Cenovus Energy returns to normal operations following precautionary shut down due to wildfire

Cenovus Energy Inc., a Calgary-based oil company, said on Thursday that it has returned to normal operations at its Foster Creek oilsands project in northern Alberta after a forest fire on the Cold Lake Air Weapons Range (CLAWR) led to the precautionary shutdown of the operation on May 23 for 11 full days.

Cenovus said in a press release that it expects second-quarter production to be reduced by approximately 10,500 barrels per day (bbls/d) net due to the shutdown. For the full year, the production impact is estimated to be approximately 2,600 bbls/d net. Cenovus expects full-year production from Foster Creek to remain within its previously announced annual guidance of 62,000 bbls/d to 68,000 bbls/d net.

Essential staff were cleared to return to Foster Creek on June 1 to inspect the site and begin start-up activities. Crews found no damage to the Foster Creek facility and infrastructure, and the restart of operations went smoothly, the company reported.

Cenovus is currently assessing expected costs incurred as a result of the evacuation and the shutdown.

Foster Creek, which is jointly owned with ConocoPhillips, had average production of approximately 67,500 bbls/d net to Cenovus (135,000 bbls/d gross) before the forest fire. “Production has now essentially returned to this range,” the company said.

Related: Alberta applies full fire ban to provincial forests

The Athabasca natural gas operation, which was also shut down due to the forest fire, has returned to normal operations as well. The facility produces about 20 million cubic feet per day of gas, which is used as fuel for Foster Creek. While the forest fire caused minor damage to peripheral equipment at some well sites, the natural gas wells were not affected.

On June 9, Alberta Agriculture and Forestry declared the forest fire on the CLAWR as being held and lifted the precautionary two-hour evacuation notice for Foster Creek.

On May 25, Alberta implemented a full fire ban for all forests in the province. The ban prohibits all open fires, including campfires in campgrounds or backcountry and random camping areas, including charcoal briquettes in the province’s Forest Protection Area, which includes most of the province north and west of Edmonton, Red Deer and Calgary.

Meanwhile on the Cold Lake Weapons Range — that 17,000 hectare fire rages on. #cbc #abfire pic.twitter.com/iN3JtM9Dyz

— Andrea Huncar CBC (@andreahuncar) May 27, 2015