70 to
100 meters spacing. The oil recovery factor over 11 years did not exceed 1.5 percent.
Drainage through wells at very close spacing of 12 to 20 meters was tested with over 92,000 shallow wells. Development of the
oilfield was said to be profitable, but the oil recovery factor for the 18 to 20 year period was approximately 3 percent.
A mining-assisted technique with steam injection was developed starting in 1968. In 15 years, 10 million tons of steam have
been injected into the reservoir.
Three mines have been operated since 1975. An area of the deposit covering 225 hectares is under thermal stimulation. It in
cludes 15 underground slant blocks, where 4,192 production wells and 11,795 steam-injection wells are operated. In three un
derground slant production blocks, oil recovery of 60 percent and higher has been reached. Construction of 4 new shafts is ex
pected to bring production to over 30,000 barrels per day. Forty-one million barrels of oil were produced during the period
1975-1987. A local refinery produces lubricating oils from this crude.
Project Cost: Not Disclosed
3-43
SYNTHETIC FUELS REPORT, JANUARY 1995