Husky approves new oilsands project
Monday, November 29, 2010
CBC News
Calgary-based Husky Energy made three major announcements Monday, saying it has given the go-ahead for a $2.5-billion oilsands project, is cancelling plans to sell off its operations in southeast Asia and has acquired oil and gas properties in western Canada for $860 million.
The company said its board has agreed to proceed with the first phase of its Sunrise oilsands project in northern Alberta. That is due to produce 60,000 barrels per day when completed.
Husky Energy 3-month chartHusky Energy 3-month chart
Husky is a co-owner of Sunrise with BP.
Husky has also decided to stick with plans to develop the Liwan natural gas field in a joint venture with the Chinese state-owned CNOOC in order to take advantage of rising demand from China. Earlier, it had said it was looking at divesting the project.
Liwan is due to start production in 2013.
Husky also said it will buy properties in Alberta and B.C. from ExxonMobil Canada.
The assets will increase Husky's daily production by the equivalent of 33,000 barrels of oil.
Husky said it will fund the deal by selling $1 billion in new stock.
Its shares fell 97 cents, or 3.8 per cent, to $24.55 on the Toronto Stock Exchange early in the afternoon.
The company said on Friday it was preparing to raise up to $3 billion through the sales of bonds or shares over the next two years.
Husky, Canada's third-largest oil producer and refiner, said its capital budget will be $4.86 billion in 2011. That's 20 per cent higher than it's planning to spend this year.
With files from The Canadian Press
http://www.cbc.ca/money/story/2010/11/29/husky-approves-sunrise.html
