Capex Data
For 2008, the Company has a capital program of $3.0 billion for the ongoing exploration and development of its asset portfolio in Western Canada, offshore Canada’s East Coast, Greenland, China and Indonesia. Husky’s production in 2008 is forecast to be between 385,000 to 410,000 barrels of oil equivalent per day.
The Midstream and Downstream capital program of $600 million will fund ongoing investment in Husky’s Canadian facilities as well as initial expenditures for expansion of the Lima and Toledo refineries. With the Lima Refinery’s full integration and the Husky/BP Toledo Refinery partnership, Husky’s crude upgrading and refining capacity is forecast to increase by more than 80 percent from 2007 levels to more than 300,000 barrels per day.
Future Plans
In Western Canada, work will continue to enhance recovery techniques and development in conventional areas and heavy oil production in 2007. The exploration expenditure of $210 million will be spent on natural gas in the deep basin and foothills of Alberta and British Columbia.
In the oil sands business, Husky will spend $330 million, including $18 million to ramp-up bitumen production at the Tucker Oil Sands, $232 million at the Athabasca Oil Sands region to progress the 200,000 barrel per day Sunrise Oil Sands Project, $31 million at Caribou Lake to drill delineation wells and advance engineering and $31 million to drill resource evaluation wells to further assess the Saleski oil sands lease.
Offshore Canada's East Coast, Husky plans to spend $290 million in 2007. The program includes drilling and completion of a seventh production well in the White Rose oil field and delineation of the O-28 discovery in the West Avalon Pool to the north of the existing White Rose development.
Internationally, Husky intends to drill an exploration well in block 04/35 in the East China Sea. In the South China Sea, the Company plans to begin facility studies for potential development of the Liwan gas discovery and a 3-D seismic program over blocks 29/26 and 29/06. In addition, Husky plans to spend $60 million to progress development of the Madura BD natural gas field offshore Indonesia and a 3-D seismic program over the recently acquired East Bawean II Block.
In Midstream, Husky will spend $380 million of which $225 million will be spent at the Lloydminster Upgrader and $155 million in its Pipeline and Infrastructure businesses. The Lloydminster Upgrader will complete its debottlenecking in mid-2007, which will increase its throughput from 77,000 to 82,000 barrels per day. The recently announced expansion of the mainline between Lloydminster and Hardisty in Husky's heavy oil pipeline network will be completed by the end of 2007.
The Refined Products group plans to spend approximately $140 million, with $50 million to complete construction of a 130-million litre per year ethanol facility at Minnedosa, Manitoba. The remainder of the capital will be spent on remodeling and maintenance of our retail and refining assets.
For the year 2007 production guidance, Husky estimates production of 390,000 to 410,000 barrels of oil equivalent per day. Light oil and natural gas liquids production is estimated to be 128,000 to 135,000 barrels per day; medium oil production is estimated to be 28,000 to 30,000 barrels per day; heavy oil/bitumen production is estimated to be 122,000 to 130,000 barrels per day; and natural gas production is estimated to be 670 to 690 million cubic feet per day.