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Thursday, August 6, 2020
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VOLUME 3 I ISSUE 6
14
WEEKS
56
LOCAL
VIOLET EYES OPTOMETRY 780-875-0099
Husky Energy Upgrader bubble in place GEOFF LEE WRITER
.................................. Husky Energy will begin a major turnaround at the Lloydminster Upgrader in September with special health and safety measures in place to safeguard contractors and employees from COVID-19. The six-week turnaround, deferred in April due to COVID-19 safety concerns, will employ up to 3,000 external contractors at the peak maintenance for day and night shifts. The work being done includes inspecting, cleaning and replacing equipment, critical for safe and reliable operations at the Upgrader. “Our priority is and will remain the health and safety of our workforce, their families and the community. We have carefully evaluated the local COVID-19 situation and will continue to monitor it closely,” said Husky spokesperson Kim Guttormson on Wednesday. Husky is implementing new health and safety protocols before and during the turnaround including a strict policy against being on-site if ill along with temperature checks before workers come onto site. The measures include an isolation protocol for indiI N S P I R AT I O N
*See store for more details
D R I VE S
viduals exhibiting COVID-19 symptoms. There are also enhanced cleaning protocols to follow with staggered breaks to reduce the number of people together and wearing masks when a safe two-metre distance can’t be maintained. “Any potential exposure will be assessed and handled following health authority direction,” said Guttormson. “We are closely following the advice and direction of health authorities and we are consulting independent medical expertise. We are working with our employees and contractors to address any concerns they may have.” The turnaround will include increasing diesel capacity at the Upgrader from 6,000 barrels a day to nearly 10,000 bbls/day. News of the fall turnaround initially came during Husky’s second quarter conference call on July 30 marked by a reported three month net-loss of $304 million from the full impact of the pandemic and market conditions. Overall revenue in the quarter declined by nearly 55 per cent from the impact of COVID-19 and the global market downturn, but the company managed to match
Jamie Harkins Meridian Source
Husky Energy’s six-week turnaround will employ up to 3,000 external contractors.
cash outflows with cash inflows. “The actions we took included cutting 2020 capital spending in half by $1.7 billion, targeting about $150 million in cost efficiencies, reducing capital spending at the Superior Refinery and in conjunction with the (Husky) Board lowering
I N N O VAT I O N
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the dividend,” said CEO Rob Peabody. The Lloydminster Asphalt Refinery operated at full rates in the quarter, however, averaging 28,200 bbls/ day due to strong asphalt pricing. Husky currently has about 30,000 barrels of heavy oil shut-in from 80,000 bar-
rels of shut-in cold, conventional and thermal oil production in the Lloydminster and Cold Lake areas at the start of the quarter in April. Peabody says the levers are in place to ramp up more production in the third quarter dependent on market conditions. He said with the prices they are seeing right now most of that could not contribute positive free cash flow to Husky if they brought it on. Husky plans to keep those barrels until they are more comfortable the market can absorb them. Peabody noted recently the demand for refined products has been recovering. Steaming also started recently at the 10,000 bbls/ day Spruce Lake Central thermal in the Lloydminster area with first oil expected in the third quarter. Peabody noted while throughput volumes at the Lloydminster Upgrader were reduced earlier in the quarter, they’ve since been ramped back up in line with increased demand. “With demand for refined products recovering current production from the integrated corridor businesses is around 190,000 bbls/day,” said Peabody.
STANDARD FEATURES INCLUDE: β
WITH
SELLING PRICE
DOWN
INCLUDES FREIGHT AND FEES
LLOYDMINSTER HONDA
,
• MULTI-ANGLE REARVIEW CAMERA • TURBOCHARGED 1.5L ENGINE • ECON MODE & ECO ASSISTTM • REMOTE ENGINE STARTER
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