ConocoPhillips significantly increased its stake in Alberta's oil sands with the completion of the FCCL Oil Sands Partnership agreement with EnCana (now Cenovus Energy) in January 2007, encompassing development of the Foster Creek and Christina Lake properties. In addition to the company's Surmont joint venture with Total and undeveloped resources in the Saleski, Thornbury and Clyden areas, this partnership significantly increases the company's Canadian oil sands resource holdings.
Surmont
Operator: ConocoPhillips (50.0%)
Co-venturer: Total (50.0%)
ConocoPhillips operates the Surmont oil sands project, located in the Athabasca region of northern Alberta, approximately 63 kilometres (35 miles) southeast of Fort McMurray. This multi-phase Steam-Assisted Gravity Drainage (SAGD) project is a 50/50 joint venture between CPC and Total E&P Canada Ltd. The first phase began commercial oil production in October 2007. The second phase, which began construction in 2010, has the potential to bring 83,000 barrels per day online when it reaches capacity, for a project total of 110,000 barrels per day. The Surmont lease has the potential for significant additional future expansions.
FCCL Oil Sands Partnership
Operator: Cenovus Energy (50.0%)
Co-venturer: ConocoPhillips (50.0%)
The FCCL Oil Sands Partnership is a 50/50 upstream partnership between ConocoPhillips and Cenovus Energy. It consists of the Foster Creek and Christina Lake projects, both located on the prolific eastern flank of the Athabasca oil sands in northeastern Alberta. Cenovus Energy operates these two projects on behalf of the FCCL Partnership. As of December 31, 2006, the assets hold approximately 6.5 billion barrels of recoverable oil, and the partnership's goal is to increase production from the current 50 MBD to 400 MBD.
The companies also formed a 50/50 downstream venture operated by ConocoPhillips consisting of the Wood River and Borger refineries.
Other Lands
Operator: ConocoPhillips (100%)
ConocoPhillips also holds other lands in the Thornbury, Clyden and Saleski areas which contain substantial oil sand resource. The geology in these areas is suitable to in-situ production techniques, including SAGD.