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Researched by Industrial Info Resources (Sugar Land, Texas)--Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta) expects to spend between US$1.2 billion and US$1.7 billion on companywide optimization and growth projects in 2023, as it assumes a stronger role in Canada's oil sands market. But the oil and natural gas developer is facing headwinds in its downstream businesses, which have been stalled by a series of accidents at its U.S. refineries. Industrial Info is tracking more than US$15 billion worth of active projects from Cenovus, nearly US$10 billion of which is in Canada's Oil Sands.
Click on the image at right for a graph detailing active Cenovus projects, by project type.
Cenovus announced in December it would spend between US$600 million and US$700 million in 2023 on its West White Rose offshore drilling project in the Atlantic, offshore Newfoundland and Labrador, which is expected to incur about US$3.2 billion of investment before its first oil is produced in 2026. The project involves the construction of a platform 217 miles offshore in the Jeanne d'Arc Basin (Grand Banks) to produce 52,500 barrels per day (BBL/d), with a daily peak of 80,000 BBL/d by 2029. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more from a detailed project report.
The West White Rose platform will be built on a concrete gravity-based structure (CGS), and it will include drilling facilities, wellheads, a helideck and accommodations for up to 144 persons, among other key features. Earlier in 2022, Cenovus and its partners announced work on West White Rose would restart in 2023, after they reached an agreement to change the overall structure for oil royalties. About 45,000 BBL/d of the eventual daily peak production will be net to Cenovus; the project's overall daily peak previously had been estimated at 72,000 BBL/d. For more information on last year's decision to restart West White Rose, see June 1, 2022, article - Cenovus Revives White Rose Offshore Project as Oil & Gas Demand Skyrockets.
Cenovus also plays a key role in the Madura MAC field development program, offshore Indonesia, which achieved its first gas flows in the fourth quarter of 2022. The MAC Mobile Offshore Production Unit (MOPU), which is expected to produce up to 60 million standard cubic feet per day of natural gas, is one of a series of projects in the Madura fields that are expected to total as much as 250 million standard cubic feet per day of gas and 6,000 barrels per day of associated liquids. The full MAC MOPU is expected to be completed this summer. Subscribers can learn more from a detailed project report.
The MAC and other Madura projects are managed by Husky CNOOC Madura Limited (HCML), a joint venture among Husky Energy (40%), which is owned by Cenovus Energy; China National Offshore Oil Corporation (CNOOC) (Beijing, China) (40%); and SMS Development (20%), a subsidiary of Samudra Energy (Jakarta, Indonesia).
Cenovus also strengthened its hand in Canada's onshore market with last year's full acquisition of the Sunrise oil sands project in northern Alberta, which previously had been held 50:50 by Cenovus and BP plc (NYSE:BP) (London, England). Cenovus has operated the Sunrise project since early 2021, when it acquired Husky. Subscribers can click here for a full list of detailed reports for active projects at Sunrise.
"Looking back on the year [2022], there was a lot of A&D [acquisitions and divestitures] activity that helped us streamline our upstream business," said Alexander Pourbaix, the chief executive officer of Cenovus, in an earnings-related conference call for the company's 2022 fiscal year. "By acquiring the remaining 50% of Sunrise, we now have full control to deploy Cenovus' operating model and take that asset from about 45,000 barrels per day today, back up to its nameplate production of 60,000 barrels per day and beyond."
Despite these advances, Cenovus' market performance is being weighed down by its U.S. refining business, where its margins have been pummeled by its Superior Refinery in Superior, Wisconsin, which has been offline since 2018 due to an explosion and fire, and its Toledo Refinery in Oregon, Ohio, which is undergoing repairs after a fire in September that killed two employees. Subscribers to Industrial Info's GMI Petroleum Refining Plant Database can read detailed profiles of the Superior and Toledo facilities.
Cenovus completed its purchase of BP's 50% interest in the Toledo Refinery in February, bringing its ownership to 100%. For more information, see August 9, 2022, article - Cenovus to Buy Remaining 50% of Ohio Refinery from BP; and March 17, 2023, article - Cenovus Ramps Up Ohio Refinery Restart.
Cenovus also is preparing for a 40,000-BBL/d fluid catalytic cracker unit (FCCU) upgrade at its refinery in Lima, Ohio, which, as a whole, can process up to 160,000 BBL/d. The company also is considering a proposed upgrade to Lima's diesel hydrotreater, which can process up to 30,000 BBL/d of heavy naphtha. Subscribers can read detailed reports on the FCCU and diesel hydrotreater upgrades.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from Cenovus.
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) platform 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).
Click on the image at right for a graph detailing active Cenovus projects, by project type.Cenovus announced in December it would spend between US$600 million and US$700 million in 2023 on its West White Rose offshore drilling project in the Atlantic, offshore Newfoundland and Labrador, which is expected to incur about US$3.2 billion of investment before its first oil is produced in 2026. The project involves the construction of a platform 217 miles offshore in the Jeanne d'Arc Basin (Grand Banks) to produce 52,500 barrels per day (BBL/d), with a daily peak of 80,000 BBL/d by 2029. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more from a detailed project report.
The West White Rose platform will be built on a concrete gravity-based structure (CGS), and it will include drilling facilities, wellheads, a helideck and accommodations for up to 144 persons, among other key features. Earlier in 2022, Cenovus and its partners announced work on West White Rose would restart in 2023, after they reached an agreement to change the overall structure for oil royalties. About 45,000 BBL/d of the eventual daily peak production will be net to Cenovus; the project's overall daily peak previously had been estimated at 72,000 BBL/d. For more information on last year's decision to restart West White Rose, see June 1, 2022, article - Cenovus Revives White Rose Offshore Project as Oil & Gas Demand Skyrockets.
Cenovus also plays a key role in the Madura MAC field development program, offshore Indonesia, which achieved its first gas flows in the fourth quarter of 2022. The MAC Mobile Offshore Production Unit (MOPU), which is expected to produce up to 60 million standard cubic feet per day of natural gas, is one of a series of projects in the Madura fields that are expected to total as much as 250 million standard cubic feet per day of gas and 6,000 barrels per day of associated liquids. The full MAC MOPU is expected to be completed this summer. Subscribers can learn more from a detailed project report.
The MAC and other Madura projects are managed by Husky CNOOC Madura Limited (HCML), a joint venture among Husky Energy (40%), which is owned by Cenovus Energy; China National Offshore Oil Corporation (CNOOC) (Beijing, China) (40%); and SMS Development (20%), a subsidiary of Samudra Energy (Jakarta, Indonesia).
Cenovus also strengthened its hand in Canada's onshore market with last year's full acquisition of the Sunrise oil sands project in northern Alberta, which previously had been held 50:50 by Cenovus and BP plc (NYSE:BP) (London, England). Cenovus has operated the Sunrise project since early 2021, when it acquired Husky. Subscribers can click here for a full list of detailed reports for active projects at Sunrise.
"Looking back on the year [2022], there was a lot of A&D [acquisitions and divestitures] activity that helped us streamline our upstream business," said Alexander Pourbaix, the chief executive officer of Cenovus, in an earnings-related conference call for the company's 2022 fiscal year. "By acquiring the remaining 50% of Sunrise, we now have full control to deploy Cenovus' operating model and take that asset from about 45,000 barrels per day today, back up to its nameplate production of 60,000 barrels per day and beyond."
Despite these advances, Cenovus' market performance is being weighed down by its U.S. refining business, where its margins have been pummeled by its Superior Refinery in Superior, Wisconsin, which has been offline since 2018 due to an explosion and fire, and its Toledo Refinery in Oregon, Ohio, which is undergoing repairs after a fire in September that killed two employees. Subscribers to Industrial Info's GMI Petroleum Refining Plant Database can read detailed profiles of the Superior and Toledo facilities.
Cenovus completed its purchase of BP's 50% interest in the Toledo Refinery in February, bringing its ownership to 100%. For more information, see August 9, 2022, article - Cenovus to Buy Remaining 50% of Ohio Refinery from BP; and March 17, 2023, article - Cenovus Ramps Up Ohio Refinery Restart.
Cenovus also is preparing for a 40,000-BBL/d fluid catalytic cracker unit (FCCU) upgrade at its refinery in Lima, Ohio, which, as a whole, can process up to 160,000 BBL/d. The company also is considering a proposed upgrade to Lima's diesel hydrotreater, which can process up to 30,000 BBL/d of heavy naphtha. Subscribers can read detailed reports on the FCCU and diesel hydrotreater upgrades.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from Cenovus.
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) platform 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).
