Husky Energy Outlines Five-year Growth Plan to Increase Production and Downstream Capacity

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Husky Energy Incorporated (TSX:HSE) (Calgary, Alberta) announced this week its five-year growth plan, under which the company plans to increase oil and gas production from about 320,000 to 335,000 barrels of oil equivalent per day (boe/d) in 2017 to 390,000 to 400,000 boe/d in 2021. In a press release regarding its plan, Husky said its growth plans will focus on two core businesses: "an integrated Canada-U.S. upstream and downstream corridor and offshore production in the Asia Pacific and Atlantic regions." Industrial Info is tracking $11.55 billion in Husky Energy projects.

Among the upstream Canadian projects Husky mentioned in its recent investor day conference was the planned expansion of the company's Sunrise production field and processing plant, located north of Fort McMurray, Alberta. The project is divided into two phases, each of which will increase the site's total bitumen production capacity by 70,000 barrels per day (BBL/d). Phase 2A is expected to kick off in late 2018 and take about two years to complete. The project will raise the Sunrise site's total capacity to about 140,000 BBL/d of bitumen. Phase 2B is planned to kick off in mid-2019 and is expected to be completed in the summer of 2021. Bantrel Incorporated (Calgary, Alberta) is acting as engineering, procurement and construction (EPC) firm on the project. Each phase has an estimated total investment value (TIV) of $2.5 billion. For more information, see Industrial Info's project reports on Phase 2A and Phase 2B.

In the U.S. downstream sector, the company is performing a $300 million crude oil flexibility project at its refinery in Lima, Ohio, that will increase the facility's heavy oil processing capacity to 40,000 BBL/d from the current 10,000 BBL/d. Part of the project entails constructing a 195-ton-per-day sulfur recovery unit with supporting tail gas treater. For more information, see Industrial Info's project report. The crude flexibility project is scheduled to be completed by the end of the 2018 and involves various upgrades to existing units, including the fluid catalytic cracking unit (FCCU) and delayed coker unit.

Some of the company's largest projects are occurring offshore off the coast of Newfoundland and Labrador and in the Asia Pacific region. In Canada, the company is commencing with the White Rose grassroot extension project in the Atlantic Ocean. The $2.35 billion project entails constructing an offshore platform 217 miles from Canada's coast to produce 115 million barrels, with a peak production of production of 37,000 BBL/d. For more information, see Industrial Info's project report.

The company's reach extends beyond North America. In Indonesia, Husky is wrapping up the BD natural gas development in the Madura Strait. The project consists of constructing a $1.8 billion grassroot floating production, storage and offloading (FPSO) platform capable of processing production of 100 million standard cubic feet per day of natural gas and 6,600 BBL/d of condensate. Construction began in late 2014 and is expected to be completed this summer. For more information, see Industrial Info's project report. "First gas sales are expected to begin soon at the BD Gas Project in the Madura Strait, with an expected ramp-up to full sales gas rates during the second half of 2017," said the company in its press release.

Husky said it could fully fund its capital plans with West Texas Intermediate (WTI) crude remaining in the $50 range.

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.