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Released June 01, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta) is the latest exploration & production company to respond to the rapid rise in demand for fossil fuels by reviving a stalled production project. Cenovus announced this week it will return to developing its West White Rose oil project, an expansion of Canada's White Rose oilfield that was put on hold amid the COVID-19 pandemic. Industrial Info is tracking about $13 billion worth of Cenovus projects worldwide, more than 90% of which is located in North America.
Click on the image at right for a graph detailing Cenovus' active global projects, by project type.
Cenovus' existing offshore operations delivered 76,000 of the company's more than 125,000 barrels of oil equivalent per day (BOE/d) in the first quarter of 2022. Executives say Cenovus is benefiting from strong gas demand in China, where it continues to seek opportunities with its partners to bolster gas sales, to help offset some of its forecasted reduction in contracted natural gas.
The White Rose project offshore Newfoundland and Labrador, which Cenovus co-owns with Suncor Energy Incorporated (NYSE:SU), would include a concrete, gravity-based structure with topsides, drilling facilities, wellheads and support services, including accommodations for up to 144 employees. Product is to be transported via subsea flowlines to Cenovus' SeaRose FPSO facility for processing, storage and offloading. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read more in a detailed project report on the White Rose project, and a detailed plant profile on the SeaRose FPSO.
First oil from the White Rose platform is anticipated in the first half of 2026, with peak production anticipated to reach about 80,000 barrels per day (BBL/d) by year-end 2029, of which 45,000 BBL/d will be net to Cenovus, according to a company press release.
Cenovus agreed to decrease its working interest in the White Rose field and satellite extensions, while Suncor agreed to take a larger stake, according to the press release. Cenovus has reduced its stake in the original field to 60% from 72.5%, and to 56.375% from 68.875% in the satellite extensions. Nalcor Energy (St. John's, Newfoundland and Labrador) has a 5% working interest in the satellite fields.
In an earnings-related conference call at the end of April, Alex Pourbaix, the chief executive officer of Cenovus, said the company and its partners expected to make a decision on the West White Rose project in the coming weeks. "We have taken the time over the past 16 months to substantially de-risk this project," Pourbaix said. "West White Rose is right now around 65% complete."
Prior to the COVID-19 pandemic, the West White Rose project was being developed by Husky Energy Incorporated, which has since been acquired by Cenovus in an all-stock transaction.
"One of the things we did post the acquisition of Husky is, we did a comb through of all the assets to look at assets that were on strategy, versus assets that are not on strategy or non-core," said Jonathan McKenzie, the chief operating officer of Cenovus, in the conference call. "We're getting close to the very end of that program. I think we still need to close on the retail assets."
One of the Husky facilities now managed by Cenovus is the massive Sunrise project in northeastern Alberta, which it co-owns 50:50 with BP plc (NYSE:BP) (London, England). Cenovus is evaluating a series of proposed expansions to the Sunrise East and Sunrise South production fields and processing plants. Subscribers can click here for a full list of detailed reports on proposed projects at Sunrise.
"Production at Sunrise in the [first] quarter was 24,000 barrels per day net to Cenovus," Pourbaix said. "Since the quarter has ended, production has reached over 25,000 barrels per day as we see additional benefits from our operating strategy rollout. The facility has a nameplate capacity of 30,000 barrels a day net to Cenovus, and we are confident we can achieve this level of production over time."
Cenovus also expects to finish its estimated $750 million rebuild and upgrade of its refinery in Superior, Wisconsin, by the end of the year. Cenovus is rebuilding a 38,000-BBL/d crude and vacuum unit and an 11,000-BBL/d fluid catalytic cracking unit (FCCU) at the refinery, formerly owned by Husky, to increase its capacity to 43,000 BBL/d. Work began in April 2019, but COVID-19 and other market factors have pushed the project's completion out by years. Subscribers can learn more from Industrial Info's project report.
The Superior Refinery is a key part of Enbridge Incorporated's (NYSE:ENB) (Calgary, Alberta) 8,600-mile Mainline pipeline network, which Enbridge says has the capacity to transport 2.85 million BBL/d of light and heavy crude oil from Edmonton, Alberta, to the U.S. Midwest and Ontario.
"We remain on schedule to restart [the Superior Refinery] by the end of the year," Pourbaix said. "And we very much look forward to that day. With a nameplate capacity of 49,000 barrels per day, Superior will be an important addition to our heavy oil value chain, as the first stop on the Enbridge Mainline."
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Click on the image at right for a graph detailing Cenovus' active global projects, by project type.Cenovus' existing offshore operations delivered 76,000 of the company's more than 125,000 barrels of oil equivalent per day (BOE/d) in the first quarter of 2022. Executives say Cenovus is benefiting from strong gas demand in China, where it continues to seek opportunities with its partners to bolster gas sales, to help offset some of its forecasted reduction in contracted natural gas.
The White Rose project offshore Newfoundland and Labrador, which Cenovus co-owns with Suncor Energy Incorporated (NYSE:SU), would include a concrete, gravity-based structure with topsides, drilling facilities, wellheads and support services, including accommodations for up to 144 employees. Product is to be transported via subsea flowlines to Cenovus' SeaRose FPSO facility for processing, storage and offloading. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read more in a detailed project report on the White Rose project, and a detailed plant profile on the SeaRose FPSO.
First oil from the White Rose platform is anticipated in the first half of 2026, with peak production anticipated to reach about 80,000 barrels per day (BBL/d) by year-end 2029, of which 45,000 BBL/d will be net to Cenovus, according to a company press release.
Cenovus agreed to decrease its working interest in the White Rose field and satellite extensions, while Suncor agreed to take a larger stake, according to the press release. Cenovus has reduced its stake in the original field to 60% from 72.5%, and to 56.375% from 68.875% in the satellite extensions. Nalcor Energy (St. John's, Newfoundland and Labrador) has a 5% working interest in the satellite fields.
In an earnings-related conference call at the end of April, Alex Pourbaix, the chief executive officer of Cenovus, said the company and its partners expected to make a decision on the West White Rose project in the coming weeks. "We have taken the time over the past 16 months to substantially de-risk this project," Pourbaix said. "West White Rose is right now around 65% complete."
Prior to the COVID-19 pandemic, the West White Rose project was being developed by Husky Energy Incorporated, which has since been acquired by Cenovus in an all-stock transaction.
"One of the things we did post the acquisition of Husky is, we did a comb through of all the assets to look at assets that were on strategy, versus assets that are not on strategy or non-core," said Jonathan McKenzie, the chief operating officer of Cenovus, in the conference call. "We're getting close to the very end of that program. I think we still need to close on the retail assets."
One of the Husky facilities now managed by Cenovus is the massive Sunrise project in northeastern Alberta, which it co-owns 50:50 with BP plc (NYSE:BP) (London, England). Cenovus is evaluating a series of proposed expansions to the Sunrise East and Sunrise South production fields and processing plants. Subscribers can click here for a full list of detailed reports on proposed projects at Sunrise.
"Production at Sunrise in the [first] quarter was 24,000 barrels per day net to Cenovus," Pourbaix said. "Since the quarter has ended, production has reached over 25,000 barrels per day as we see additional benefits from our operating strategy rollout. The facility has a nameplate capacity of 30,000 barrels a day net to Cenovus, and we are confident we can achieve this level of production over time."
Cenovus also expects to finish its estimated $750 million rebuild and upgrade of its refinery in Superior, Wisconsin, by the end of the year. Cenovus is rebuilding a 38,000-BBL/d crude and vacuum unit and an 11,000-BBL/d fluid catalytic cracking unit (FCCU) at the refinery, formerly owned by Husky, to increase its capacity to 43,000 BBL/d. Work began in April 2019, but COVID-19 and other market factors have pushed the project's completion out by years. Subscribers can learn more from Industrial Info's project report.
The Superior Refinery is a key part of Enbridge Incorporated's (NYSE:ENB) (Calgary, Alberta) 8,600-mile Mainline pipeline network, which Enbridge says has the capacity to transport 2.85 million BBL/d of light and heavy crude oil from Edmonton, Alberta, to the U.S. Midwest and Ontario.
"We remain on schedule to restart [the Superior Refinery] by the end of the year," Pourbaix said. "And we very much look forward to that day. With a nameplate capacity of 49,000 barrels per day, Superior will be an important addition to our heavy oil value chain, as the first stop on the Enbridge Mainline."
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
