PetroChina to secure its oil supply chain from Athabasca Fort McMurray to Kitimat, BC
Step by step the China National Petroleum Company (CNPC or PetroChina), is putting in place all the pieces of its upstream puzzle from Athabasca, Alberta oil sands fields to Kitimat, BC.
In January 2012, PetroChina completed the full acquisition of the MacKay River oil sands field from Athabasca Oil Sands Corporation in spending additional $680 million in capital expenditure for the remaining 40% of the field.
The MacKay River and Dover oil sands fields are located in the middle of the oil rich Athabasca in the northeast of Alberta.
The MacKay River field is approximately 28 kilometers northwest of Fort McMurray, Alberta, and the Dover field is 95 kilometers northwest of Fort McMurray, Alberta
In March 2012, PetroChina has expressed interest to submit a competitive bid to build the $5.5 billion Enbridge Northern Gateway oil sands pipeline.
For PetroChina this Northern Gateway oil pipeline project is strategic as it should have a capacity to carry 550,000 b/d oil from northern Edmonton, Alberta to a marine export terminal to be built in Kitimat, BC.
In chasing long term positions in Athabasca Fort McMurray oil sands, in the Northern Gateway oil pipeline and in the Kitimat oil export Terminal, PetroChina consolidates its supply chain to China
WorleyParsons to provide engineering services for MacKay River and Dover oil sands fields
In this context, PetroChina has decided to move ahead on the development of the Mackay River and Dover oil sands projects.
The MacKay River an Dover oil sands fields are located in the middle of the oil rich Athabasca in the northeast of Alberta.
It should be developed in using steam assisted gravity drainage (SAGD) process as in situ oil recovery method.
Under SAGD, oil sands companies inject steam underground to melt thick tar-sands deposits.
The melting oil is then collected through a second pipeline and pumped up to the surface.
The MacKay River should produce 150,000 b/d of bitumen to be reached in phases.
At the phase one PetroChina is aiming at 35,000b/d bitumen.
The MacKay River project should include:
– Central processing facility
– Well pad
– Water source and disposal wells
– Pipelines and utility corridors
The Dover project will consist of:
– Two processing facilities
– Associated infrastructure such as steam generation and distribution
– Oil/water separation
– Water treatment
– Oil field gathering system
In the contracts signed with PetroChina, WorleyParsons will provide for:
– Mackay River: engineering and procurement services to build well pad facilities at the oil field.
The construction of the MacKay River and Dover projects will begin on second half 2012 as PetroChina expects the completion of the project and operations to start up in 2014 with the support of WorleyParsons.