Cenovus Energy cuts additional $150 million from 2020 budget

Cenovus Energy Inc., Calgary, has cut its planned 2020 capital spending by an additional $150 million to $750-850 million in response to the low global oil price environment. Combined with the $450 million reduction reported Mar. 9, a total $600 million, or 43%, has been cut from the budget released in December. The company also is expecting cost reductions of $100 million and general and administrative cost reductions of $50 million compared with the initial December budget.

The remaining capital budget is focused on sustaining oil sands production and refining operations.

With its Mar. 9 update, the company reduced its forecast oil sands production by 6% to 350,000-400,000 b/d, and total production by 5% to 432,000-486,000 boe/d (OGJ Online, Mar. 10, 2020). Production numbers have not been cut with the additional capital expenditure reductions.