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Norway-based Statoil defers the SAGD Corner Oil Sands Project

Norway-based Statoil defers the SAGD Corner Oil Sands Project

Norway-based Statoil announced this week that is has officially shelved the Corner project for now. The deferral will result in a staff reduction of approximately 70 employees. The company cites rising labour costs and concerns over limited pipeline capacity in its decision to defer capital spending in the project. The Corner project was expected to produce 40,000 barrels per day once fully operational. The company did not disclose capital costs for the project.

The Corner lease is located immediately northeast of the Leismer lease on the east side of Highway 63.

Statoil was in partnership with the Thai exploration and production company PTTEP but recently swapped Canadian assets in January of this year. Under the new agreement, Statoil took 100% ownership of both the Leismer and Corner leases, leaving the Hangingstone, Thornbury and South Leismer leases to PTTEP.

The Leismer SAGD facility is currently in operation and has a total capacity 20,000 barrels per day. Well pad 5 came on stream in August. The company noted that the deferral of Corner will not impact the Leismer project ramp up.

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