Despite shelving West White Rose for the 2021 construction period, Husky executives remain optimistic about the future of the project.
Earlier this week, it was announced that Husky was being bought out by Cenovus Energy Inc. in an all-stock deal valued at $23.6-billion.
At a teleconference yesterday regarding Husky’s third-quarter results, CEO Rob Peabody explained that because construction happens on a seasonal basis, they only have one chance per year to decide whether to move forward with the project or defer it a year.
Peabody says the project has reasonable economics at low oil prices moving forward, but those low prices also limit the amount of money coming into the company, which means they need to pace spending.
They are talking with the province on ways government may be able to help. All price scenarios for West White Rose result in the company making a profit.
Source: VOCM | This text was excerpted from the media outlet cited on October 30, 2020 and is provided to Noia members for information purposes only. Any opinion expressed therein is neither attributable to nor endorsed by Noia.