Husky says it will continue to operate as a separate and independent company if the merger with Cenovus ends. Once that process is complete, additional work will be undertaken to review all assets and determine its future business case, according to Husky representatives in Calgary.
Husky tells VOCM News that West White Rose continues to be the key to extending the life of the White Rose oilfield into the offshore, however, all options are on the table and “accelerating the abandonment. remains a possibility ”.
Cenovus Energy shares are down following the merger in the petroleum industry while Husky shares are up. Husky and Cenovus, both based in Calgary, are joining forces in these tough economic times.
The White Rose expansion project, with most of its land component in Argentia, has been put on hold after the federal and provincial governments turned down an investment offer.
Larry Short, portfolio manager at Short Financial in St. John’s, was not surprised by the merger as it mirrors what is happening in North America. There was no mention of Husky’s east coast operations in the press release announcing the merger, but Short sees nothing of significance.
Short says Husky is in a healthier position today than it was on Friday before the merger.