Cenovus considers reviving Christina Lake Phase G, for the right price
Cenvous Energy reported a third quarter net loss of $251 million, including impairment charges related to the revaluation of two properties. Some key highlights for the third quarter:
- Total production from the oil sands averaged 153,591 bbl/day.
- Foster Creek averaged 148,000 bbl/day in Q3 (74,000 net to Cenovus), 3% higher than last year.
- First oil was achieved at Foster Creek phase G, which will add another 30,000 bbl/day of capacity to the SAGD facility over the next 18 months.
- Production from Christina Lake has risen to 160,000 bbl/day (80,000 net to Cenovus), a 5% increase from the previous year.
- Christina Lake phase F is currently in the commissioning and start-up phase, with first oil expected in November. This latest phase of expansion will add 50,000 bbl/day of gross capacity by the end of next year.
- A new 100 megawatt cogeneration plant is currently being commissioned at Christina Lake.
- Operating costs have declined 9% from the same time last year, now averaging $6.37/bbl.
Combined gross output from Foster Creek and Christina Lake is on track for 390,000 bbl/day. CEO Brian Ferguson says "Christina Lake phase G will be the first project in the oil sands to resume construction," promising to provide more details in December. Ferguson remains committed to making his company cost competitive with US tight oil production, which has a considerably lower cost structure.
The company also says it is considering buying a refinery in the Gulf Coast in order to improve margins for its Canadian oil production. Cenovus already has a 50% interest in two US refineries, jointly owned with Phillips 66, with a gross refining capacity of 460,000 bbl/day.
Total oil production came in at 208,072 bbl/day, down 1% from the previous year. Natural gas production also declined almost 9% to 392 billion cubic feet per day. Non-fuel operating costs are down to $8.02/bbl in Q3, 14% lower than the same time last year.
Full year 2016 production guidance was adjusted to a range of 266,000 to 272,000 boe/day.