Cenovus Energy joins the billion barrel club
Cenovus Energy announced its one-billionth barrel of cumulative oil production out of Foster Creek and Christina Lake, making it the first SAGD operator to hit that milestone.
Both Foster Creek and Christina Lake use steam-assisted gravity drainage (SAGD) technology to pump heated bitumen out of the ground, commencing commercial operation in the early 2000s, as part of Encana Corp. Cenvous was founded at the end of 2009, when Encana spun-off its oil assets.
Both SAGD projects were jointly-held with ConocoPhillips until the spring of 2017, when Cenovus took a 100% ownership for almost $18 billion. Cenovus now produces about 360,000 bbl/day out of the oil sands, making it the largest in-situ operator in Alberta by a wide margin.
According to CEO Alex Pourbaix, the projects have contributed $25 billion in capital spending, and $3.2 billion in provincial royalty payments over the past two decades. Since 2004, greenhouse gas emissions intensity has been reduced by one-third, making it one of the least intensive facilities in the sand box.
Cenovus is due to release second quarter results on July 25, 2019.