Canada’s Cenovus Energy Inc. (NYSE: CVE) said on Dec. 11 it would reduce its capital spending for 2019 by 4% amidst a broader turnaround plan following its highly criticized deal with ConocoPhillips (NYSE: COP).
The company said it plans to invest between CA$1.2 billion (US$901.1 million) and CA$1.4 billion in 2019, with the majority of the budget going to its Foster Creek and Christina Lake oil-sands operations.
Cenovus raised its 2019 oil-sands production forecast by 3% to 377,000 barrels per day (bbl/d) to 395,000 bbl/d as it expects increased activity at its Christina Lake operations in Alberta. The company said the production forecast does not include the impact of mandated production curtailments scheduled to take effect on Jan. 1.
The company also said it expects crude-by-rail volumes to ramp up to about 100,000 bbl/d by the end of 2019.
In September, the oil and gas producer had signed three-year deals with Canada’s two major railways Canadian National Railway Co. and Canadian Pacific Railway Ltd. as pipelines run at full capacity.
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