OREANDA-NEWS. Imperial Oil is taking a long view on oil sands development, filing an application for a new 50,000 b/d project on its Cold Lake lease area in northern Alberta.

The integrated producer, majority owned by ExxonMobil, said it will use solvent-assisted thermal technology to tap into the Grand Rapids bitumen formation, reducing energy and water use and cost.

The Cold Lake expansion project that Imperial filed with the Alberta Energy Regulator could see construction start by 2019, with first production by 2022, the company said.

Advancement of the project will not depend on current crude prices but rather regulatory approvals, favorable market conditions and that the project proves economically competitive, an Imperial Oil spokesperson said.

"We've been working on this project for more than a year and take a long-term approach to resource development," she said.

Other oil sands developments Imperial is considering includes the Aspen, Corner and Clyden leases in northeast Alberta.

Investment in Canada's oil sands industry is expected to drop by 35pc this year as companies seek refuge from dramatically reduced oil prices. At least 17 planned developments have been delayed or cancelled since 2015. Analysts estimate new projects need an average Brent crude price of about $80/bl to be viable, although existing production, particularly from thermal operations, can be commercial around $40/bl.