Husky Energy Inc. is cutting its capital spending by $500 million in 2020-2021. 

In a conference call, the company reported it would be reducing its capital spending in 2020 by $100 million and by $400 million in 2021. The company revealed it cut about 370 jobs in October to better align its workforce with its lower capital spending plans.

Husky spokesperson, Kim Guttormson, says the spending is being directed towards projects that lower the company’s cost structure and improve their margins. She says it includes ongoing work on the two Lloydminster thermal projects which will be completed in 2020 as well as the Spruce Lake Central project in mid-2020 and the Spruce Lake North at the end of 2020.  

Other projects listed are the Edam Central project which is expected to be completed in 2022 and the Dee Valley 2 project in 2023. They will also be working on the Lloydminster Upgrader to increase the amount of diesel produced from 6,000 bbls/day to 10,000 bbls/day. The completion date for the upgrader is mid-2020.

Husky says average upstream production is expected to be in the range of 295,000 to 310,000 barrels of oil equivalent per day for 2020.