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Researched by Industrial Info Resources (Sugar Land, Texas)--Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta) said Tuesday it plans to invest between C$4 billion (US$2.9 billion) and C$4.5 billion (US$3.3 billion) in 2023, a 21% increase over this year's budget.
The 2023 plan includes about C$2.8 billion (US$2 billion) of sustaining capital and a range of C$1.2 billion (US$880 million) to C$1.7 billion (US$1.2 billion) for optimization and growth.
The growth and optimization funding will include construction of the offshore West White Rose project in Atlantic Canada, continued optimization of the company's oil sands assets and "opportunities in the downstream business to improve reliability and increase margin capture," Cenovus said in a press release.
Industrial Info is tracking 85 projects from Cenovus, worth US$16 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production and Refining project databases can click here for a list of detailed project reports.
Cenovus said it plans to invest C$2.2 billion (US$1.6 billion) to C$2.4 billion (US$1.8 billion) of capital in its oil sands assets, an increase of about C$650 million (US$477 million) compared with 2022, largely related to brownfield optimization and growth opportunities that will increase production at Foster Creek, Sunrise and Christina Lake over the next several years. Oil sands production guidance for 2023 is 582,000 barrels per day (BBL/d) to 642,000 BBL/d.
North of La Corey, Alberta, Cenovus has been performing permitting for its Foster Creek Phase H Bitumen Production Field and Processing Plant Addition. The project will expand field bitumen-production facilities and includes construction of a 30,000-BBL/d train "H" bitumen processing plant, bringing total site production capacity to 230,000 BBL/d, utilizing steam-assisted gravity drainage (SAGD) technology to produce bitumen from oil sands. Construction is planned to kick off in the first quarter of 2023, with completion in the first quarter of the following year. Subscribers can click here for the project report.
The company also plans to invest between C$350 million (US$257 million) and C$450 million (US$330 million) in its conventional production assets.
Total offshore production is expected to be in the range of 65,000 barrels of oil equivalent (BOE/d) to 78,000 BOE/d in 2023, according to the company. Capital spending of between C$600 million (US$430 million) and C$700 million (US$513 million) mainly will be targeted toward the construction of the West White Rose project in the Atlantic, with first oil expected in 2026. The project involves the construction of a platform 217 miles offshore in the Jeanne d'Arc Basin (Grand Banks) in the Atlantic Ocean, to produce 52,500 BBL/d with a daily peak of 75,000 BBL/d. Subscribers can click here to learn more about the project.
In the company's Downstream segment, refining throughput is expected to be between 610,000 BBL/d and 660,000 BBL/d, including 100,000 BBL/d to 110,000 BBL/d in Canada and 510,000 BBL/d to 550,000 BBL/d in the U.S.
Crude oil throughput will increase 28% from 2022 with the restart of Cenovus' Superior Refinery in Wisconsin and the expected additional 50% ownership interest in the Toledo Refinery in Ohio, the company said.
The ramp-up of the Superior Refinery remains on track through the first quarter of 2023. The refinery, which was shut down following a fire and explosion in 2018, has undergone extensive repairs and upgrades. The upgrades will bring the refinery's capacity to 49,000 BBL/d, according to Cenovus. Subscribers can click here for the project report. For related information, see November 7, 2022, article - Restart of Cenovus' Wisconsin Refinery on Track.
The 160,000-BBL/d Toledo Refinery in Ohio remains offline after a fire struck the facility on September 20, causing two fatalities. Cenovus announced in August it had reached an agreement with BP plc (NYSE:BP) (London, England) to acquire the remaining stake in the Toledo Refinery for US$300 million, as Cenovus seeks to boost its downstream operations in the U.S. Cenovus already owns 50% of the refinery.
Capital investment in the downstream business is projected to be between C$800 million (US$586 million) to C$900 million (US$660 million). In part, the investment reflects the restart of the Superior and Toledo refineries in early 2023, the company said, as well as safety and reliability initiatives in Canada.
Subscribers can click here for projects referenced in this article and click here for related 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 more than 200,000 current and future projects worth $17.8 Trillion (USD).
The 2023 plan includes about C$2.8 billion (US$2 billion) of sustaining capital and a range of C$1.2 billion (US$880 million) to C$1.7 billion (US$1.2 billion) for optimization and growth.
The growth and optimization funding will include construction of the offshore West White Rose project in Atlantic Canada, continued optimization of the company's oil sands assets and "opportunities in the downstream business to improve reliability and increase margin capture," Cenovus said in a press release.
Industrial Info is tracking 85 projects from Cenovus, worth US$16 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production and Refining project databases can click here for a list of detailed project reports.
Cenovus said it plans to invest C$2.2 billion (US$1.6 billion) to C$2.4 billion (US$1.8 billion) of capital in its oil sands assets, an increase of about C$650 million (US$477 million) compared with 2022, largely related to brownfield optimization and growth opportunities that will increase production at Foster Creek, Sunrise and Christina Lake over the next several years. Oil sands production guidance for 2023 is 582,000 barrels per day (BBL/d) to 642,000 BBL/d.
North of La Corey, Alberta, Cenovus has been performing permitting for its Foster Creek Phase H Bitumen Production Field and Processing Plant Addition. The project will expand field bitumen-production facilities and includes construction of a 30,000-BBL/d train "H" bitumen processing plant, bringing total site production capacity to 230,000 BBL/d, utilizing steam-assisted gravity drainage (SAGD) technology to produce bitumen from oil sands. Construction is planned to kick off in the first quarter of 2023, with completion in the first quarter of the following year. Subscribers can click here for the project report.
The company also plans to invest between C$350 million (US$257 million) and C$450 million (US$330 million) in its conventional production assets.
Total offshore production is expected to be in the range of 65,000 barrels of oil equivalent (BOE/d) to 78,000 BOE/d in 2023, according to the company. Capital spending of between C$600 million (US$430 million) and C$700 million (US$513 million) mainly will be targeted toward the construction of the West White Rose project in the Atlantic, with first oil expected in 2026. The project involves the construction of a platform 217 miles offshore in the Jeanne d'Arc Basin (Grand Banks) in the Atlantic Ocean, to produce 52,500 BBL/d with a daily peak of 75,000 BBL/d. Subscribers can click here to learn more about the project.
In the company's Downstream segment, refining throughput is expected to be between 610,000 BBL/d and 660,000 BBL/d, including 100,000 BBL/d to 110,000 BBL/d in Canada and 510,000 BBL/d to 550,000 BBL/d in the U.S.
Crude oil throughput will increase 28% from 2022 with the restart of Cenovus' Superior Refinery in Wisconsin and the expected additional 50% ownership interest in the Toledo Refinery in Ohio, the company said.
The ramp-up of the Superior Refinery remains on track through the first quarter of 2023. The refinery, which was shut down following a fire and explosion in 2018, has undergone extensive repairs and upgrades. The upgrades will bring the refinery's capacity to 49,000 BBL/d, according to Cenovus. Subscribers can click here for the project report. For related information, see November 7, 2022, article - Restart of Cenovus' Wisconsin Refinery on Track.
The 160,000-BBL/d Toledo Refinery in Ohio remains offline after a fire struck the facility on September 20, causing two fatalities. Cenovus announced in August it had reached an agreement with BP plc (NYSE:BP) (London, England) to acquire the remaining stake in the Toledo Refinery for US$300 million, as Cenovus seeks to boost its downstream operations in the U.S. Cenovus already owns 50% of the refinery.
Capital investment in the downstream business is projected to be between C$800 million (US$586 million) to C$900 million (US$660 million). In part, the investment reflects the restart of the Superior and Toledo refineries in early 2023, the company said, as well as safety and reliability initiatives in Canada.
Subscribers can click here for projects referenced in this article and click here for related 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 more than 200,000 current and future projects worth $17.8 Trillion (USD).
