Canadian Mining Journal


OIL SANDS: Hangingstone SAGD project begins production

ALBERTA – The Hangingstone steam assisted gravity drainage (SAGD) oil sands expansion project has begun production 50 km south of Fort McMurray. Peak production of 20,000 bbl/d of bitumen is expected in 2018.

The central processing facility for the Hangingstone expansion project. (Credit: Japan Petroleum Exploration Co.)

The project is a joint venture 75% owned and operated by Japan Canada Oil Sands (JACOS). The other 25% is owned by Nexen Energy, a subsidiary of CNOOC.

The Hangingstone project consists of steam generating equipment, well pad facilities, 32 horizontal well pairs, water treatment and bitumen flowlines. Production from the Hangingstone demonstration project ceased in May 2017, and has not restarted.

More information about the Hangingstone project can be found at the website of JACOS’s parent company, Japan Petroleum Exploration Co. at