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Imperial continues
to pursue production
growth at Kearl.

Imperial outlines output growth plans

CANADA LEADING Canadian producer Imperial Oil at Cold Lake, Corson added.
has various oil sands expansion projects on its Grand Rapids will use solvent-assisted,
radar in Alberta that it is planning to develop in steam-assisted gravity drainage (SAGD) tech-
stages, depending on market demand, project nology designed to reduce emissions and water
economics and its ability to reduce greenhouse use by using less steam.
gas (GHG) emissions. Beyond these projects, Imperial also has
“We have a suite of project opportunities plans to develop its Aspen project, which could
across our assets,” Imperial’s CEO, Brad Corson, potentially have nameplate production capacity
said on the company’s earnings call on January of 75,000 bpd. Efforts to grow
31. Efforts to grow production would come on
In the upstream sector, the company is tar- top of what Corson described as a “standout” production would
geting an increase in production from the Kearl year both financially and operationally for Impe-
project, reaching 280,000 barrels per day (bpd) rial in 2022. come on top of
by 2024. Corson said Imperial was continuing “We are closing the books in what was the
to evaluate further opportunities to raise output best year in the company’s history and a stark what Corson
from Kearl even further. contrast to the challenges we faced just two years described as a
Kearl is one of Imperial’s flagship projects and ago at the depths of Covid,” he said.
production averaged 284,000 bpd in the fourth Imperial’s total upstream production in “standout” year
quarter of 2022, compared with 270,000 bpd in Alberta in the fourth quarter of 2022 reached
the same quarter of 2021. 441,000 barrels of oil equivalent per day, mark- both financially
Imperial is also investing in its Cold Lake ing a slight decline from 445,000 boepd in the
operations and is at the early stage of the Lem- same quarter of 2021. and operationally.
ing field redevelopment. Additionally, it has Beyond Kearl, output from the Cold Lake
brought forward the start-up of the first phase and Syncrude operations averaged 141,000 bpd
of its Grand Rapids project by a year, according and 87,000 bpd in the last quarter of 2022. This
to Corson. was compared with 142,000 bpd and 79,000 bpd
Phase 1 of Grand Rapids, which has a respectively in the same quarter of 2021.
nameplate capacity of 15,000 bpd, is targeted The average operating cost of Imperial’s
for start-up in late 2023, while the Leming upstream assets in the fourth quarter of 2022
project will likely follow suit a year later, was CAD35.47 ($26.63) per boe, compared with
adding capacity of around 8,000-9,000 bpd CAD31.56 ($23.67) per boe a year prior.™

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