Sunrise Energy Project

sunrise energy projectLocation: Fort McMurray, Alberta

Key Players: Husky Energy Inc; BP PLC

Located 60 kilometers northeast of Fort McMurray, Sunrise is a world-class bitumen deposit with estimated total probable and possible reserves of 3.7 billion barrels (100 percent) as of December 31, 2008. The McMurray formation is up to 100 meters thick on portions of the Sunrise lease. On January 1, 2008, Husky entered into an agreement with BP to establish an upstream and downstream solution for the production, refining and marketing of bitumen from Sunrise. Under the agreement, Husky traded 50 percent of the Sunrise oil sands holdings for 50 percent of BP’s refinery near Toledo, Ohio, U.S.A. BP will continue to operate the refinery and Husky will operate the Sunrise project.

An environmental impact assessment and conceptual study for the surface facilities was initiated in 2002. Husky submitted its public disclosure document to the Alberta Energy and Utilities Board (now the Energy Resources Conservation Board) and Alberta Environment in February of 2004. In August 2004, Husky submitted a commercial application to provincial regulators. Regulatory approvals for the phased development of a 200,000 bbl/day SAGD project were obtained in December 2005. Further amendments for optimization and updating of the project have been submitted to regulators and received approval in 2009. Optimization of the overall facility and engineering designs will continue as the facility is developed. First phase of oil production is expected four years from project sanction.