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Released December 09, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta) announced this week it plans to invest between $1.2 billion and $1.4 billion in capital projects in 2017, a 24% increase from the current year. About 70% will go toward sustaining the company's oil sands production and the base production at its other operations. Industrial Info is tracking $5.73 billion in active projects involving Cenovus.
The 70% to be invested in oil sands and related production includes Cenovus's Christina Lake oil sands project near Fort McMurray, Alberta, for which the company plans to resume construction of the $800 million Phase G expansion. The 40,000-barrel-per-day (BBL/d) addition to the bitumen-processing plant and steam-assisted gravity drainage (SAGD) gathering field is expected to increase the facility's production capacity to 218,800 BBL/d. For more information, see Industrial Info's project report.
Cenovus deferred work on Phase G in late 2014, due to declining oil prices, but since has reworked the construction plan and rebid contracts to reduce costs, according to a company press release. The expansion is 20% complete and is expected to see its first oil in the second half of 2019.
Cenovus also is preparing an $800 million Phase H expansion at Christina Lake, which would involve a 50,000-BBL/d addition to the plant and SAGD field, brining production capacity to 288,800 BBL/d. For more information, see Industrial Info's project report.
Industrial Info also is tracking $46 million in planned, major maintenance turnarounds at Christina Lake through 2018.
The company also plans to spend capital to progress engineering work on the $1 billion Narrows Lake SAGD Bitumen Production Plant in Fort McMurray, which had been deferred. The first of a three-phase project involves drilling multiple horizontal wells and constructing a 45,000-BBL/d bitumen processing facility, utilizing a solvent-aided-process for bitumen extraction. Cenovus expects to provide an update on its plans for Narrows Lake in the middle of 2017. For more information, see Industrial Info's project report.
Industrial Info also is tracking the proposed Phase II and III expansions at the Pelican Lake SAGD Bitumen Production Plant in Wabasca, Alberta. As designed, each phase would add 60,000 BBL/d for a total capacity of 180,000 BBL/d. For more details, including estimated investment values and contractor contact information, see Industrial Info's project reports for Phase II and Phase III.
The company's total oil production is expected to increase 14% in 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," said Brian Ferguson, the president and chief executive officer of Cenovus, in a press statement.
The remaining 30% of Cenovus' 2017 capital budget is largely set aside for growth projects at its existing and emerging oil sands assets, as well as at its tight oil assets in southern Alberta. In addition to Cenovus' many projects in Alberta, Industrial Info is tracking $14 million in 2017 upgrades at the Weyburn Oil Field in Saskatchewan. The company plans to re-work the wells and upgrade supporting infrastructure to maintain production levels at the 25,000-BBL/d field. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The 70% to be invested in oil sands and related production includes Cenovus's Christina Lake oil sands project near Fort McMurray, Alberta, for which the company plans to resume construction of the $800 million Phase G expansion. The 40,000-barrel-per-day (BBL/d) addition to the bitumen-processing plant and steam-assisted gravity drainage (SAGD) gathering field is expected to increase the facility's production capacity to 218,800 BBL/d. For more information, see Industrial Info's project report.
Cenovus deferred work on Phase G in late 2014, due to declining oil prices, but since has reworked the construction plan and rebid contracts to reduce costs, according to a company press release. The expansion is 20% complete and is expected to see its first oil in the second half of 2019.
Cenovus also is preparing an $800 million Phase H expansion at Christina Lake, which would involve a 50,000-BBL/d addition to the plant and SAGD field, brining production capacity to 288,800 BBL/d. For more information, see Industrial Info's project report.
Industrial Info also is tracking $46 million in planned, major maintenance turnarounds at Christina Lake through 2018.
The company also plans to spend capital to progress engineering work on the $1 billion Narrows Lake SAGD Bitumen Production Plant in Fort McMurray, which had been deferred. The first of a three-phase project involves drilling multiple horizontal wells and constructing a 45,000-BBL/d bitumen processing facility, utilizing a solvent-aided-process for bitumen extraction. Cenovus expects to provide an update on its plans for Narrows Lake in the middle of 2017. For more information, see Industrial Info's project report.
Industrial Info also is tracking the proposed Phase II and III expansions at the Pelican Lake SAGD Bitumen Production Plant in Wabasca, Alberta. As designed, each phase would add 60,000 BBL/d for a total capacity of 180,000 BBL/d. For more details, including estimated investment values and contractor contact information, see Industrial Info's project reports for Phase II and Phase III.
The company's total oil production is expected to increase 14% in 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," said Brian Ferguson, the president and chief executive officer of Cenovus, in a press statement.
The remaining 30% of Cenovus' 2017 capital budget is largely set aside for growth projects at its existing and emerging oil sands assets, as well as at its tight oil assets in southern Alberta. In addition to Cenovus' many projects in Alberta, Industrial Info is tracking $14 million in 2017 upgrades at the Weyburn Oil Field in Saskatchewan. The company plans to re-work the wells and upgrade supporting infrastructure to maintain production levels at the 25,000-BBL/d field. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
