CALGARY (CP) -- Husky Energy Inc. said Tuesday it plans to spend C$2.85 billion in 2006 to develop its oil producing properties and expects production of 360,000 to 390,000 barrels of oil equivalent per day for the year.
The money will be spent to complete Husky's Tucker oilsands project near Cold Lake, Alta., attain peak oil production from the East Coast White Rose offshore field and the develop f upstream assets in Western Canada and offshore China and Indonesia.
''Husky Energy demonstrated its ability to execute megaprojects with the on-time, on-budget completion of the White Rose Project in 2005,'' Husky president and chief executive John Lau said in a release.
''Our 2006 capital expenditure program is to ensure the completion of other major projects in the coming year, including the Tucker oilsands project, a 130-million litre per year ethanol facility at Lloydminster, Sask., and the clean fuels project expansion at our Prince George Refinery.''
The company said it plans to spend C$2.2 billion on its upstream assets, about C$1.5 billion in Western Canada, outside of oilsands, focusing on natural gas exploration in Alberta and B.C., heavy oil assets in Alberta and Saskatchewan, the drilling of two test wells at the Summit Creek B-44 oil discovery and test a new prospect in the Northwest Territories.
About C$100 million will go toward expanding production of natural gas from coal or coal bed methane.
Calgary-based Husky [TSX:HSE] will spend C$230 million on its oilsands projects including C$145 million on the Tucker oilsands project. About C$60 million will go to development of the Sunrise project near Fort McMurray, Alta., and C$25 million to drill resource evaluation wells at the Caribou Lake and Saleski oilsands leases.
Other spending includes:
- C$350 million on the White Rose offshore oilfield to boost production to an estimated peak of about 100,000 bpd by mid-2006.
- C$57 million on interests in the South and East China Seas.
- C$340 million on midstream and $260 million on refined products.
Light oil and natural gas liquids production is estimated to be between 103,000 and 116,000 barrels per day in 2006, medium oil production between 29,000 and 32,000 barrels per day; heavy oil production between 115,000 and 120,000 barrels per day and natural gas production between 680 million and 730 million cubic feet per day.
(c) The Canadian Press 2005
