By Catherine Ngai and Nia Williams
CALGARY, Alberta, Sept 30 (Reuters) - Oil sands producer
Cenovus Energy CVE.TO is setting up its first marketing desk
outside Canada in Houston, Texas, to sell more of its heavy
crude to refineries in the Gulf Coast region, the company said
on Wednesday.
The move comes as the Calgary, Alberta-based company
prepares to cut 540 jobs over the next few weeks, in addition to
800 positions eliminated earlier this year, as low global crude
prices continue to hurt oil and gas producers. It had 3,545
employees as of the end of last year.
Cenovus slashed its quarterly dividend by 40 percent in July
after net income and operating profits fell in the second
quarter. ID:nL3N10A4AV
Despite weak prices, Cenovus' crude production, currently
around 200,000 barrels per day, is expected to grow by about 25
percent in the next 18 months as new phases of its Foster Creek
and Christina Lake oil sands projects come online, spokesman
Brett Harris said.
The U.S. Gulf Coast is North America's largest refining
complex and Harris said the new Houston office will be an
important part of the company's strategy to improve market
access for its crude.
"We are already selling into that market but there's excess
heavy oil (refining) capacity down there and a tidewater port,"
Harris said. "It's pretty important for Canada now, and for
growth."
Cenovus ships crude to the Gulf Coast on the Flanagan South
and Seaway pipelines, and also owns a rail terminal in Alberta
that can be used to transport crude south when Canadian crude
differentials are wide enough to cover the cost.
Harris said Cenovus will have five staff in the new Houston
office, and one position has already been filled.
The Houston desk will market all production from Cenovus'
oil sands projects, which are joint ventures with Conoco
Phillips COP.N .
(Editing by Stephen R. Trousdale)