Crude-by-rail programme suspended by Cenovus

Crude-by-rail programme suspended by Cenovus


Cenovus Energy Inc. will temporarily halt its crude-by-rail program due to falling crude oil prices, it said in a statement. As a result, Cenovus will no longer make use of credits under the province of Alberta’s special production allowance programme.

The Canadian oil and natural gas producer is also reducing its 2020 capital spending by 32 per cent and deferring final investment decisions on major growth projects, it said in a press release. It estimated its 2020 oil sands production will average 350,000 to 400,000 barrels per day, about 6 per cent lower than the company’s guidance that was issued on December 9, 2019.

As a result of suspending its crude-by-rail business, Cenovus will no longer make use of credits under the province of Alberta’s special production allowance programme, which gives oil producers temporary curtailment relief equivalent to incremental increases in rail shipment.

Alberta established the programme to help address the transportation of oil during pipeline delays that are affecting the oil and gas sector.

For more information visit www.cenovus.com

25th March 2020