field facts
the bitumen refinery. Simultaneously, the feedstock providers
(Canadian Natural for 12,500 bbl/d and Alberta Petroleum Marketing Commission for 37,500 bbl/d) approved the target toll amounts and have now committed to the 30-year tolling agreement. Canadian Natural will earn a return on the project of 10 per cent on its equity investment, and additional margin on any excess capacity available over design capacity.
The majority of equity has already been contributed to the partnership. Target commencement of deliveries is mid-2016.
There is potential to further expand the downstream capacity of the North West Redwater refinery project from its 50,000 bbl/d of bitumen facility capacity in Phase 1 to 150,000 bbl/d of bitumen facility capacity.
Crescent Point to increase production
Crescent Point Energy has announced a $1.35-billion capital development budget for 2013, expected to increase average daily production to 112,000 boe/d.
“In 2013, we will focus on organic growth and the integration of assets from key acquisitions, and continue to build upon our success over the last couple of years,” says president and CEO Scott Saxberg. “The 2013 budget is focused on the development of our major oil resource plays in the Bakken, Shaunavon and Uinta Basin and on enhancing our portfolio of emerging resource plays.”
In total, approximately $1.17 billion, or 87 per cent of the budget, is to be allocated to drilling and completions, with a total of 455 net wells planned. The remaining $180 million of the budget is for investments in infrastructure, undeveloped land and seismic across all core areas.
Crescent Point expects to spend approximately $510 million in the Viewfield Bakken and Flat Lake areas of southeast Saskatchewan, including drilling about 163 net wells in the Viewfield area. In the
Shaunavon area of southwest Saskatchewan, the company plans to spend $283 million of the 2013 budget, including drilling about 89 net wells, which will target both the Lower Shaunavon and the Upper Shaunavon plays.
Canadian Natural announces 2013 goals
Heavy oil is a significant contributor to the growth in 2013 for Canadian Natural.
The company plans to generate approximately $7.6 billion of cash flow and $0.7 billion of free cash flow this year.
President Steve Laut says, "our 2013 budget reflects the strength and breadth of our assets. Our capital program is balanced in allocation to near term growth and longer term growth that will support and drive sustainable free cash flow in 2013 and beyond. We have developed the largest reserve base in our peer group and this provides us options to allocate capital to the highest return projects. This is evident in our ability to grow crude oil and NGL volumes in 2013 by nine per cent while spending only half our capital budget on projects that add production in 2013. Heavy oil is a significant contributor to the growth in 2013. As new conversion capacity and infrastructure come online in 2013 we expect to benefit from stronger Canadian heavy oil pricing."
Calgary Chamber backs Nexen deal
The Calgary Chamber announced it welcomes the Government of Canada’s approval of the CNOOC-Nexen and Petronas- Progress deals.
“Last week’s decision was the right first step towards demonstrating to private foreign investors that we are open for business,” says Ben Brunnen, director of policy and government affairs and chief economist with the Calgary Chamber. “Canadian oil sands represent 56 per cent of total private sector oil investment opportunities worldwide.”
In a presentation to the House of Commons
Standing Committee on Finance, Brunnen urged the federal government to undertake a stand-alone review of the Investment Canada Act, with consideration for the following:
• Better clarity, consistency and transparency in the application on the “net benefit” test.
• Increase substantially the threshold at which point the federal government is legislated to undertake a review.
• Include reciprocity to ensure Canadian companies are treated fairly abroad.
• Set specific criteria for state-owned companies to meet “net benefit” requirements in order to protect the Canadian economy from potential foreign government interference.
Suncor to balance growth in 2013
Suncor Energy’s 2013 plan includes $7.3 billion in capital spending balanced between growth and sustaining projects. Planned average production of 570,000 to 620,000 barrels of oil equivalent per day is expected, including an increase of about 12 per cent in oilsands production year over year.
Approximately $3.3 billion of the 2013 capital spend is expected to go towards growth projects, with nearly half of that growth capital earmarked for advancing exploration and production projects including Hebron, Golden Eagle and East Coast Canada asset development. In oil sands, the company anticipates spending over $1.2 billion to support near-term production growth in Insitu and Base and funding longer-term growth projects. Refining and Marketing growth capital of $55 million will largely be deployed on projects to prepare the Montreal refinery to receive shipments of western crude.
"Our 2013 capital plan demonstrates our commitment to be absolutely diligent in pursuing those projects expected to provide profitable, long-term growth for shareholders," says Steve Williams, president and CEO.
THE WESTERN CANADIAN PIPELINE | WINTER 2013 21
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