[End of Participation] Canada: Oil Sands Project
JAPEX has decided to end our participation in the project in July 2021 and completed to transfer the share of an operating company in September 2021.
Please note that the information in this page is as of July 2021, when JAPEX had decided to end our participation in the project.
This is a development and production project for oil sands layer at the Hangingstone leases in the Province of Alberta, Canada.
JAPEX has decided to transfer all of its shares of an operating company, Japan Canada Oil Sands Ltd. (JACOS), to HE Acquisition Corporation in July 2021 and completed its transfer in September 2021.
Overview (as of July 2021)
- Production: Bitumen (Around 20,000 barrels per day scale)
- Shipped as diluted bitumen, which is mixed with condensate and diluted to the equivalent of heavy oil to give it fluidity and enable it to be poured into pipelines.
- Mainly sold via pipelines to the Midwest region of the United States
Central Production Facility of Hangingstone Leases
- Name: Hangingstone Leases
- Location: Athabasca region, Canada
- Operator: Japan Canada Oil Sands Ltd. (JACOS)
- Project Company: JACOS (Consolidated subsidiary)
- Invested through Canada Oil Sands Co., Ltd. (CANOS, Investment ratio 93.60%)
- Participating Interest: JACOS (75%/ JAPEX net 70.935%), CNOOC Petroleum North America ULC (25%)
Location of Hangingstone Leases (Athabasca region, Canada)
- December 1978: Established Japan Canada Oil Sands Ltd. (JACOS), a consolidated subsidiary of our company
- June 1999: Started test production of bitumen by the SAGD method in the 3.75 Section Area (DEMO Area) at the Hangingstone leases
- January 2003: Shifted to commercial production of bitumen in DEMO Area
- December 2012: Decided to invest in the development of the area adjacent to DEMO Area (the current area) at the Hangingstone leases
- April 2017: Started steam injection in the current area
- August 2017: Started bitumen production operation in the current area, terminated bitumen production operation in DEMO area / decided to transfer DEMO Area
- June 2018: Shifted to stable production of bitumen (20,000 barrels per day) in the current area
- July 2021: Decided to transfer all of its JACOS shares to HE Acquisition Corporation
- September 2021: Completed to transfer the JACOS share
- Related News
- Disclosure on July 29, 2021: Ending our Promotion of the Oil Sands Project in Canada, the Change in Subsidiary, the Recognition of Extraordinary Losses, and the Voluntary Return of Executive Compensation (168KB)
- Disclosure on June 27, 2018: Transition to 20,000 barrels/d Stable Production Operations at the Hangingstone Oil Sands Project (105KB)
- Disclosure on August 8, 2017: Start of Production Operations in Oil Sands Project at Hangingstone in the Province of Alberta, Canada, and Decision not to Re-start SAGD Operations in the 3.75 Section Area (121KB)
Outline of the SAGD Method
JACOS pioneered the establishment of the Steam-Assisted Gravity Drainage (SAGD) method, a method using steam to extract bitumen (ultra-heavy oil) from the oil sands layer.
The Steam Assisted Gravity Drainage (SAGD) method is a method to extract bitumen from the oil sands layer, using high-temperature, high-pressure steam to heat the oil sands layer and providing liquidity to the bitumen.
In the SAGD method, a pair of horizontal wells are first drilled. Steam is then added to the upper well to heat the oil sands layer, and the bitumen, which flows fluidly through the layer, is collected and produced in the lower well.
Conceptual diagram of SAGD Method