Husky Resumes Ops at Lloydminster

Husky reported that its Lloydminster heavy oil upgrader has now resumed normal operations. The Upgrader is presently operating at 75 to 85 percent of capacity and is ramping up towards full production.

A minor fire, which took place on February 2, damaged a hydrocracker fractionation unit, which supplies product to the coker. While damage was not extensive, repairs took place in a congested space under extremely cold weather conditions. Husky's focus has been on ensuring the safety of its personnel and the thoroughness of the repair work.

The cause of the fire has been determined. A pipeline froze and burst, releasing fuel onto equipment. The cause has been analyzed and repairs have been made incorporating measures to prevent a similar incident in the future.

The overall pre-tax impact, including repair costs, is estimated as an opportunity cost of between $80 to $90 million which represents the facility running at reduced rates and considering the market price environment during the affected period and through ramp up. Steps undertaken to mitigate financial impacts included maintaining daily production at approximately 40 to 50 percent of normal rates during the repair process.