OREANDA-NEWS. Husky Energy has commenced production at the Rush Lake heavy oil thermal project in Saskatchewan. First oil at the 10,000 barrels per day (bbls/day) development was achieved eight weeks following the startup of steaming operations and just two years after project sanction.

"Rush Lake joins an expanding lineup of thermal projects that are providing solid returns even in a low oil price environment," said CEO Asim Ghosh. "Our proven thermal formula can deliver these projects with greater cost and execution certainty, rapid ramp ups and low sustaining costs."

The project is expected to reach its nameplate production capacity around the end of 2015.

Current production from thermal projects is approximately 44,000 bbls/day. Including Rush Lake, the Company expects to add another 34,500 bbls/day over the next 18 months as it further advances its low-risk, modular construction templates and thermal technologies.

Additional thermal projects in the Lloydminster region are being evaluated, with three near-term projects currently under construction:
* The 10,000 bbls/day Edam East project is expected to start up in the third quarter of 2016.
* The 4,500 bbls/day Edam West thermal development is due to commence production in the fourth quarter of 2016.
* The 10,000 bbls/day Vawn project is scheduled to come onstream in the fourth quarter of 2016.

Husky's growing heavy oil thermal business is supported by its integrated Downstream business, which includes the Lloydminster Upgrader, asphalt refinery, the expanded South Saskatchewan pipeline gathering system and increased storage capacity at Hardisty, Alberta.