Calgary-based Cenovus Energy Inc. announced on Tuesday it plans to invest between $1.2 billion and $1.4 billion in 2019, with the majority of the budget going to sustain base production at its Foster Creek and Christina Lake oil sands operations.
The company also plans to complete construction of the Christina Lake phase G expansion, it said.
Cenovus said the four per cent reduction in total planned capital spending, compared with its 2018 forecast, is largely the result of efficiency improvements at the company’s oil sands operations and reduced development plans for the Deep Basin as a result of the current commodity price environment.
It said the structural improvements it has achieved at its oil sands operations have resulted in reduced costs for maintaining base production and adding new production.
“We remain focused on delivering on our commitments to shareholders,” said Alex Pourbaix, Cenovus president and chief executive officer, in a statement. “With our low cost base and strong operations, we already set the performance standard for the in situ oil sands industry. And, as a result of our recent efforts to reduce costs and maintain capital discipline, I believe we are an even stronger and more resilient company than we were a year ago, and are well positioned to create additional value and return cash to shareholders over the long term.”
Cenovus said it expects to move all of its Calgary-based staff into Brookfield Place over the course of 2019, starting in January. The company has allocated approximately $100 million next year to essentially complete the build out of the Brookfield Place office space.
“Cenovus remains focused on reducing its real estate costs through an active subleasing program and is not renewing existing Calgary office leases as they expire. The company recently made significant progress in reducing its long-term fixed real estate costs by subleasing additional floors of The Bow. To date, the company has subleased approximately 40 per cent of its space at The Bow and will focus on subleasing additional excess office space as staff transfer to Brookfield Place,” it said.
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