Joint-venture partners Nexen Inc. and OPTI Canada Inc. have received approval from the Alberta Energy and Utilities Board (EUB), and legislative assent from the Province of Alberta to proceed with the CAD 3.0 billion Long Lake oil sands project. The Long Lake Project, located 40km SE of Fort McMurray in northern Alberta, is a 50/50 joint venture of OPTI and Nexen. The first phase of the project consists of 70,000 barrels per day of steam-assisted gravity drainage oil production, integrated with an upgrading facility using patented OrCrude(TM) upgrading technology combined with commercially available hydrocracking and gasification. The Long Lake lease has a long reserve life, will provide steady cash flow, and has ample capacity to expand beyond this first phase of the project. The project will produce an end product of 38-degree API premium synthetic crude with very low sulphur content, making it a highly desirable refinery feedstock. Production from the Long Lake Project is planned to start in 2006 with the upgrader commencing operation in 2007.
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