Surmont reaches a milestone with first oil at Pad 267

BY KATE MACCOMB

Surmont, located in northeastern Alberta, is a valuable part of ConocoPhillips’ global portfolio. This unique asset produces bitumen from Canada’s oil sands using Steam-Assisted Gravity Drainage (SAGD).

Construction began in 1997 with a small SAGD pilot, and over the years Surmont has grown into an established asset. In 2022, net production at Surmont reached 66,000 barrels of oil equivalent per day. 2023 was a historical year for ConocoPhillips Canada as the company acquired the remaining 50% working interest in Surmont in October for complete ownership of the asset; this was followed closely by the long-awaited declaration of first oil at Pad 267 in December.

In 2014, the Surmont team began the design of Pad 267, which consists of 24 well pairs. After several years of challenges, along with multiple iterations and designs to lower its cost of supply, Pad 267 received its highly anticipated approval in the latter half of 2021.

From there, the Surmont team worked diligently to achieve first steam at this well pad, and subsequently, first oil. That day came in December 2023, when first oil from drainage area 267-1 was declared on the first 12 well pairs. These first drops of bitumen marked a monumental milestone for the asset. Following this in February 2024, first oil from drainage area 267-3 was declared on the second 12 well pairs.

“This well pad is central to our Surmont asset,” said ConocoPhillips Canada President Bij Agarwal. “Not only is it our first major milestone following the full ownership of Surmont, it also represents the restart of Surmont’s development plan.”

The journey to first oil confirmation involved several steps. First, the Surmont team applied differential pressure between the injector well (where the steam is injected) and the producer well (where the bitumen and water flow to the surface). Next, they closely monitored the system for signs that the well pad was on its way to producing oil. To officially declare the milestone, the team obtained a sample and conducted testing to confirm the presence of bitumen.

Pad 267 will optimize steam use and drainage efficiency. This pad marks the restart of Surmont development with the goal of bringing a new well pad into production every 13 months.

Producing oil with minimal land disturbance

Bitumen is very viscous — it doesn’t flow like conventional crude oil — and therefore requires special extraction to bring it to a state where it is fluid enough to be moved. Bitumen is refined into gasoline and other hydrocarbon products, just like other oil resources.

ConocoPhillips uses SAGD to extract bitumen.