Expected to produce first oil early in the second quarter, the Edam East development is the first of three new thermal projects planned to commence production this year.

The other two of the three projects include 10,000 bbls/day Vawn development and the 4,500 bbls/day Edam West project in the third quarter of 2016.

Husky Energy CEO Asim Ghosh said: "Edam East is the latest in our growing suite of heavy oil thermal projects, which are leading our transition into a low sustaining capital business.

"With fast build times and quick ramp ups, these projects typically surpass their nameplate capacity in their early years and the operating costs are amongst the lowest to be found anywhere in the industry."

The firm expects the addition of Edam East, Vawn and Edam West to add about 24,500 barrels of new production by the end of this year.

In November 2015, Husky announced its plan to proceed with the further development of its Rush Lake heavy oil thermal project in Saskatchewan, Canada.

The new 10,000 barrels per day (bbls/day) heavy oil thermal project, Rush Lake 2, is planned to commence production in late 2018.