Page 7 - NorthAmOil Week 02 2023

NorthAmOil PERFORMANCE NorthAmOil

refinery are each expected to return to full rates 510,000-550,000 bpd in the US.
by about mid-January. Crude throughput will increase by 28% from
The Wood River refinery, which is currently 2022 with the restart of the Superior refinery
operating at around 65% capacity, is expected to and the expected acquisition of the additional
continue to ramp up rates throughout the first 50% interest in the Toledo refinery. This will
quarter. improve Cenovus’ heavy oil value chain inte-
As a result of these impacts, first-quarter 2023 gration, further mitigating the impact of West
refinery throughput will be lower than previ- Texas Intermediate (WTI) to Western Canadian
ously anticipated, said Cenovus. Select (WCS) light-heavy differentials, said the
If necessary, the company will provide an company.
update to its 2023 corporate guidance in Febru- In 2023, capital investment in Ceno-
ary, when its 2022 fourth-quarter and full-year vus’ downstream business is projected to be
results are announced. CAD800-900mn ($597-672mn). Sustaining
In December, Cenovus announced that capital will focus primarily on safety and relia-
throughput in 2023 was expected to be bility initiatives in Canadian manufacturing and
between 610,000 and 660,000 bpd, includ- reflects the restart of the Superior and Toledo
ing 100,000-110,000 bpd in Canada and refineries in early 2023.™

Devon faces fourth-quarter production

hit on winter weather

US SHALE producer Devon Energy has reduced
its expected fourth-quarter 2022 production
guidance by 2%, or 15,000 barrels of oil equiv-
alent per day (boepd). Devon cited the impact
of “severe winter weather” across its operations.
The curtailments are expected to limit Dev-
on’s production to an average of 636,000 boepd
in the fourth quarter, including 316,000 barrels
per day (bpd) of oil.
The most significant production impact was
associated with the company’s Williston Basin
operations in North Dakota. Severe weather
conditions during December resulted in well
shut-ins, facility downtime and delays in com-
pletion activity, said Devon.
The Oklahoma City-based company said it
had successfully restored the affected produc-
tion across all its operating areas and expected
the weather-related downtime to be confined to
the fourth quarter of 2022.
Devon’s Williston Basin position is located
entirely on the Fort Berthold Indian Reser-
vation consisting of around 123,000 net acres $865mn in cash. RimRock is a portfolio com-
(498 square km ). The company’s operations are pany of funds managed by Warburg Pincus.
focused on the oil-rich Bakken and Three Forks In the Williston Basin in the fourth quarter,
formations. Devon planned to operate two rigs and bring
In the third quarter of 2022, Devon’s pro- online more than 10 gross wells.
duction in the Williston Basin averaged 55,000 Devon had revised its production fore-
boepd, with oil comprising 65%, representing a cast higher in the fourth quarter to a range of
22% increase compared to the previous quarter. 640,000-660,000 boepd, a 6% increase on the
This volume growth was driven by the clos- same quarter a year prior. This fourth-quarter
ing of the RimRock Oil & Gas acquisition in July volume growth was expected to be driven by
2022, and the start-up of 10 gross wells from the 35,000 boepd of incremental production from
company’s legacy position in the basin. the company’s Eagle Ford acquisition.
RimRock sold its leasehold interest and Devon will report its fourth-quarter results
related assets in the Williston Basin to Devon for on February 14.™

Week 02 12•January•2023 www. NEWSBASE .com P7