Husky Energy Incorporated (TSX:HSE) (Calgary, Alberta) says it has substantially reduced sustaining and maintenance capital requirements, even as the restarted Sunrise Energy Project in the Canadian oil sands continues to ramp up production and progress is seen on other projects. Industrial Info is tracking more than $12 billion in active Husky Energy projects.

Capital expenditures by the Canadian oil and gas producer for the first six months of 2016 were just more than C$1 billion ($760 million), down from more than C$1.5 billion ($1.14 billion) in the same period a year earlier, the company reported Friday. It said the Husky Midstream Limited Partnership reduces infrastructure funding requirements for new thermal oil sands production growth, and "fewer, more material plays" in Western Canada have led to reduced sustaining capital requirements.

Among other things, the Sunrise bitumen energy project in Alberta was restarted in June following the Fort McMurray wildfires, and production continues to ramp up with recent volumes of more than 30,000 barrels per day.

Also, the rejuvenated Tucker thermal bitumen production operation, located near Cold Lake, Alberta, averaged about 20,000 barrels per day in June, up from 4,000 barrels per day at the end of 2010.

Average upstream production in the second quarter was about 316,000 barrels of oil equivalent per day, down from 341,000 barrels in the first quarter, the company said, citing planned turnarounds, the interruption at Sunrise due to the Fort McMurray wildfires, and reduced volumes from a gas operation in China.

Downstream, work continues on the initial stages of a crude oil flexibility project at Husky's Lima Refinery in Ohio. Industrial Info is tracking capital projects valued at more than $300 million at the refinery.

For more information, please subscribe to the Industrial Info blog for more updates.

Leave a Comment

comments powered by Disqus

Recomended for you...

Entergy Kicks Off 980-MW St. Charles Power Station Project in Louisiana

Construction of the 980-megawatt (MW) St. Charles combined-cycle power station in Louisiana recently got under way. The project, which…

Sandy Creek Experiences An Outage At 900MW Plant In ERCOT

The Sandy Creek Energy Station in ERCOT has experienced an unplanned outage at its 900MW coal plant. Maintenance personnel…