In situ oilsands leader Cenovus Energy presented its annual investor update this week, and included two major projects in its five-year outlook.
That is, if new pipeline takeaway capacity is built out of the Western Canada Sedimentary Basin.
The company completed the 50,000-bbl/d Phase G expansion at its Christina Lake oilsands project earlier this year but is currently unable to fully bring the new production online due to Alberta’s oil curtailment.
Analysts with Peters & Co. noted that, contingent on the outlook for oil takeaway capacity, the company is considering combining Phase H at Christina Lake with a tie-back of its proposed Narrows Lake project, for total capacity of 65,000 bbls/d.
The earliest possible sanction decision for the $1.2-billion to $1.3-billion project would be the second half of 2020, followed by first steam in 2025.
Cenovus is also considering Phase H at its Foster Creek project, which would add 40,000 bbls/d of production capacity for an estimated capital cost of $600 million to $650 million.
Again, contingent on the outlook for oil takeaway capacity, the earliest possible sanction for Foster Creek Phase H would be late 2020, followed by first steam potentially in 2023, the company said.