Oil­sands project closed due to wild­fire won’t be restarted: Japex

Cape Breton Post - - Business -

CAL­GARY - Ja­pan Petroleum Ex­plo­ration Co., has de­cided against restart­ing an oil­sands pi­lot project that was shut last year dur­ing the wild­fires near Fort McMur­ray, Alta. Also known as Japex, the com­pany says it has de­cided to aban­don the project due to low oil prices and tech­ni­cal risks of restart­ing the steam-in­jec­tion wells to al­low the heavy, sticky oil to flow.

The pi­lot project had been in op­er­a­tion through a sub­sidiary called Ja­pan Canada Oil Sands Ltd. since 1999 and pro­duced a cu­mu­la­tive total of 35 mil­lion bar­rels of bi­tu­men. Mean­while, Ja­pan Canada Oil Sands has been steam­ing a com­mer­cial oil­sands project in the same area since April and re­ports that it has achieved first oil pro­duc­tion. The com­pany, which owns 75 per cent of both projects, says its Hang­ing­stone com­mer­cial project is pro­duc­ing about 1,000 bar­rels per day and will grad­u­ally ramp up to ca­pac­ity of 20,000 bpd by the sec­ond half of 2018. The projects are 25 per cent owned by Nexen En­ergy, a sub­sidiary of China Na­tional Off­shore Oil Corp. or CNOOC.

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