CANADIAN company Husky Energy has started oil production at the Sunrise Energy project in northern Alberta, Canada.

Husky said total production is expected to ramp up to full capacity of 60,000 barrels per day around the end of 2016.

Husky chief executive officer Asim Ghosh said steam operations at the project began in December 2014.

“Sunrise is the latest in a series of resilient, low sustaining capital projects to come online from our diverse portfolio,” he said.

“We are expecting more than 40 years of production from this reservoir with very low ongoing capital costs.”

Husky is the operator of Sunrise, which is located about 60 kilometres northeast of Fort McMurray, Alberta.

The company has a 50 per cent working interest in the steam-assisted gravity drainage project with BP, which operated the jointly-owned BP-Husky Toledo refinery, Husky said.

Husky said bitumen from Sunrise can be processed at the Toledo refinery.