Cenovus to raise 2017 spending, resume Christina Lake expansion

Cenovus to raise 2017 spending, resume Christina Lake expansion

The Canadian Press

Published Thursday, Dec. 08, 2016 6:45AM EST

Last updated Thursday, Dec. 08, 2016 8:45AM EST

 

 

Cenovus Energy says it is planning to boost its 2017 capital spending by 24 per cent and resume work on the expansion of its Christina Lake oil sands project in northeast Alberta.

 

The oil producer says it is planning to invest between $1.2-billion and $1.4-billion next year.

About 70 per cent of the company’s 2017 budget will go towards sustaining its oil sands production as well as base production at its other operations.

The other 30 per cent is allotted for growth projects at its existing and emerging oil sands assets, among other things.

The company says it will also increase its total oil production in 2017 by 14 per cent, compared to its forecast average production for 2016.

Cenovus plans to resume work on the Christina Lake expansion, which was paused in late 2014 due to slumping oil prices, in the first half of 2017.

“With the tremendous progress we’ve made over the last two years in reducing operating costs and sustaining capital, we’re confident we can move forward with projects that have strong potential to drive shareholder value,” Brian Ferguson, Cenovus president and CEO, said in a statement.

“As we resume investing in growth projects in the year ahead, Cenovus will continue to focus on maximizing cost efficiencies and maintaining financial resilience while delivering safe and reliable operations.”

 

 

 

About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on December 8, 2016, in economic impact, oil, political. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: