EnCana Seeks Regulatory Nod To Expand Oil Sands Project
March 27 2009 - 12:08PM
Dow Jones News
EnCana Corp. (ECA) and ConocoPhillips (COP) are seeking approval
from environmental regulators in Canada for a 120,000-barrel-a-day
expansion of their joint Christina Lake oil sands project in
northern Alberta.
The two companies aim to boost the project's output limit to
218,000 barrels a day in three development phases, using steam to
soften the tarry oil sands bitumen and pump it to the surface,
according to documents filed with the province's environment
ministry.
There were no details regarding the proposed schedule or budget
for the expansion.
Christina Lake is the smaller of two oil sands developments
forming part of the joint venture that EnCana and ConocoPhillips
inked in 2006. The deal swapped equity in EnCana's oil sands assets
for stakes in two of ConocoPhillips' refineries in Illinois and
Texas.
Current production at Christina Lake is around 14,000 barrels a
day and work has started to boost this by 40,000 barrels a day. The
companies also plan to double output at the Foster Creek oil sands
development this year to 120,000 barrels a day.
Both EnCana and ConocoPhillips have cut back their spending
plans for 2009 after oil and natural gas prices plummeted from last
summer's highs.
-By Hyun Young Lee, Dow Jones Newswires; 613-237-0669;
hyunyoung.lee@dowjones.com