Canada-based Husky Energy has started steam operations at the Edam East heavy oil thermal project located 100km east of Lloydminster in Saskatchewan.
The latest project is the first of three new thermal projects that started in 2016. Each plant is expected to create up to 30 permanent jobs and up to 250 jobs in the construction phase.
The Edam East development has the capacity to produce 10,000 barrels per day (bbls/day) with first oil expected early in the second quarter of 2016.
Husky Energy CEO Asim Ghosh said: "Edam East is the latest in our growing suite of heavy oil thermal projects, which are leading our transition into a low sustaining capital business.
"With the addition of Edam East, Vawn and Edam West we expect to add about 24,500 barrels of new production by the end of 2016."
Husky expects to achieve more than 40% overall production from its low sustaining capital projects by the end of 2016.
Production from the company’s 10,000 bbls/day Vawn project and the 4,500 bbls/day Edam West project is set to commence in the third quarter of 2016.
Saskatchewan premier Brad Wall said: "We are working hard to create the Saskatchewan advantage and we are grateful for Husky’s commitment to our province.
"Despite low oil prices, our province’s energy sector continues to attract billions of dollars in new investment."
Husky, which invested $8bn in its Saskatchewan operations since 2010, also operates a heavy oil upgrader and an ethanol plant in Lloydminster.
The company is expected to operate ten plants producing 80,000 barrels of oil per day by the end of 2016.
