Devon receives approval for third Jackfish oil sands project

By OGJ editors

Devon Energy Corp. received regulatory approval from the Alberta Energy Resources Conservation Board and Alberta Environment and Water to move forward with the $1.3 billion (Can.) Jackfish 3 steam-assisted gravity drainage (SAGD) project, 15 km southeast of Conklin, Alta.

The company plans to start construction on its wholly owned Jackfish 3 project in January, with startup targeted for late 2014.

Once fully operational, Devon expects Jackfish 3 to produce an average of 35,000 b/d of bitumen before royalties.

Like the Jackfish 1 and 2 SAGD projects, Jackfish 3 holds an estimated 300 million bbl of recoverable bitumen, Devon said.

Jackfish 1, in operation since 2007, continues to produce near facility capacity while Jackfish 2, which started up in June 2011, currently produces 13,000 b/d net, according to Devon.

Devon expects Jackfish 2 to reach full production capacity of 35,000 b/d in late 2012.

Devon notes that the Jackfish projects are specially designed to use saline water rather than fresh water thus minimizing environmental disturbance.

Also Devon last year acquired 50% of BP PLC’s interest in the Pike oil sands leases, adjacent to its Jackfish leases.

The company said the plan is to develop Pike in multiple phases similar to Jackfish, raising bitumen production from Jackfish and Pike to 150,000-175,000 b/d by 2020 from the current 44,000 b/d.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...