Husky going ahead with two new heavy oil projects at Lloydminster

Husky Energy Inc. has given the green light to two new heavy oil projects in Saskatchewan that will together churn out 20,000 barrels of crude per day.

CALGARY — Husky Energy Inc. has given the green light to two new heavy oil projects in Saskatchewan that will together churn out 20,000 barrels of crude per day.

Engineering is underway on the Edam East and Vawn projects with construction set to begin later this year.

First oil is expected in 2016.

The company (TSX:HSE) says the projects build on the success it’s had in the Lloydminster region, near the Alberta border, using heat to get the thick crude out of the ground.

Husky says the two projects are part of the company’s plan to produce 55,000 barrels per day from its thermal heavy oil projects by 2016 — a year sooner than a target set out in December 2012.

Husky is majority-owned by Hong Kong billionaire Li Ka-shing and has a 2014 capital budget of $4.8 billion.

“Three years ago, with heavy oil production fighting to remain flat, we implemented a strategy to transform and rejuvenate the business. We are seeing the results of that today,” CEO Asim Ghosh said in a release.

“Steady performance from our existing thermal facilities and these two new plants, along with projects currently under construction at Sandall and Rush Lake, will add another 33,500 barrels per day of new production over the next three years, more than offsetting declines in non-thermal production.”

Just Posted

Alberta’s status of women minister joins Twitter debate over women’s marches

EDMONTON — A minister in Alberta’s NDP government has chastised a tweet… Continue reading

Canada faces angry Americans in pivotal sixth round of NAFTA talks

Canada will be hosting an annoyed and angry United States as the… Continue reading

Arts and Craft (Beer) evening set for Feb. 3

Raising money for Red Deer Arts Council

‘Hobbit’ director Peter Jackson making WWI documentary

LONDON — “The Lord of the Rings” director Peter Jackson is transforming… Continue reading

Hot summer ticket: $130K could get you on a dive to the Titanic off Newfoundland

ST. JOHN’S, N.L. — Are you a risk-taking adventurer with $130,000 to… Continue reading

WATCH news on the go: Replay Red Deer Jan. 21

Watch news highlights from Red Deer and Central Alberta

Two Canadians, two Americans abducted in Nigeria are freed

Kidnapping for ransom is common in Nigeria, especially on the Kaduna to Abuja highway

WATCH news on the go: Replay Red Deer Jan. 21

Watch news highlights from Red Deer and Central Alberta

Liberals quietly tap experts to write new paternity leave rules

Ideas include creating an entirely new leave benefit similar to one that exists in Quebec

Insurers say Canadian weather getting hotter, wetter and weirder

Average number of days with heavy rain or snow across Canada has been outside norm since spring 2013

Are you ready for some wrestling? WWE’s ‘Raw’ marks 25 years

WWE flagship show is set to mark its 25th anniversary on Monday

VIDEO: Thousands join women’s march events across B.C.

Today marks one year since the first Women’s March on Washington

In photos: Get ready for Western Canadian Championships

Haywood NorAm Western Canadian Championships and Peavey Mart Alberta Cup 5/6 start… Continue reading

WATCH: Red Deer city council debates cost-savings versus quality of life

Majority of councillors decide certain services are worth preserving

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month