CALGARY -- Husky Energy Inc. has given the green light to two new heavy oil construction projects in Saskatchewan in the Lloydminister region.

Calgary-based Husky (TSX:HSE) says the two projects will deliver a total of 20,000 barrels per day, with the first oil expected in 2016.

Construction of the Edam East project has already started while work at the Vawn project is set to begin later this year.

Husky Energy says the two projects are part of the company's plan to achieve a target of delivering a total of 55,000 barrels a day by 2016.

Husky is majority-owned by Hong Kong billionaire Li Ka-shing and has a 2014 capital budget of $4.8 billion.