The Calgary-based company said the assets are unproductive and undeveloped, so Imperial does not anticipate any future cash expenses related to the impairment charge. Depreciation does not include the high-value, liquid-rich portion of the company’s unconventional asset portfolio that it still planned to develop.
“This move is in line with Imperial’s strategy of focusing its resources and upstream efforts on its core oil sands assets as well as only the most attractive parts of its unconventional portfolio. As such, the decision will not affect previously provided production estimates. “Said in a statement on Monday.
Global demand for oil fell earlier this year when the pandemic hit. Prices haven’t really rebounded yet.
The Organization of the Petroleum Exporting Countries (OPEC) has predicted that global demand will return more slowly next year than previously thought, but that access to a vaccine could lead to less uncertainty and economic growth. . This and other perspectives have seen some companies cut back on their development plans.
Exxon Mobil, which owns a majority stake in Imperial, also announced a depreciation Monday – the largest ever – announcing that it would reduce the value of natural gas properties by $ 17 billion to US $ 20 billion , as well as next year project spending the lowest level in 15 years.
Last week, Imperial announced that it would lay off about 200 of its 6,000 employees as part of a cost reduction initiative. It has also reduced the number of contractors it employs by around 450 since the start of the year.
CBC News has reached out to the Alberta Energy Minister for comment.