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Released December 15, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Canadian oil sands producer Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta) last week announced its spending plans for 2024, giving a slight bump in the estimated spending from 2023 levels. The company also forecast higher upstream production and downstream throughput in the upcoming year, following the return to service of two U.S. refineries.
Cenovus announced that it intends to invest between C$4.5 billion (US$3.5 billion) and C$5 billion (US$3.7 billion), an increase from the C$4 billion (US$3.0 billion) to C$4.5 billion (US$3.5 billion) of estimated spending in 2023, which itself was an increase of about 21% from the prior year.
This year's budget includes C$1.5 billion (US$1.1 billion) to C$2.0 billion (US$1.5 billion) in spending for optimization and growth capital, with Cenovus' offshore West White Rose project named as a primary recipient of the funds. Construction of the grassroot West White Rose offshore oil platform began in 2018 and is expected to last a few more years. The platform is located in the Atlantic Ocean, about 217 miles from shore in water approximately 120 meters deep. When completed, the facility will produce an estimated 52,500 barrels per day (BBL/d), with a daily peak of 75,000 BBL/d. The platform will have no storage, and all well fluids will be transported to the SeaRose floating production, storage and offloading (FPSO) vessel for processing and offloading. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for more information on the project.
While the West White Rose project won't be producing next year, Cenovus is expecting an increase in production from its onshore assets. Cenovus expects upstream production to be between 770,000 and 810,000 barrels of oil equivalent per day (boe/d), compared with an expected 775,000 to 795,000 boe/d this year. Funding will be allocated to the company's Foster Creek, Christina Lake and Sunrise oil sands facilities in Alberta. Plans for next year include starting work to increase the production capacity of the Foster Creek site by constructing a new 30,000-BBL/d bitumen processing train that will use steam-assisted gravity drainage (SAGD) technology to increase the plant's production capacity to 230,000 BBL/d. The project is expected to be completed in early 2025. Subscribers can click here for more information.
Cenovus also has plans to launch a project to increase production capacity at its Christina Lake facility next year. The project, expected to be completed by the end of 2025, will expand the SAGD gathering field to increase production capacity to 288,800 BBL/d and also includes construction of a new 50,000-BBL/d bitumen-processing plant. Subscribers can click here to learn more about the project.
Unlike the Foster Creek and Christina Lake projects, which are occurring at existing facilities, the company's Sunrise oil sands project is entirely grassroot. The Sunrise field consists of two sections, East and South, with development of both tentatively planned to begin next year. Both the Sunrise East and Sunrise South projects involve the establishment of new bitumen production fields and a 20,000-BBL/d processing plant using SAGD technology. While there has been significant slippage from the original planned start date of the projects, if they kick off next year, the fields and plants could be in operation by the end of 2025. Subscribers can learn more by viewing the project reports on the Sunrise East and Sunrise South projects. After the initial development of the plants and fields, Cenovus already has plans to expand production from both fields in subsequent years.
In Cenovus' downstream segment, crude oil throughput is expected to be between 630,000 and 670,000 BBL/d in 2024, up from 580,000 to 610,000 BBL/d expected this year. The increase in throughput comes thanks to two of the company's U.S. refineries being restarted this year after past accidents. Cenovus acquired full ownership of both refineries after the accidents. The company's Toledo Refinery in Ohio suffered an explosion and fire in 2022 that claimed two lives. It was reopened earlier this year. In 2018, an explosion and series of fires damaged the Superior Refinery in Wisconsin, injuring more than 30 people. Cenovus acquired the refinery when it combined with Husky Energy in early 2021. The plant has restarted operations within the past couple of months. Subscribers to Industrial Info's Refining Plant Database can view the plant profiles of the Toledo and Superior refineries.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Cenovus announced that it intends to invest between C$4.5 billion (US$3.5 billion) and C$5 billion (US$3.7 billion), an increase from the C$4 billion (US$3.0 billion) to C$4.5 billion (US$3.5 billion) of estimated spending in 2023, which itself was an increase of about 21% from the prior year.
This year's budget includes C$1.5 billion (US$1.1 billion) to C$2.0 billion (US$1.5 billion) in spending for optimization and growth capital, with Cenovus' offshore West White Rose project named as a primary recipient of the funds. Construction of the grassroot West White Rose offshore oil platform began in 2018 and is expected to last a few more years. The platform is located in the Atlantic Ocean, about 217 miles from shore in water approximately 120 meters deep. When completed, the facility will produce an estimated 52,500 barrels per day (BBL/d), with a daily peak of 75,000 BBL/d. The platform will have no storage, and all well fluids will be transported to the SeaRose floating production, storage and offloading (FPSO) vessel for processing and offloading. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for more information on the project.
While the West White Rose project won't be producing next year, Cenovus is expecting an increase in production from its onshore assets. Cenovus expects upstream production to be between 770,000 and 810,000 barrels of oil equivalent per day (boe/d), compared with an expected 775,000 to 795,000 boe/d this year. Funding will be allocated to the company's Foster Creek, Christina Lake and Sunrise oil sands facilities in Alberta. Plans for next year include starting work to increase the production capacity of the Foster Creek site by constructing a new 30,000-BBL/d bitumen processing train that will use steam-assisted gravity drainage (SAGD) technology to increase the plant's production capacity to 230,000 BBL/d. The project is expected to be completed in early 2025. Subscribers can click here for more information.
Cenovus also has plans to launch a project to increase production capacity at its Christina Lake facility next year. The project, expected to be completed by the end of 2025, will expand the SAGD gathering field to increase production capacity to 288,800 BBL/d and also includes construction of a new 50,000-BBL/d bitumen-processing plant. Subscribers can click here to learn more about the project.
Unlike the Foster Creek and Christina Lake projects, which are occurring at existing facilities, the company's Sunrise oil sands project is entirely grassroot. The Sunrise field consists of two sections, East and South, with development of both tentatively planned to begin next year. Both the Sunrise East and Sunrise South projects involve the establishment of new bitumen production fields and a 20,000-BBL/d processing plant using SAGD technology. While there has been significant slippage from the original planned start date of the projects, if they kick off next year, the fields and plants could be in operation by the end of 2025. Subscribers can learn more by viewing the project reports on the Sunrise East and Sunrise South projects. After the initial development of the plants and fields, Cenovus already has plans to expand production from both fields in subsequent years.
In Cenovus' downstream segment, crude oil throughput is expected to be between 630,000 and 670,000 BBL/d in 2024, up from 580,000 to 610,000 BBL/d expected this year. The increase in throughput comes thanks to two of the company's U.S. refineries being restarted this year after past accidents. Cenovus acquired full ownership of both refineries after the accidents. The company's Toledo Refinery in Ohio suffered an explosion and fire in 2022 that claimed two lives. It was reopened earlier this year. In 2018, an explosion and series of fires damaged the Superior Refinery in Wisconsin, injuring more than 30 people. Cenovus acquired the refinery when it combined with Husky Energy in early 2021. The plant has restarted operations within the past couple of months. Subscribers to Industrial Info's Refining Plant Database can view the plant profiles of the Toledo and Superior refineries.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
