Page 7 - NorthAmOil Week 33 2022
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NorthAmOil POLICY NorthAmOil
Canadian government, oil sands
producers explore tailings options
US THE Canadian government is exploring options development that will govern how tailings could
for how to deal with tailings ponds in northern be safely drained into the 1,231-km Athabasca
Alberta. And this week, the country’s oil sands River. The regulations could be finalised by
industry outlined proposals to release treated 2025, though Guilbeault said that Ottawa had
water from the tailings ponds into the Athabasca not ruled out the possibility of finding “technical
River. However, Canadian Minister of Environ- solutions” to tailings ponds issues.
ment Steven Guilbeault said this was not the only Data from the Alberta Energy Regulator
option being considered. (AER) show that the total volume of oil sands
Unlike other extractive industries in Canada, tailings has grown from 1.07 trillion cubic
oil sands producers are not allowed to release metres in 2017 to 1.36 trillion cubic metres
treated tailings water. However, the industry in 2020. The Mining Association of Canada
has called for tailings water to be treated and (MAC) estimates that water volumes stored in
released so it can reclaim land affected by oil tailings ponds equal around 2% of the annual
sands operations. flow of the Athabasca River, but has noted that
“The water has to go someplace,” Suncor these volumes would be released over many
Energy’s director of water and closure, Rodney years. However, the plan to release treated tail-
Guest, was quoted by Reuters as saying. “To this ings water has drawn opposition from environ-
date, we have been doing everything but releas- mental groups, which have questioned the safety
ing the water ... while other [water management] of the move and raised concerns over potential
options are in play and we have used many of damage to the river.
them, they cannot replace the need for water Any releases would have to be of drink-
release.” ing-water quality, according to Guilbeault, and
New Canadian federal regulations are under would have to be approved in Ottawa.
PROJECTS & COMPANIES
Santos sanctions Pikka project in Alaska
ALASKA AUSTRALIA’S Santos announced this week that Alaska was thus timely.
it had taken a final investment decision (FID) “The project will add further diversification
on Phase 1 of the Pikka oil project on Alaska’s to our portfolio and reduces geographic concen-
North Slope. The company has pegged total cap- tration risk,” Gallagher added.
ital expenditure on the project at $2.6bn, with Santos has also talked up Pikka’s alignment
Santos’ share accounting for $1.3bn as a 51% with its long-term energy transition goals. It
shareholder in Pikka. The remaining stake in the has entered into memoranda of understand-
project is held by Spain’s Repsol. ing (MoUs) with Alaska native corporations to
The Pikka unit is estimated to contain 768mn deliver carbon offset projects, including a Strate-
barrels of recoverable oil. The first phase of Pikka gic Alliance with ASRC Energy Services. It also
is anticipated to produce 80,000 barrels per day said Pikka would be a net-zero emissions project
(bpd) of oil on a gross basis, with first oil antici- on a Scope 1 and 2 basis by 2040, and that Phase 1
pated in 2026. The project will be connected to would be one of the lowest-cost and lowest una-
existing infrastructure, including the Kuparuk bated emissions-intensity new oil projects in the
transportation pipeline and the Trans-Alaska region.
Pipeline System (TAPS). Santos’ announcement was welcomed by
“With approximately 90% of project spend Alaska’s state government. Alaskan Governor
within North America minimising supply chain Mike Dunleavy said the Pikka project would
risk and civils work already completed, the continue “the renaissance on Alaska’s North
project is well positioned for execution,” stated Slope”. And Alaskan Department of Revenue
Santos’ managing director and CEO, Kevin Commissioner Lucinda Mahoney said the FID
Gallagher. showed that a new project in the state could
Additionally, Gallagher noted that geopol- move forward with community support, in full
itics meant that consumers of oil were seeking compliance with environmental standard and
to diversify their supply sources away from with an “internationally competitive low emis-
Russia, and that development of a project in sions profile”.
Week 33 18•August•2022 www. NEWSBASE .com P7