Cenovus Energy to Lower Capital Spending in 2016
Dec 10 (Reuters) – Canadian oil producer Cenovus Energy Inc said it expects to lower its capital budget for 2016 by 19 percent, from its estimated budget for this year, in response to tumbling crude prices.
The Calgary-based company expects to spend between C$1.4 billion ($1.03 billion) and C$1.6 billion in 2016, down from its estimated 2015 budget of C$1.8 billion-C$1.9 billion.
Cenovus, which jointly operates Foster Creek and Christina Lake oil sands projects with ConocoPhillips, plans to use about 80 percent of its 2016 budget to sustain capital investments, with the remaining budget to be allocated mainly to oil sands growth projects.
The company said even if Brent crude prices remain in the $40 per barrel range through 2016, company expects to continue to fund its current dividend level.
Brent futures were trading at $40.16 per barrel on Thursday.
The company, which has already been cutting jobs, said it will focus on achieving additional cost reductions next year.
($1 = C$1.35 Canadian dollars)
(Reporting by Sneha Banerjee in Bengaluru; Editing by Shounak Dasgupta)
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