Cenovus boosts production, spending forecast as oil prices hold

Derek Decloet July 28, 2022

(Bloomberg) ­— Oil producer Cenovus Energy Inc. said it may spend hundreds of millions more than planned this year as it absorbs an acquisition in Alberta and restarts an offshore project off the coast of Newfoundland. 

The Calgary-based company expects capital spending of C$3.3 billion to C$3.7 billion, according to a statement Thursday. Both figures are C$400 million ($312 million) higher than previous forecasts.  

Cenovus said it expects to produce the equivalent of 780,000 to 810,000 barrels a day this year. At the midpoint of that range, it’s an increase of 15,000 b/d, partly because of a deal struck in June to buy BP Plc’s 50% interest in the Sunrise oil sands project in Alberta.  

The company increased its forecast for spending on conventional production by C$100 million because of inflation in labor and equipment, increased drilling activity and other costs. Its offshore group will add another C$100 million in spending for preliminary work on the restart of the West White Rose Project, which the company anticipates will go into production in 2026. 

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