Husky Slashes Maintenance, Sustaining Capital, Reports Ramp Up at Sunrise Operations in Alberta Oil Sands
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.
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