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September 10, 2013
Toyo lands EPC contract for oil-sands SAGD facilities in Canada
Toyo Engineering Corp. (Toyo; Chiba, Japan; www.toyo-eng.co.jp), through its Canadian subsidiary Toyo Engineering Canada Ltd., has signed a contract to provide engineering, procurement and construction (EPC) service to Japan Canada Oil Sands Ltd. (Jacos), a subsidiary of Japan Petroleum Exploration Co., Ltd. (Japex), for its Oil Sands Bitumen Production steam-assisted gravity drainage (SAGD) central processing facilities and utilities and infrastructure at Hangingstone area (50 km south west from Fort McMurray) in Alberta, Canada. The completion of the facility is targeted 2.5 years after the contract.
Jacos is currently producing 6,000–7,000 barrel per stream day (BPSD) of bitumen at Hangingstone area. This is their first time to construct and operate full commercial scale SAGD facilities, and the investment will be jointly made with Nexen Energy ULC, a wholly-owned subsidiary of CNOOC Ltd., having 25% stake in this project.
Bitumen production from in-situ projects (bitumen is separated from the sand underground) is surpassing the production from mining projects. Most of future oil sands development projects are planned to apply in situ, with majority of SAGD technology, and the EPC market for these facilities expected to have a long-term growth.