Statoil presents oil sands production report for 2013

Source:Statoil

Statoil presents oil sands production report for 2013 Statoil’s oil sands production decreased slightly in 2013. CO2 intensity rose due to facility maintenance and the integration of pilot technologies to reduce long-term CO2 intensity. Statoil’s 2020 CO2 intensity reduction target of 25% remains firm.

The 2013 Oil Sands Report presents performance indicators for production, energy consumption, emissions intensity and resource use at the Leismer Demonstration Project and in the Kai Kos Dehseh (KKD) leases in northern Alberta.

As indicated in the 2012 report, production was expected to decrease slightly in 2013 due to a planned multi-week plant shutdown for facility maintenance and the integration of new scientific research and experimental development measures.

These technology pilot measures are intended to both increase production and decrease CO2 intensity in the long term.

Production decreased from 16,000 barrels of oil per day in 2012 to 15,000 barrels of oil per day in 2013. CO2 intensity increased from 55.6 kg CO2/barrel to 69.7 kg CO2/barrel. The CO2 intensity in 2011 was 72.7 kg CO2/barrel.

“Our long-term CO2 targets for reduced carbon dioxide intensity in the production process with 25% by 2020 and 40% by 2025 remain firm,” says Statoil Canada country manager and senior vice president Ståle Tungesvik.

The increase in CO2 intensity was anticipated due to two primary operational factors:
- More steam was utilised in 2013 when a fourth steam generator was added to support new well pads and our current production wells.
- We experienced an imbalance in the reservoir after a planned maintenance period. As a result, production levels were lower and steam use higher than usual—and this impacted our overall CO2 intensity rate.

“In 2013 we introduced new technologies to help further our ambitions. These include solvent co-injection, which has the potential to reduce the amount of steam and water used to produce a barrel of bitumen,” Tungesvik says.

Carbon dioxide intensity is expected to decrease as operations normalise and additional technology is introduced. However, in the near term, the CO2 intensity for Leismer may be higher than the projected segment target.

“Statoil’s technology plan remains on course. We have identified a group of 14 technologies we aim to test and deploy over the next five to 10 years. A number of these technologies support our strategy to reduce CO2 emissions at their source,” says Tungesvik.

2013 demonstrated Statoil’s commitment to safety and the positive results of programs implemented in previous years with no serious health, safety and environmental incidents and no lost-time injuries.

Results of the first full year of Statoil’s surface water monitoring program showed no indication that the development of the Kai Kos Dehseh leases is having an effect on the natural water cycle of lakes and rivers monitored on our leases.

Production at Leismer began in January 2011 and is a steam-assisted gravity drainage (SAGD) facility. In January 2014, Statoil and the Thai exploration and production company PTTEP signed an agreement to divide their respective interests in the Kai Kos Dehseh (KKD) oil sands project.

Following the transaction, Statoil will continue as operator and 100% owner for the Leismer and Corner development projects. PTTEP will own 100% of the Thornbury, Hangingstone and South Leismer areas.

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