Cenovus Energy predicts increased production by 2025 for new projects

Cenovus Energy, a Canadian energy company, forecasted higher oil and natural gas production in 2025. It expects to benefit from the new projects that will be coming online.

According to LSEG, the company expects upstream production of between 805,000 and 845,000 boepd by 2025. The midpoint is higher than analyst estimates of 820140 boepd.

The company anticipates between 770,000 and 810,000 boepd this year.

The U.S. Energy Information Administration has predicted that power consumption in the U.S. will increase in 2025, with data centers, manufacturing and other operations driving the demand. This could help gas producers like Cenovus.

Cenovus is on track to achieve important milestones in its major growth projects by 2025. These include the first oil production from Narrows Lake; the installation of West White Rose offshore installations and the start of drilling; and the preparations for the first steam at Foster Creek Optimization Project.

Narrows Lake, an oil sands facility in Alberta, is expected to produce 130,000 barrels of oil per day. The company also invests in the Foster Creek Optimization Project to increase its oil sands output.

Canadian firm predicted downstream throughput between 650,000 to 685,000 barrels a day (bpd) for 2025, compared to 630,000 to 670,000 bpd that was expected this year. Refinery utilization ranged from 90% to 95%.

Oil sands Production is expected to drop in the second quarter 2025 due to turnaround and maintenance activities. However, the company sees a ramp-up in the second half 2025.

The government expects to spend between C$4.6bn ($3.25bn) and C$5bn in 2025. This compares with an estimated C$4.5bn to C$5bn in 2024. (1 Canadian dollar = 1.4141 Canadian Dollars) (Reporting and editing by Shilpa Majumdar, Devika Syamnath).

(source: Reuters)