FROM ALBERTA TO THE ATLANTIC, CENOVUS IS ADVANCING CANADIAN ENERGY
CK Hutchison and its Chairman’s family trust are major shareholders of Cenovus, with CK Hutchison and the Li family holding approximately 30% of Cenovus shares. They have a long history in Canada’s oil industry, mainly through acquiring Husky Energy in 1987, which marked the company’s first overseas acquisition. Under CK Hutchison’s ownership for more than three decades, Husky diversified its asset base through strategic downstream acquisitions across North America and expanded to Asia by purchasing an interest in offshore production assets in the South China Sea. In 2021, Cenovus acquired Husky Energy in an all-share transaction valued at C$23.6 billion, creating the second-largest integrated Canadian oil and gas company and making CK Hutchison and the Li family Cenovus’ largest shareholders.
Cenovus: Canada’s second largest upstream oil and gas producer
Canada is the fourth-largest oil-producing country in the world and Cenovus, headquartered in Calgary, is one of its leading integrated oil and natural gas companies. With the 2024 upstream production of nearly 800,000 barrels of oil equivalent per day, Cenovus is the second-largest upstream oil and natural gas producer in Canada. The company’s upstream assets include:
- oil sands projects in northern Alberta,
- thermal and conventional crude oil, natural gas and natural gas liquids (“NGLs”) projects across Western Canada,
- crude oil production offshore from Newfoundland and Labrador,
- and natural gas and NGL production offshore from China and Indonesia.
In China, Cenovus has partnered with China National Offshore Oil Company to engage in natural gas exploration and development, investing more than RMB 43 billion in the South China Sea over the past 24 years. The Liwan Gas Project is China's first offshore deepwater gas field development project and one of the fastest-growing large-scale deepwater gas field development projects in the world. Since it began production in 2014, the Liwan Gas Project has supplied more than 1.4 trillion cubic feet of natural gas and nearly 62.2 million barrels of condensate to multiple power plants in the Greater Bay Area.
This is in addition to Cenovus’ significant downstream capacity across North America with upgrading and refining operations in Canada and the US, as well as commercial fuel operations.
Since its inception in 2009, Cenovus has been recognised as a leader in innovation, specifically with advancing steam-assisted gravity drainage (SAGD) drilling techniques at its oil sands assets to produce barrels of oil with low steam-to-oil ratios.
Cenovus leads the charge in Alberta’s oil sands and offshore Newfoundland
Cenovus’ operational portfolio has a foundation of oil sands assets in northern Alberta, deeply rooted in the oil-rich regions of the province. This includes the company’s Christina Lake and Foster Creek assets, which are two of the largest and most productive SAGD sites in Canada. At these assets, Cenovus uses SAGD to drill horizontal wells and inject steam to extract bitumen. This method of drilling significantly decreases the land impact on the surrounding environment and does not produce tailings ponds. The company has been a pioneer in advancing SAGD technology for more than two decades, helping it to access new growth opportunities at its assets such as the Narrows Lake expansion.
Two significant Expansion milestones
The company expects the first production of oil from its Narrows Lake expansion project at the Christina Lake oil sands in Alberta and installation of the concrete gravity structure (CGS) and topsides as part of the West White Rose Project, situated offshore from Newfoundland and Labrador. These are two landmark achievements for the company as it continues to expand growth projects in 2025 and beyond.
Narrows Lake Extension Project
Once flowing, oil from the Narrows Lake project (top photo) will be transported via a 17km pipeline to Cenovus’ Christina Lake oil sands central processing facility. The extension is expected to deliver an additional 20,000 to 30,000 barrels of oil per day to the processing facility. The company is also advancing optimisation projects at its Foster Creek and Sunrise oil sands to boost production and improve efficiencies at the assets.
West White Rose Project
On Canada’s east coast, the West White Rose Project is more than 90% complete after the CGS was successfully towed 350km offshore to the White Rose field and safely installed in June of this year. Now the CGS base awaits the arrival of the topsides structure, which is currently en route and scheduled to be connected later this summer. With the first oil expected in 2026, the West White Rose Project will provide Cenovus an additional 40,000 barrels of oil equivalent/day and expose the company to high-netback Brent crude oil pricing.
The company is also a leader in social investment, committed to supporting local communities and working closely with Indigenous nations near its operations. In 2020, Cenovus launched its Indigenous Housing Initiative (IHI), an unprecedented social investment that addresses housing conditions in six Alberta Indigenous nations near its oil sands operations in northern Alberta. Through the IHI, Cenovus has committed more than C$50 million and funded 161 homes to date.
The company is an important contributor to the Canadian economy by providing energy to different markets across the world, and helping to generate thousands of jobs directly or indirectly in Alberta, British Columbia, Saskatchewan, and Newfoundland and Labrador. Through its activities, Cenovus contributes billions of dollars in federal and provincial income taxes and royalties, underscoring its vital role in the nation’s financial landscape.
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Energise the world to make people’s lives better
With its strategically developed growth projects set to enhance its already integrated asset portfolio, Cenovus has positioned itself to remain an energy provider of choice for decades to come. The company’s extensive operations, strong balance sheet and commitment to developing its assets responsibly will continue to drive its future success in the energy sector.
As the world grapples with the complexities of an evolving energy industry and geopolitical tensions, Cenovus’ strategic vision and innovative approach to maximising value from its assets positions the company to remain resilient in a changing world.