Cenovus CEO Alex Pourbaix (Canadian Press File Photo)

By Canadian Press

Cenovus Rollbacks

Cenovus announces 32 per cent cut to spending plan amid price drop

Mar 10, 2020 | 8:13 AM

CALGARY – Cenovus Energy Inc. says it is cutting its capital spending plan for this year by 32 per cent due to the recent plunge in world oil prices.

The company says it now plans between $900 million and $1 billion in total capital spending this year, down from earlier plans for between $1.3 billion and $1.5 billion.

The price of oil collapsed on Monday over a dispute between Russia and Saudi Arabia regarding plans to cut oil production.

The fight between the major oil producers compounded worries about lower demand due to slower economic growth as a result of the novel coronavirus outbreak.

Cenovus says it is also temporarily suspending its crude-by-rail program and deferring final investment decisions on major growth projects.

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It says total production this year is expected to come in between 432,000 and 486,000 barrels of oil equivalent per day, down from its earlier guidance for between 472,000 and 496,000 barrels of oil equivalent per day.