BP has begun operations from its Sunrise Phase 1 oil sands project in Canada.
The oil major said production is expected in the first quarter of next year.
Sunrise is being operated by Husky Energy in a joint venture with BP.
Earlier this week, Wood Group PSN was awarded a five year contract from BP worth an estimated $750million.
Lamar Mckay, chief executive, BP Upstream said: “Sunrise first steam is a landmark for us in 2014, our sixth major project start-up this year, our very first in-situ oil sands operations and a long-life asset which should give us steady production for decades.
“SAGD (Steam Assisted Gravity Drainage) at Sunrise adds to our expertise in unconventional hydrocarbons including tight oil and gas, leveraging our technology lead in seismic interpretation and our management of giant reservoirs.”
The site in Alberta involves three phases of development growing production capacity to 200,000 barrels per day (bpd).
BP said the field is expected to be in production for more than 50 years.
The first phase is designed for 60,000 bpd (gross) bitumen capacity in two processing plants, expected to be reached over the next 18-24 months.
The second plant of this first phase is due to start up around the middle of 2015.
A second 70,000 bpd phase is in design stage, while the third phase is in early appraisal.
In the 2007 agreement with Husky Energy, the two companies created an integrated North American oil sands business consisting of two joint ventures, Sunrise Oil Sands (operated by Husky) and Toldeo Refinery, Ohio, (operated by BP).
BP announced this week it would be making job cuts as it looks to make savings.
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