Husky to move forward with investments at Lima Refinery in 2009
December 17, 2008 – 7:52 PM
Bob Blake
LIMA – Husky Energy Inc. on Tuesday announced plans to spend more than $2.6 billion on capital expenditures in 2009, including investments in the company’s refinery in Lima.The company is planning to spend as much as $315 million on “downstream” projects, including properties in Lima and Toledo. Graham White, a Husky spokesman, said no specific breakdown is available for how much of the $315 million the company is targeting for investment in the Lima Refinery.
“For 2009 it really shouldn’t have much of an impact. It’s actually business as usual,” White said. “We’ve actually increased spending, it’s one of the few areas we’ve actually increased spending. Our intention is just to target our 2009 spending toward maintenance, asset integrity and regulatory compliance for both the Toledo and Lima refinery.”White said a planned investment of $2 billion to $3 billion to convert the Lima Refinery to process heavy crude oil drawn from the company’s Canadian fields is still moving forward.“We are in some of the conceptual design and development phases of these reconfiguration projects. That is part of what the increase is for,” White said. “We’re staying away from time frames. It’s a volatile industry and it’s something we’re careful about putting time frames around. The start and finish of projects depends on resources and production levels and volumes and that sort of thing.”
The company’s 2009 capital projects are spread out among the company’s upstream Canadian oil fields as well as international developments in China and Indonesia.
“The global financial turmoil and huge volatility in commodity prices has resulted in a challenging period for our industry,” said John C.S. Lau, the company’s president and chief executive officer. “While 2008 is another record year for Husky, the economic uncertainty will require the company to be prudent in weathering the financial crisis. The company is expecting to be in a minimum debt position. The 2009 capital budget has been established with a view to maintaining the strength of Husky’s balance sheet.”
