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UPDATE 1-Husky Energy raises 2017 capex, production forecasts

Published 2016-12-13, 08:00 a/m
© Reuters.  UPDATE 1-Husky Energy raises 2017 capex, production forecasts
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Dec 13 (Reuters) - Husky Energy Inc HSE.TO raised its 2017 production forecast and said it would set aside more money for capital expenditure as its board had sanctioned several new projects.

Canada's No. 3 integrated oil company said it expected average production of 320,000-335,000 barrels of oil equivalent per day (boe/d) in 2017, compared with 318,000-320,000 boe/d in 2016.

The company, controlled by Hong Kong billionaire Li Ka-shing, also forecast 2017 capital expenditure of C$2.6 billion-C$2.7 billion ($1.98 billion-$2.06 billion), up from C$2 billion in 2016. LCOc1 has risen nearly 50 percent this year through Monday's close as major oil producing countries agreed to cut output to soak up a supply glut and boost prices.

The company's overall sustaining and maintenance capital requirements have fallen about 25 percent over the last two years and are forecast to be in the range of C$2.2-C$2.3 billion for 2017, Husky said.

The Calgary-based company also forecast average annual production of 40,000-44,000 boe/d at its Sunrise oil sands project in 2017, compared with 35,000 boe/d in 2016.

The Sunrise project, located in northeast Alberta, is Husky's joint venture with BP Plc BP.L .

($1 = 1.3122 Canadian dollars)

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