Canadian Natural’s Leading Thermal In Situ Oil Sands Operations: Strategic Assets and Innovative Recovery Techniques

Canadian Natural Resources Limited (CNRL) holds a significant portfolio of thermal in situ oil sands assets in Canada, strategically located in the Athabasca and Cold Lake deposits. These assets are rich in bitumen, which, due to its high viscosity, requires thermal recovery methods when it is too deep to be mined economically. With only a small percentage of Canada’s oil sands accessible via mining, the majority, including CNRL’s reserves, necessitate in situ recovery techniques such as Cyclic Steam Stimulation (CSS) and Steam Assisted Gravity Drainage (SAGD).

Cold Lake – Primrose Operations

  • CSS Process: At the Primrose operations, CNRL employs the CSS process to extract bitumen from the Clearwater reservoir. This method involves injecting steam into a well to heat the bitumen, making it flow more easily to the surface. The production here is characterized by peaks and troughs due to the cyclic nature of the process, with newer wells generally producing more.
  • Steam Flooding: After several CSS cycles, the reservoir becomes suitable for steam flooding, a process where low-pressure steam is continuously injected through existing wells to maintain production. This technique is akin to SAGD and is applied to mature wells in the Primrose operations.
  • Solvent-Assisted Pilot: CNRL is piloting a solvent-assisted steam flood in the Primrose area, having initiated solvent injection in 2021. This pilot is expected to continue for two years, aiming to enhance recovery rates and reduce greenhouse gas emissions.

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Athabasca – Kirby and Jackfish Operations

  • SAGD Process: In the Athabasca deposits, particularly at Kirby and Jackfish, CNRL utilizes SAGD technology. This method involves two horizontal wells, where steam is continuously injected through one well to mobilize the bitumen, which is then pumped to the surface through the second well.
  • Kirby Operations:
    • Kirby South: Located 85 km northeast of Lac La Biche, the Kirby South project began steam injection in 2013, targeting the McMurray reservoir. This project marked CNRL’s first venture into the Athabasca Oil Sands, and it uses SAGD technology to produce from long-life, low-decline reservoirs.
  • Kirby North: Reinitiated in 2017, Kirby North reached first oil in Q2 2019, adding significant production capacity to the company’s portfolio.
  • Jackfish Operations: Acquired in 2019, the Jackfish assets added substantial capacity to CNRL’s thermal in situ portfolio. The Jackfish operations include three central processing facilities with a total capacity of 120,000 bbl/d. The company has worked to integrate these assets with the Kirby operations to maximize operational efficiencies and synergies.

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  • Pike Asset Acquisition: In 2022, CNRL further consolidated its thermal oil sands operations by purchasing the remaining 50% of the Pike assets, which are expected to support future pad developments and enhance production from the Jackfish and Kirby assets.

These assets and processes not only demonstrate CNRL’s strategic focus on low-cost, long-life oil sands production but also highlight the company’s commitment to technological innovation and operational efficiency in one of the world’s most challenging oil recovery environments.

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