Imperial Oil seek approval for $2bn Canadian oilsands project

Imperial Oil seek approval for $2bn Canadian oilsands project

Imperial Oil has announced plans for a new US$2 billion oilsands project on its Cold Lake lease in Canada.

As one of the largest oil and gas companies in Canada, Imperial Oil revealed it had filed regulatory applications with the Alberta Energy Regulator to seek approval for the project.

The proposed plans for Cold Lake will use solvent-assisted, steam-assisted gravity drainage (SA-SAGD) to access potentially 50,000 barrels per day of bitumen.

However, Imperial spokesperson Lisa Schmidt said the development of the project is not guaranteed.

“This is a preliminary and very important step in the regulatory process,” Schmidt said on Friday.

“Overall, we take a long-term approach to resource development, and an ultimate investment decision will be based on a variety of factors including regulatory approvals, market conditions and economic competitiveness.”

Based on Imperial’s research and pilot results, SA-SAGD technology is expected to reduce greenhouse gas emissions by 25 per cent and reduce water usage by the same amount.

The Cold Lake expansion is one of a group of oilsands opportunities the company is currently evaluating. Other developments include the Aspen, Corner and Clyden leases in Alberta.