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Long Lake facility | Source: CNOOC International website

Long Lake is an integrated Steam-Assisted Gravity Drainage (SAGD) oil sands facility located approximately 40 km southeast of Fort McMurray, in the Athabasca oil sands region of Alberta, Canada. The facility extracts bitumen from the McMurray Formation (Wabiskaw-McMurray deposit).

History & Development

The project was initiated in 2001 when Nexen Inc. formed a joint venture with OPTI Canada Inc. to develop the Long Lake lease, combining SAGD bitumen extraction with onsite upgrading using OPTI's proprietary OrCrude™ technology . Regulatory approval was granted in 2003, construction began in 2004, steam injection commenced in 2007, and first production was achieved in 2008 . CNOOC acquired Nexen — and with it full ownership of Long Lake — in February 2013 . Following a fire and explosion in 2016 that severely damaged the adjacent Long Lake Upgrader, the upgrading facility was permanently shut down, and the site has operated as a SAGD-only operation since then.

Technical Description

Long Lake uses horizontal SAGD well pairs drilled more than 200 metres underground to access the oil sands deposit . One well in each pair injects high-pressure steam into the reservoir; the heat melts the bitumen, which flows with condensed water to the lower producer well and is pumped to surface. The facility also includes a cogeneration unit that produces steam for SAGD operations and generates electricity — producing more power than the site consumes, with the surplus sold to the Alberta power grid.

Capacity & Production

Expansion Projects

• Long Lake Southwest (LLSW): FID taken in June 2018, $400 million investment, adding ~26,000 boe/d from three new well pads tied into the existing facility; construction began 2018, first oil achieved ~2020–2021
• Long Lake Northwest (LLNW): Production commenced November 2024; peak production expected at ~8,200 bopd in 2025; 8 SAGD well pairs planned

References

1. CNOOC International. Oil Sands (Accessed Mar 25, 2026)
2. CNOOC International. SAGD at Long Lake (Accessed Mar 25, 2026)
3. Wikipedia. Long Lake (oil sands) (Page version: Oct 25, 2025)
4. Oil Sands Magazine (Jun 21, 2018). Nexen green lights SAGD expansion at Long Lake
5. CNOOC Limited (Nov 6, 2024). Press Release: CNOOC Limited Brings On-stream Long Lake NW Project in Canada