Comments on this story are moderated according to our Submission Guidelines. This time, the response will likely take more time and focus on whether the combined company is capable of pulling so many different properties together and achieve the cost savings being promised. Responsibility. Some Cenovus investors will appreciate the change to a more integrated, stable company, while others will have preferred a more focused firm, according to Rafi Tahmazian with Calgary-based Canoe Financial. With any ownership change, there will no doubt be concerned employees at both companies wondering whether they will still have a job when the dust settles. The Saskatchewan Gathering System expansion is an ongoing upgrade to the existing system, including connections to eight new thermal production projects, line upgrades and extensions and enhanced safety measures at river crossings. The oil pipeline and tank storage facilities at the Husky Energy oil terminal in Hardisty, Alta. "The downside to that is a lot of the time synergies and efficiencies and cost containment usually means fewer jobs," said Rory Johnston, managing director and market economist at Price Street in Toronto, who described the deal as "massive announcement" in the sector. That's the big risk to investors, employees, and the overall stability of Alberta's oil and gas sector. Education News || Politics News || Journal News || Daily Local News || Lifetime Fitness || Sports News || Automotive News Source. Regardless of their stance, the big question is whether Cenovus can make the merger work. EDMONTON – A worker is in hospital after a fire erupted in an empty crude tank at the Husky Energy terminal in Hardisty Wednesday. Husky’s CEO says the combined company will be better able to achieve climate targets, such as the goal to have net-zero emissions by 2050. Cenovus CEO Alex Pourbaix will remain as chief executive of the merged company. Since Husky joined the conglomerate, onstream WCS has been blended at the Husky Hardisty terminal (now owned by HMGP). Regardless of their stance, the big question is whether Cenovus can make the merger work. While there are parallels to the deal three years ago, this move is also quite different. He took over from Brian Ferguson after the fallout from the ConnocoPhillips deal. While there are parallels to the deal three years ago, this move is also quite different. When the merger officially closes next year, the combined company will be worth $23.6 billion, including debt, according to the firms. Cenovus is merging with Husky Energy: What that means for jobs and the future of the oilpatch, CBC's Journalistic Standards and Practices. Box 500 Station A Toronto, ON Canada, M5W 1E6. By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. "It will allow us to make better returns in a tougher environment, so that's always always something we need to be looking to do," said Husky CEO Rob Peabody in an interview, adding it will also be easier to attract investment as a bigger company. With any ownership change, there will no doubt be concerned employees at both companies wondering whether they will still have a job when the dust settles. The merger will also continue the recent trend of Canadian companies buying up a bigger share of the oilsands, which is a repatriation, of sorts. One pressing issue is the fate of the White Rose expansion project near Newfoundland and Labrador, which Husky indefinitely halted as part of a wider review last month of its future in the area. Western Canadian Wählen Sie eines von Nordamerikas größten schweren Rohöl Strom. It is a priority for CBC to create a website that is accessible to all Canadians including people with visual, hearing, motor and cognitive challenges. Hardisty Terminal • Husky storage capacity: > 3.1 million barrels • Strategic importance: • Founding member • Connection to all major pipelines exiting Hardisty • Operational and storage tank space to customers • Blending of WCS (Western Canadian Select) Lloyd Terminal • Storage capacity: > 1 million barrels 43 . Cenovus was generally regarded as a pure-play Alberta oil company that rode the roller-coaster of commodity prices. It’s not just managing the combination of the two firms, but also making decisions about what areas of business to prioritize and whether to divest any properties or facilities. To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Instead of buying Husky, it’s a merger. Fire crews responded and … Now, it's adding much more refining capacity, in addition to branching out into owning gas stations, offshore terminals on the east coast and as far away as the Asia Pacific region. News AKMI is one of the Leading News Website in US, We are always happy to provide you Latest Updates of the US and World. October 29, 2020. The pipeline is expected to be in service in Q4 2019. The merger also comes during a recent wave of layoffs in the industry and will likely lead to further job losses. Newsroom. 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Cenovus was generally regarded as a pure-play Alberta oil company that rode the roller-coaster of commodity prices. Read our 2020 ESG Report. While the ConocoPhillips deal changed the makeup of Cenovus with the assets it acquired, the addition of Husky could present a more complex makeover. "They're going to have to emphasize the asset they bring from Husky [which is] the people that can help them manage that asset.". “It will allow us to make better returns in a tougher environment, so that’s always always something we need to be looking to do,” said Husky CEO Rob Peabody in an interview, adding it will also be easier to attract investment as a bigger company. Kyle Bakx is a Calgary-based journalist with CBC's network business unit. We reserve the right to close comments at any time. Investors. After the merger, his stake in the new company will be 15.7 per cent. The last time Cenovus Energy swung for the fences with a bold move to vastly expand, the mega-deal was a major flop. It was more than three years ago when the Calgary company snatched up the majority of ConocoPhillips' Canadian assets for $17.7 billion. Investors balked at the acquisition, the price tag, and the sheer amount of debt Cenovus took on to make the purchase. Now, Cenovus is again trying to pull off a home run with a $3.8 billion merger with Husky Energy. Investors balked at the acquisition, the price tag, and the sheer amount of debt Cenovus took on to make the purchase. The big question now is whether Cenovus can pull off the new merger; it's a risk to investors, employees, and the overall stability of Alberta's oil and gas sector. He took over from Brian Ferguson after the fallout from the ConocoPhillips deal. While the oilpatch has struggled for many years, this deal is happening in a remarkably unique time in the industry, with many companies bleeding money with historically low oil prices that even turned negative this year. View Details, Construction of a new 500,000 barrel crude oil operational tank will assist Husky Midstream in effectively managing its growing pipeline receipts, deliveries to major pipelines, as well as ongoing pipeline apportionments on behalf of its customers. This time the players, environment and the acquisition itself are all distinct. Commercial storage is being expanded at Husky Midstream’s Hardisty Terminal, offering prospective customers capacity in 300,000-barrel and 500,000-barrel tanks, including positions as small as 80,000 barrels.
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