Total’s oil sands projects. Click to enlarge.

Synenco is the operator of this project in the Athabasca region, approximately 100 kilometers northeast of Fort Mc Murray. Sinopec is the holder of the remaining 40% stake through its subsidiary SinoCanada Petroleum Corporation.

In December 2007, Synenco released a Best Estimate of Discovered Resource report on Northern Lights project lands which indicated 1.657 billion barrels of bitumen in place (1.673 billion - 2006), with low and high estimates of 1.043 billion barrels and 2.067 billion barrels (0.984 billion and 2.074 billion - 2006) respectively.

The latest estimate of contingent resources of the Northern Lights Project published by Synenco is 1.08 billion barrels of bitumen; these resources should be recovered using mining technologies. An application for the mining development of the Northern Lights Project was submitted to the Alberta authorities in mid-2006 and is being reviewed.

Synenco, a development-stage company, ran into difficulties in 2007 as the projected cost of building the downstream upgrader climbed 75% to C$6.3 billion.

The Synenco acquisition will add to Total’s portfolio in the Athabasca region which currently is principally the Joslyn project, which is also being developed by mining techniques. (Earlier post.)The Jocelyn project is approximately 50 kilometers from the Northern Lights Project.

Total is the operator of the Joslyn Lease with a 74% interest. The project will be mainly developed using surface mining technologies in two phases of 100 thousand barrels per day (kb/d) each. A limited portion of the lease is already on stream using SAGD technology (Steam Assisted Gravity Drainage). The production potential of the surface mining phases and of SAGD technology is currently estimated at 230 kb/d.

Total also holds a 50% interest in the Surmont lease, located about 60 kilometers southeast of Fort McMurray. Phase One is already producing, has a capacity of 25 kb/d and is expected to reach plateau production by 2012. Phase One development will be followed by Phase Two, which is slated for commercial start-up before the middle of the next decade.

Phase Two will reach plateau production of 75 kb/d, bringing production for both phases of Surmont to approximately 100 kb/d. Future phases at Surmont are also under study.

Total’s share of the aggregate production from Surmont and Joslyn should reach more than 250 kb/d in the next decade.

In addition, the Group has initiated the process to build an upgrader, in the Edmonton area. Phase one of the Total Upgrader should process 150 kb/d of bitumen and could be commissioned before 2015. Phase Two should increase total bitumen processing capacity to more than 200 kb/d.