Dec 17 Canadian oil producer Athabasca Oil Corp
said it planned to spend 42 percent less in 2014 to
develop its assets, as it awaits government approval for its
The company, an oil sands and unconventional oil developer,
holds 40 percent of the Dover project in Alberta, while
PetroChina Co Ltd holds the rest.
Athabasca has the option of exercising a $1.32 billion put
option with PetroChina once the Dover project is approved.
Athabasca had warned in October that it could cut its
budget, sell light oil assets or incur more debt if approval on
the Dover project was denied. ()
The company on Tuesday said it will spend C$460 million
($435 million) in 2014 - C$348 million for developing thermal
oil assets and C$106 million for light oil assets. The remaining
money will be used for corporate expenses.
Athabasca had said last year it would spend C$798 million to
develop its oil assets in Alberta in 2013, and finance capital
costs through cash-on-hand, debt and cash flow from production.