Canada's Cenovus says would consider refinery acquisitions
(Reuters) Canadian oil and gas producer Cenovus Energy Inc said on Thursday it would consider refinery acquisitions in areas including the US Gulf coast region, provided the opportunity offered good value and was easily accessible for Canadian crude.
Chief Executive Brian Ferguson, speaking on a 3Q earnings call, said integrating Cenovus's oil production in western Canada with its downstream business was core.
"It's very consistent with strategy and really revolves around how do we improve the margin on every barrel that we can produce," he said. "There would be a whole laundry list of items that would have to be accomplished starting with very good value."
The company has a 50% share in two US refineries operated by Phillips 66 with a combined gross capacity of 460 Mbpd, and recently completed a de-bottlenecking project at the Wood River, Illinois plant that added 18 Mbpd of capacity.
Cenovus is also updating cost estimates for Phase G of its Christina Lake thermal plant in northern Alberta, which was deferred after crude prices slumped in 2014. It was one of nearly 20 oil sands projects put on hold by producers.
"We have been clear about our capital priorities within the oil sands, and that Christina Lake phase G will be the first project in the oil sands to resume construction," Ferguson said, adding that the company would give more details in December.
The company also narrowed its full-year oil and gas production forecast to 266 Mbpd -272 Mbpd of oil equivalent.
Cenovus reported a 3Q loss due to asset impairment charges resulting from declining heavy oil and natural gas prices.
Reporting by Nia Williams; Additional reporting by John Benny; Editing by Jonathan Oatis and Andrew Hay
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