Operations ramping up for oilsands companies after wildfires disrupt production

Two major oilsands operators say business is returning to normal after wildfires forced shutdowns at their northeastern Alberta sites.

Cenovus Energy Inc. said Thursday that it has safely ramped up production at Christina Lake, south of Fort McMurray, Alta.

Late last month, it removed all but essential personnel from the site and shut in about 238,000 barrels per day of production as a wildfire raged to the south.

It said operations resumed on June 3, with volumes increasing to normal levels over the course of a week.

Cenovus has confirmed there was no damage to its infrastructure.

"The company continues to closely monitor the overall wildfire situation in Alberta, with a focus on the safety of its people and assets," it said.

"It appreciates the continued efforts of its teams who are working to keep the company's people and assets safe, and for the provincial emergency management teams and firefighters keeping communities safe."

WATCH | Wildfire threat shutters major oilsands operations: 

Wildfire shuts down 7% of Canadian oil production

11 days ago

Duration 1:58

The Caribou Lake fire in northeastern Alberta has temporarily shut down some oilsands operations. Companies say the fire, which covers roughly 61,500 hectares, has cut seven per cent of Canada’s total oil production at a time when crude oil supplies are already strained.

Meanwhile, MEG Energy Corp. said Wednesday it was bringing its Christina Lake operations back online. All personnel have returned and power has been restored.

The wildfire caused an outage to third-party power line infrastructure connecting the project to Alberta's electricity grid, prompting the company to disconnect from the system.

MEG has begun restarting part of the project that had been down for planned maintenance when the fires broke out.

The power outage delayed startup of the Phase 2B operations, which represent about 70,000 barrels per day of production.

"We are deeply grateful for the unwavering support of Alberta's emergency responders, government agencies, and the electricity provider during this critical time," said CEO Darlene Gates.

"Additionally, I want to extend my heartfelt thanks to our employees and contractors for their exceptional hard work, focus, and steadfast commitment to operating safely."

Wildfires have forced tens of thousands from their homes across the Prairies in recent weeks.

The Alberta government said there are 23 fires burning out of control in the province. The Caribou Lake fire complex burning south of Christina Lake is still considered out of control and covers almost 69,000 hectares.

Wildfires this season have scorched close to 650,0000 hectares.