Skip to main content

Husky Energy cuts 2020 spending by US$1 billion

Published by
Oilfield Technology,


Husky Energy is to reduce its 2020 capital programme spending by US$900 million, which represents a 33% reduction in upstream spending.

“Husky has three important advantages: a strong balance sheet, an integrated corridor which includes a sizeable downstream and midstream segment, and offshore operations that include long-term gas contracts in the Asia Pacific region not linked to the price of oil,” said CEO Rob Peabody.

Given current market conditions Husky will commence the safe and orderly reduction, or shut-in, of production where it is cash negative on a variable cost basis at current prices.

Capital reductions

  • Investment in resource plays and conventional heavy oil projects in Western Canada has been halted, with a focus on optimising existing production and lowering costs.
  • Drilling of sustaining pads at all thermal operations has been suspended.
  • Lloydminster thermal projects scheduled to be delivered beyond 2020 have been deferred and will be reconsidered as market conditions improve.
  • In the Asia Pacific region, the development of the Block 15/33 oilfield offshore China has been deferred by a year. In Indonesia, development of the MDA-MBH natural gas field has been deferred. The Liuhua 29-1 field at the Liwan gas project is being advanced as planned, with first production expected by the end of 2020.
  • The company continues to review further capital adjustments in response to the current market environment.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13032020/husky-energy-cuts-2020-spending-by-us1-billion/

You might also like

Howden secures compressor contract for Majnoon oilfield, Iraq

Howden will supply two screw compressor packages to Majnoon oilfield, near Basrah, Iraq. With Howden’s compressor solution, the Majnoon oilfield will save 42 242 t of carbon emissions per year – the equivalent of annual fossil fuel emissions for 9100 cars.

 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

Upstream news Canada upstream news Oil & gas news