Canadian Manufacturing

Husky Energy announces 1,100 layoffs at Sunrise oilsands project

Husky says oil has started flowing from the project in northeastern Alberta, hence the pink slips.



CALGARY—Husky Energy Inc. is laying off 1,100 tradespeople working at its Sunrise oilsands project near Fort McMurray, Alta.

Fort McMurray Today has reported that the workers, employed by contractor Saipem Canada, had expected their jobs to last until summer.

Husky says oil has started flowing from the project in northeastern Alberta, hence the pink slips.

“Saipem’s scope has been wrapped up,” said Husky spokesman Mel Duvall. “As more work is wrapped up, we expect to see further decreases.”

At Sunrise, crude is extracted using steam-assisted gravity drainage, or SAGD, technology.

Steam operations began in December 2014. Total production is expected to ramp up to full capacity of 60,000 barrels per day (30,000 bbls/day net to Husky) around the end of 2016.

The project is part of a 50-50 joint venture with BP.

Crude from Sunrise can be processed at a refinery in Toledo, Ohio, which Husky also jointly owns with BP.

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