Investors buy into International Petroleum's oil sands plan
International Petroleum Corp. is expanding its facility in Blackrod, Alta., with the goal of producing oil at a new development project by the end of 2026.
The company says the US$850-million project is expected to produce 30,000 barrels of oil daily by 2028. IPC holds a 100 per cent working interest in the project.
“We took a strategic decision at the start of this year to sanction the Greenfield development project, which hasn’t been done in quite some time,” William Lundin, chief operating officer of International Petroleum, told BNN Bloomberg in a television interview on Tuesday.
“This asset has a significant amount of resource at play.”
A greenfield project refers to a development on bare, undeveloped land.
Lundin said the project is particularly exciting given its proximity to a pipeline leading to Edmonton, which can then connect to shipping options through the Trans Mountain pipeline.
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The beleaguered Trans Mountain pipeline has faced several delays, including the possibility of another nine months due to a route change. In a worst-case scenario, the pipeline won’t be finished until the end of 2024.
“It might be a little delayed potentially, as we’re hearing some rumblings about that, but I think we’ll be in good time,” Lundin said. “By the time Blackrod comes on, I’m sure that pipeline will be in service.”
With files from Bloomberg News