International Petroleum Corporation (IPC) has launched the first steam injection for phase one of its fully owned Blackrod oil sands project in Alberta, Canada.
The Canada-based company expects oil production from this phase to start in the third quarter of 2026 (Q3 2026), a quarter earlier than initially expected.
The Blackrod asset is said to contain significant reserves and contingent resources, with regulatory approval permitting production of up to 80,000 barrels of oil per day (bopd).
IPC approved the first phase of development in early 2023. The company aims to achieve plateau production rates of 30,000bopd in this phase, with capital costs forecast at $850m (C$1.17bn).
IPC president and CEO William Lundin said: “We are extremely excited to announce that first steam at the transformational Blackrod Phase 1 development project occurred in December 2025. The warm-up process, through steam circulation, for the initial set of wells is ongoing and we continue to forecast first oil production from Blackrod Phase 1 in Q3 2026.
“The Blackrod Phase 1 development remains on budget with a forecast growth capital expenditure of $850m to first oil. IPC plans to provide further updates on IPC’s forecast production and cash flows at our Capital Markets Day on 10 February 2026.”
The Blackrod project is designed to leverage steam-assisted gravity drainage technology to achieve its production targets.
The central processing facility will possess a steam production capacity of up to 90,000 barrels per day and include a cogeneration plant.
Construction on the oil sands project commenced in 2024.
As of the end of September 2025, IPC had spent approximately $785m, representing around 92% of the planned budget for initial oil extraction.
During Q3 2025, IPC's average net production was approximately 45,900 barrels of oil equivalent per day, surpassing prior forecasts.
This figure comprises mainly heavy crude oil (53%), alongside light and medium crude oil (14%) and natural gas (33%).
Operating costs stood at $17.9 per barrel of oil equivalent during this period.
The average Brent crude price was around $69 per barrel in Q3 2025, a slight increase from the previous quarter's average.
