CALGARY – Cenovus Energy Inc. is aiming to grow its production next year by 21 per cent, as new phases of its Christina Lake oilsands project in northern Alberta come into service.
The Calgary-based oil producer (TSX:CVE) said Wednesday it expects its production to average 163,000 barrels per day in 2012.
Phase C of the company’s flagship Christina Lake property is expected to reach full capacity by the middle of next year, while Phase D is now targeted to start up at least three months ahead of schedule at the end of 2012. In all, Cenovus’ share of Christina Lake production is expected to average between 26,000 and 29,000 barrels per day in 2012 – more than double its average rate this year.
Christina Lake and the nearby Foster Creek development are part of a 50-50 joint venture with Houston energy giant ConocoPhillips. The partnership also includes interests in two U.S. refineries.
“I believe that Cenovus has distinguished itself through our ability to grow our bitumen production at industry-leading capital efficiencies,” Cenovus CEO Brian Ferguson said at the company’s investor day in Calgary.
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“We have consistently brought on new phases at Foster Creek and Christina Lake ahead of schedule and under budget.”
Cenovus also expects to see growth at its Pelican Lake oil pool in northern Alberta, as well as from its assets in southern Saskatchewan.
Cenovus is on the hunt for a joint venture partner to help it develop its Telephone Lake assets. In October, Ferguson said interest was flowing in from all over the world – Beijing, Mumbai, Houston, London and Calgary.
“The strategic process at Telephone Lake is proceeding well. Given the substantial interest that we have seen in the data room and management presentations, I now expect that the process is likely to carry into the new year,” Ferguson said Wednesday, adding he expects to provide an update in the first quarter of next year.
Cenovus is also ratcheting up its spending for next year. It plans to spend between $3.1 billion and $3.4 billion, about 23 per cent higher than its capital spending budget for this year.
In October, the oil producer boosted its 2011 budget to a combined $865 million to $885 million as it expanded its oilsands operations at Foster Creek and Christina Lake.
Cenovus shares fell a penny to $33.06 in mid-day trading on the Toronto Stock Exchange.
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