IPC Alberta announces plan to curtail production, spending in the West
By COLLIN GALLANT on May 7, 2020.
cgallant@medicinehatnews.com@CollinGallant
IPC Alberta could curtail as much as 16,000 barrels of oil production per day from its operations in Western Canada, including major fields near Suffield, to shield itself from rock-bottom prices for Western Canada Select oil.
The Canadian-based, global petroleum producer announced the figure on Wednesday following its investor day and AGM. Ahead of its first-quarter financial report, it said that it will only meet minimum delivery commitments as long as global and regional oil prices remain so low.
It will also cut US$35 million of planned capital spending in southern Alberta, and a lesser amount at recently acquired Onion Lake Thermal project as part of an US$85 million reduction in global spending.
New figures assume zero revenue from operations in Canada where regional oil prices have fallen into the single-digit dollars per barrel.
That could use up about half the company’s existing credit facilities, but it is pursuing Canadian federal loans as well as government assistance in France, where it also operates along with Malaysia.
The company expects no change in gas production at facilities in and around CFB Suffield, which the company acquired from Census in late 2017.
