Husky says it is continuing to work with the provincial government to discuss how new federal funding can support the long-term success of the White Rose project and the offshore, but admits, the possibility of abandoning the project remains on the table. This comes after word that Cenovus intends to buy out the company.
Husky cancelled construction on West White Rose for the 2021 season following a review in September.
Husky says it will continue to operate as a separate, independent company if the merger with Cenovus closes. Once that process is complete, additional work will be undertaken to review all assets and determine its go-forward business case according to Husky officials in Calgary.
Husky tells VOCM News West White Rose continues to be key to extending the life of the White Rose oilfield in the offshore, however, all options are on the table and “accelerating abandonment remains a possibility.”
Earlier Story
Shares of Cenovus Energy are down following the merger in the oil industry while Husky’s shares are up. Husky and Cenovus, both based in Calgary, are joining forces in these troubling economic times.
The White Rose expansion project, with most of its onshore component in Argentia, was mothballed after the federal and provincial governments declined an offer to invest.
Larry Short, a portfolio manager with Short Financial in St. John’s, wasn’t surprised by the merger as it’s reflective of what’s happening in North America. There was no mention of Husky’s east coast operations in the news release announcing the merger, but Short doesn’t see that as anything significant.
Short says Husky is in a healthier position today than it was on Friday before the merger.
