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Occidental Petroleum to Acquire 15% Interest in Joslyn Oil Sands Project
24 June 2008
Occidental Petroleum Corporation is purchasing a 15% interest in the Joslyn Oil Sands Project in Alberta, Canada from Enerplus Resources Fund for C$500 million (US$491 million).
Operated by Total, the Joslyn project holds more than 8 billion barrels of bitumen in place and the recoverable reserves, net to Occidental, are estimated at 370 million barrels. (Earlier post.) While the project is still in the early stage of development, it currently has more than 1,800 delineation wells drilled to date to confirm the resource potential.
The project is being developed by steam assisted gravity drainage (in process) and surface mining. Occidental expects to spend approximately $2 billion over a number of years to develop the reserves. Production, net to Occidental, from the mining operation is expected to commence in 2014 at approximately 11,000 barrels of oil per day (bopd) and grow to a plateau of approximately 31,000 bopd.
Closing of this transaction is expected in the third quarter of 2008 and is subject to government approvals.
Oxy is the fourth largest US oil and gas company, based on equity market capitalization.
June 24, 2008 in Brief | Permalink | Comments (2) | TrackBack (0)
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Posted by: HarveyD | June 24, 2008 at 07:13 AM
This seems to be an abnormally small operation. Underestimated very small extraction numbers may be use not to attract to much public attention. Open strip mining is some dirty bussiness that is better kept from the world press.
The average neigbouring plants are about 10 times that size? Soomething as small as this announced project is not very profitable. Total and Oxy are in for much more.
Posted by: HarveyD | June 24, 2008 at 07:13 AM
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This seems to be an abnormally small operation. Underestimated very small extraction numbers may be use not to attract to much public attention. Open strip mining is some dirty bussiness that is better kept from the world press.
The average neigbouring plants are about 10 times that size? Soomething as small as this announced project is not very profitable. Total and Oxy are in for much more.