Husky OKs $2.5B oilsands project

[Shaun Polczer – Calgary Herald – Calgary] Smaller firm seeks approval for project near Cold Lake

In another sign the oilsands sector is regaining momentum, Husky Energy Inc. on Wednesday said it is ready to go ahead with the $2.5-billion Sunrise oilsands project in northern Alberta.

The company has received necessary regulatory approvals to proceed with the project later this year. Husky said the final price tag is more than $1 billion less than its original estimate of $3.8 billion to $4 billion.

“Under the current market environment and the applied facility design for Phase 1, the Sunrise oilsands project has been able to achieve a solid sustainable economic return,” CEO John Lau said in a statement.

Pending formal sanction by Husky and partner BP, construction is scheduled to begin in the second half of 2010, with first oil expected in 2014. The initial first phase is expected to produce 60,000 barrels per day, ramping up 200,000 bpd by 2020.