OPTI Canada Inc. announced that the first phase of construction of its Long Lake project is nearly complete and the production of premium synthetic crude is anticipated by mid-2008.
Plant uses petroleum coke as gas substitute for production
OPTI Canada Inc. announced that the first phase of construction of its Long Lake project is nearly complete and the production of premium synthetic crude is anticipated by mid-2008.
Calgary-based OPTI Canada Inc. (OPTI) was established in 1999 to develop integrated bitumen and heavy oil projects in Canada. OPTI, in a 50/50 joint venture with Nexen Inc., is building Phase 1 of the Long Lake project, which will produce high-quality synthetic crude oil from the oilsands.
The Long Lake lease is located approximately 42 kilometres southeast of Fort McMurray in the Athabasca oil sands region of northern Alberta, and spans more than 25,382 hectares (98 sections) of land.
The Long Lake project is unique because it uses petroleum coke, a common byproduct of production, as a substitute for natural gas to turn bitumen into synthetic crude oil.
The development has been plagued by cost overruns with a project budget now expected to reach $6.1 billion.
“2007 was a challenging year as we worked through cost increases and delays primarily related to the heated construction market. We are pleased to now have most of Phase 1 construction behind us with start-up and commissioning activities well underway,” said Sid Dykstra, president and chief executive officer of OPTI.
“In 2008 we anticipate first production of our light sweet synthetic crude, a significant milestone in our Company’s history and a culmination of the hard work of our employees and contractors over the past several years.”
One of the key developments for this project in 2007 was the completion of construction and start-up of the steam assisted gravity drainage (SAGD) facilities.
SAGD technology allows bitumen to be recovered from oil sands deposits deemed impractical for surface mining and extraction methods. However, it is not deep enough for high-pressure steam techniques to work.
SAGD involves drilling two parallel horizontal wells, generally between 2,300 and 3,300 feet long, with about 16 feet of vertical separation.
Steam is injected into the shallower well, where it heats the bitumen that then flows by gravity to the deeper producing well.
First steam injection of the SAGD operation began in mid-April 2007.
It is anticipated that SAGD volumes will ramp-up to full capacity over a 12 to 24 month period.
When fully operational, Phase 1 of the Long Lake Project is expected to produce 72,000 bbl/d of bitumen, which will translate to 58,500 bbl/d of high quality crude oil.
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