The province has approved MEG Energy’s Surmont project.
The oilsands firm filed their application for the project in mid-2012.
Minister of Energy, Sonya Savage announced on Sept. 10 saying the economic viability has been clearly demonstrated.
The project, which will use steam-assisted gravity drainage (SAGD), is expected to produce around 120,000 barrels of bitumen per day.
Vice President of Corporate Communications for MEG Energy, Tara McCool said though they’re pleased, their focus remains the same.
“Although it’s an important project for us, we don’t have immediate plans to sanction the development of the Surmont project. Our current focus is on maximizing value out of Christina Lake.”
According to MEG’s website, the leases are for around 80 square kilometres and will also feature cogeneration, well pads, water treatment and other related facilities.
The project will be located about 80 kilometres south of Fort McMurray, not far from Janvier.