Business
Cenovus provides update on Foster Creek
First oil achieved at phase F CALGARY , Sept. 17, 2014 /CNW/ - Cenovus Energy Inc....
About this update from Cenovus Energy Inc.
[{"type":"text","content":"\n\n\nFirst oil achieved at phase F\n\n\nCALGARY, Sept. 17, 2014 /CNW/ - Cenovus Energy Inc. (TSX: CVE) (NYSE:\n CVE) achieved first oil production at its recently-completed Foster\n Creek phase F expansion earlier this month. Phase F is expected to add\n 30,000 barrels per day (bbls/d) of capacity, with production ramping up\n over the next 12 to 18 months. By year-end, production from phase F is\n expected to be approximately 5,000 bbls/d. Phases G and H are under\n construction and are expected to add another 30,000 bbls/d each with\n first production anticipated in late 2015 and 2016, respectively. This\n will bring total expected gross production capacity at Foster Creek to\n 210,000 bbls/d. Following the completion of phases F, G and H,\n optimization work is expected to increase total capacity by another\n 15,000 to 35,000 bbls/d.\n\n\nCenovus expects the F, G and H expansion and optimization projects can\n be completed with capital costs of between $35,000 and $38,000 per\n incremental barrel, better than industry average.\n\n\n\"In July, we indicated that capital costs for the F, G and H expansion\n were trending higher and we committed to providing additional\n information,\" said Brian Ferguson, Cenovus President & Chief Executive\n Officer. \"One of the key drivers of the cost increases is the impact of\n changes we made to the phases that we believe will result in better\n long-term plant reliability and production efficiency.\"\n\n\nChanges to the F, G and H expansion include improvements to the oil and\n water plant, safety systems, completion designs and the incorporation\n of recent regulatory changes. The revised cost estimate is based on\n actual costs for phase F, which Cenovus has used to update cost\n estimates for phases G and H and optimization.\n\n\nThe Foster Creek project has demonstrated consistent performance since a\n planned turnaround in late 2013, with production averaging between 90%\n and 95% of plant capacity. In July, production averaged 102,000 bbls/d\n as volumes were impacted by scheduled maintenance on Cenovus's\n cogeneration facility. August volumes averaged 119,000 bbls/d and\n September production continues to be strong. The company estimates a\n planned partial turnaround later in the month will have minimal impact\n on production volumes.\n\n\n\"Foster Creek is a cornerstone ass...