Husky Energy is taking a collection of actions to fortify its enterprise in response to difficult world market situations.
These initiatives mirror the Company’s dedication to capital self-discipline, which incorporates sustaining the energy of its steadiness sheet whereas defending worth in an prolonged low commodity value atmosphere. Husky’s drive to enhance course of and occupational security is unaffected and stays a high precedence.
“Husky has three necessary benefits: a robust steadiness sheet, an Integrated Corridor which features a sizeable downstream and midstream section, and Offshore operations that embody long-term fuel contracts within the Asia Pacific area not linked to the worth of oil,” mentioned CEO Rob Peabody.
Given present market situations Husky will start the protected and orderly discount, or shut-in, of manufacturing the place it’s money destructive on a variable value foundation at present costs.
2020 Capital Program Reduced by $900 Million; Further Cost Reductions of $100 Million
• Investment in useful resource performs and standard heavy oil initiatives in Western Canada has been halted, with a deal with optimizing present manufacturing and reducing prices.
• Drilling of sustaining pads in any respect thermal operations has been suspended.
• Lloydminster thermal initiatives scheduled to be delivered past 2020 have been deferred and will likely be reconsidered as market situations enhance.
• In the Asia Pacific area, the event of the Block 15/33 oil discipline offshore China has been deferred by a yr.
• In Indonesia, growth of the MDA-MBH pure fuel discipline has been deferred. The Liuhua 29-1 discipline on the Liwan Gas Project is being superior as deliberate, with first manufacturing anticipated by the tip of 2020.
The Calgary-based firm continues to evaluate additional capital changes in response to the present market atmosphere.
Additional value discount initiatives totalling roughly $100 million in 2020 will embody a discount in effectively servicing actions on uneconomic manufacturing, and a halt in exploration exercise.
(Source: Husky Energy – LLoydminster Thermal Project)
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