Project Profile
Value: US$11 billion (CAPEX)
Location: Alberta, Canada
Start-up year: 2020
Total and its partners Suncor, Occidental Petroleum (Oxy) and Inpex, are considering to revise upward the capacity of its Joslyn oil sand project in Alberta, Canada. The project will use same bitumen mining techniques for the oil sand development and will require equivalent solutions to reduce the environmental impact. Total submitted application for production of 100,000 b/d in Joslyn during 20 years. Of course, project expansions are common practices, but in the case of such oil sand projects using mining process, the ore treatment as well as the environmental protection measures represent a significant fixed capital cost.
In front of these fixed costs, better to maximize production especially since Total is no longer limited by the size of the upgrader. In addition the quality of the bitumen ore in the Joslyn project is not as good as in Fort Hills, therefore Joslyn project will require more capital intensity for the same output than Fort Hills.
Proposed at US$8 billion capital expenditure for 100,000 bpd, Total and its partners are now targeting 150,000 bpd to 160,000 bpd plateau production. If approved, the total investment may ramp up to US$10 or US$11 billion capital expenditure. In this new configuration, Total and its partners, will rework the front end engineering and design (FEED) of the Joslyn oil sand project in aiming at a final investment decision in 2015 for first production by 2020.
The Joslyn North Mine project will feature outstanding environmental management: 85% of the water used in the separation process will be recycled and the site will be gradually reclaimed as mining operations are completed in successive sections.
Operators:
Total: Operator with 38.25% interest
Suncor Energy: 36.75% interest
Oxy Petroleum: 15% interest
Inpex: 10% interest