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Researched by Industrial Info Resources (Sugar Land, Texas)--Canada's Husky Energy Incorporated (TSX:HSE) (Calgary, Alberta) has reduced its planned capital spending budget for the next five years in order to increase cash flow. The company plans to spend an annual average of C$3.15 billion ($2.34 billion) in the 2019-23 period, versus the previously planned average of C$3.5 billion ($2.6 billion) for the 2018-22 period. In a company press release, Husky Chief Executive Officer Rob Peabody said, "Husky's updated five-year plan demonstrates strong capital discipline in the current environment. The plan achieves a significant increase in free cash flow while increasing production by about 100,000 barrels per day through 2023." Industrial Info is tracking more than $15 billion in active Husky Energy projects, including offshore, oil sands and refining projects.
Among Husky's largest and most capital-intensive projects is the West White Rose crude oil platform, offshore Newfoundland and Labrador. Construction on the project began earlier this year, and first oil is expected in mid-2022. The platform is expected to have a peak production of 75,000 barrels per day (BBL/d). All well fluids will be transported by subsea flowlines to the SeaRose floating production, storage and offloading facility. Wood plc (Aberdeen, Scotland) is performing design engineering on the project, which has an estimated total investment value (TIV) of $2.2 billion. For more information, see Industrial Info's project report.
Husky is a major player in the development of Alberta's oil sands. Alberta has imposed production limits on crude oil to help boost prices of oil produced in the province, which suffers from a lack of takeaway capacity. While some oil sands producers have been supportive of the curtailment and its subsequent increased prices, Husky is not one of those companies. In a recent conference call, Peabody urged Alberta's newly elected United Conservative Party to put an end to the curtailment. Peabody said, "Industry is shutting in barrels that would otherwise have been economic. This has provoked job losses and resulted in economic hardship for the service sector, which will ultimately reduce the tax base."
Among the company's planned oil sands projects is the Alberta portion of the Spruce Lake development. The project is divided into East and South developments and will include new production and processing plants with a capacity of 10,000 BBL/d using steam-assisted gravity drainage (SAGD) technology. The projects could kick off later this year, for completion in 2021 and 2022. They have an estimated combined TIV of $800 million. For more information, see Industrial Info's project reports on Spruce Lake East and Spruce Lake South.
Husky also is developing oil sands projects in Saskatchewan. Among the company's projects in the province that are underway is the Phase II expansion of the Rush Lake facility. The project entails constructing a bitumen production field and processing plant with a capacity of 10,000 BBL/d to increase the facility's total capacity to 22,000 BBL/d. Construction began in 2017, and the project is in its final stages. WSP Oil and Gas (Calgary) is providing engineering, procurement and construction (EPC). For more information, see Industrial Info's project report.
Husky also is a player in the refining sector and has active expansion and upgrade projects at refineries in the U.S. and Canada. Husky is in the early planning stage for the expansion of an asphalt refinery in Lloydminster, Alberta. The project would expand the 30,000-BBL/d refinery to 60,000 BBL/d to produce more than 30 types and grades of road asphalt to supply Western Canada, Ontario, Quebec and U.S. markets. The planned $700 million project could kick off in early 2022, taking about a year to complete. For more information, see Industrial Info's project report.
In the U.S., Husky is underway with an upgrade project at its refinery in Superior, Wisconsin. The upgrade includes rebuilding the 38,000-BBL/d crude and vacuum unit by replacing column internals and increasing production capacity to 43,000 BBL/d. The 11,000 fluid catalytic cracker unit also is being rebuilt. The project comes in the wake of an explosion at the refinery in April last year. Jacobs Engineering Group Incorporated (NYSE:JEC) (Dallas, Texas) is EPC contractor. For more information, see Industrial Info's project report and April 27, 2018, article - Explosion Rocks Husky Energy Refinery in Wisconsin.
Husky said it remains on track for 2019 capital spending of C$3.3 billion ($2.45 billion) to C$3.5 billion ($2.6 billion).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.
Among Husky's largest and most capital-intensive projects is the West White Rose crude oil platform, offshore Newfoundland and Labrador. Construction on the project began earlier this year, and first oil is expected in mid-2022. The platform is expected to have a peak production of 75,000 barrels per day (BBL/d). All well fluids will be transported by subsea flowlines to the SeaRose floating production, storage and offloading facility. Wood plc (Aberdeen, Scotland) is performing design engineering on the project, which has an estimated total investment value (TIV) of $2.2 billion. For more information, see Industrial Info's project report.
Husky is a major player in the development of Alberta's oil sands. Alberta has imposed production limits on crude oil to help boost prices of oil produced in the province, which suffers from a lack of takeaway capacity. While some oil sands producers have been supportive of the curtailment and its subsequent increased prices, Husky is not one of those companies. In a recent conference call, Peabody urged Alberta's newly elected United Conservative Party to put an end to the curtailment. Peabody said, "Industry is shutting in barrels that would otherwise have been economic. This has provoked job losses and resulted in economic hardship for the service sector, which will ultimately reduce the tax base."
Among the company's planned oil sands projects is the Alberta portion of the Spruce Lake development. The project is divided into East and South developments and will include new production and processing plants with a capacity of 10,000 BBL/d using steam-assisted gravity drainage (SAGD) technology. The projects could kick off later this year, for completion in 2021 and 2022. They have an estimated combined TIV of $800 million. For more information, see Industrial Info's project reports on Spruce Lake East and Spruce Lake South.
Husky also is developing oil sands projects in Saskatchewan. Among the company's projects in the province that are underway is the Phase II expansion of the Rush Lake facility. The project entails constructing a bitumen production field and processing plant with a capacity of 10,000 BBL/d to increase the facility's total capacity to 22,000 BBL/d. Construction began in 2017, and the project is in its final stages. WSP Oil and Gas (Calgary) is providing engineering, procurement and construction (EPC). For more information, see Industrial Info's project report.
Husky also is a player in the refining sector and has active expansion and upgrade projects at refineries in the U.S. and Canada. Husky is in the early planning stage for the expansion of an asphalt refinery in Lloydminster, Alberta. The project would expand the 30,000-BBL/d refinery to 60,000 BBL/d to produce more than 30 types and grades of road asphalt to supply Western Canada, Ontario, Quebec and U.S. markets. The planned $700 million project could kick off in early 2022, taking about a year to complete. For more information, see Industrial Info's project report.
In the U.S., Husky is underway with an upgrade project at its refinery in Superior, Wisconsin. The upgrade includes rebuilding the 38,000-BBL/d crude and vacuum unit by replacing column internals and increasing production capacity to 43,000 BBL/d. The 11,000 fluid catalytic cracker unit also is being rebuilt. The project comes in the wake of an explosion at the refinery in April last year. Jacobs Engineering Group Incorporated (NYSE:JEC) (Dallas, Texas) is EPC contractor. For more information, see Industrial Info's project report and April 27, 2018, article - Explosion Rocks Husky Energy Refinery in Wisconsin.
Husky said it remains on track for 2019 capital spending of C$3.3 billion ($2.45 billion) to C$3.5 billion ($2.6 billion).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.
