Husky Energy

Husky Energy Inc.was a Canadian company engaged inhydrocarbon exploration,headquartered inCalgary,Alberta,Canada. It operated in Western and Atlantic Canada, the United States and the Asia Pacific region, with upstream and downstream business segments. In the 2020Forbes Global 2000,Husky Energy was ranked as the 1443rd-largest public company in the world.

Toledo Cenovus Refinery

Formerly	BP/Husky Oil Limited
Company type	Public company(1953–87, 2000–2021)
Traded as	TSX:HSE
Industry	Petroleum industry
Founded	1938(1938)as Husky Refining Company
Fate	Acquired byCenovus Energy
Headquarters	Calgary,Alberta,Canada
Key people	Li Ka-shing (Chairman) Rob Peabody (President & CEO)
Products	Oil,natural gas,asphalt,associated products
Production output	290 thousandbarrels of oil equivalent(1,800,000 GJ) per day (2019)
Revenue	C$19.983 billion, net of royalties (2019)
Net income	-C$1.370 billion (2019)
Total assets	C$33.122 billion (2019)
Owner	Cenovus Energy(72.8%)CK Hutchison Holdings(27.2%)
Number of employees	4,800
Parent	Cenovus Energy
Website	www.huskyenergy
Footnotes / references

Husky Oil headquarters in Calgary

In January 2021, Husky was acquired byCenovus Energy.Its retail operations were sold toFederated Co-operativesandParkland Corporationlater that year.

History

Husky Energy was founded in 1938 inCody, Wyomingas the Husky Refining Company, with the acquisition byGlenn Nielsenof assets of the 4-year-old Park Refining Company from founderValentine Monroe Kirk.The first refinery was in Cody, with a second constructed later inRiverton, Wyoming.

In 1946, the Company relocated to Canada, with the Riverton refinery moved toLloydminster,Albertato take advantage of the expanding asphalt and heavy oil opportunities in the area. A wholly-owned subsidiary, Husky Oil and Refining Ltd., was created and headquartered in Calgary, Alberta, Canada. The Cody refinery continued operations well into the 1970s, producing primarily asphalt. The refinery was razed in the late 1990s.

In 1978–1979, amid a bidding war betweenPetro-CanadaandOccidental Petroleum,controlling ownership of Husky was acquired byAlberta Gas Trunk Lines(which in 1980 became NOVA Corporation).

In 1986, Hong Kong-basedLi Ka-shingacquired 43% of Husky, and in 1991 he purchased NOVA's remaining interests, expanding his stake to 95%.

In 1998, Husky purchasedMohawk Oil,the largest independent chain of consumer filling stations in Western Canada.

In 2000, the company acquired Renaissance Energy, controlled byLi Ka-shing.

In 2003, it acquired the Canadian unit of the American-basedMarathon Oil Corporation.

In November 2017, Husky acquired the a refinery inSuperior, Wisconsinfrom Calumet Specialty Products Partners LP for $492 million.

In 2019, the company dropped a bid to acquireMEG Energyafter failing to get shareholder support.

In 2020,Cenovus Energyoffered to acquire Husky for $3.8 billion;Li would own 27.2% of the merged company.The acquisition was completed in January 2021.

Incidents

On April 26, 2018, Husky'sSuperior, Wisconsinrefinery experienced aseries of explosions and fires,resulting in 11 injuries, one of which was critical. A mandatory evacuation was issued by the Mayor of Superior, Jim Paine, after the fire spread and caused multiple additional explosions, withDouglas County(of which Superior is the county seat) declaring a state of emergency. The black smoke resulting from the explosions and fire traveled as far south asSolon Springs,22 miles south of the refinery.

Operations

Its offshore business includes the Asia Pacific and Atlantic regions. In Asia Pacific, Husky's Liwan Gas Project in theSouth China Seaachieved first production in 2014.The liquids-rich BD field offshore ofIndonesiacame online in 2017, and the company is advancing additional shallow water fields.

Husky also has a portfolio of oil sands leases, encompassing some 2,500 square kilometres in theFort McMurrayregion of northern Alberta. Its Sunrise Energy Project achieved first production in early 2015.

In theAtlanticregion, off Canada's East Coast, the company holds interests in 20 exploration licenses and producing properties at Terra Nova and White Rose. In the United States, the company owns a refinery inLima, Ohio,a refinery in Superior, Wisconsin and holds a 50% ownership interest withBPin the BP-Husky Toledo Refinery inOregon, Ohio.

Assets and holdings

A Husky gas station in Markham, Ontario

At 2015 year-end, Husky Energy had total proved reserves before royalties of 1.3 billion boe and probable reserves of 1.6 billion boe. In 2015 its reserves replacement ratio was 166% (136% including economic factors), reflecting new additions from heavy oil thermal projects, the Sunrise Energy Project, the Liwan Gas Project and the company's natural gas fields offshore Indonesia.It owns approximately 490 retail stations in Canada.

Husky is the operator of theWhite Rosefield and a partner in theTerra Novaproject in theJeanne d'Arc BasinoffshoreNewfoundland.The White Rose field (located offshore Newfoundland in the Jeanne d'Arc Basin) includes two production wells at South White Rose that came online in 2015. Exploration work is underway at the Bay du Nord discovery area in the Flemish Pass, with partner Statoil.

Husky also owns a 40% interest in the Wenchang project offshore China, located near the mouth of thePearl River.The remaining 60% of the project is owned by theChina National Offshore Oil Corporation(CNOOC). Husky is advancing the liquids-rich BD field offshore Indonesia, along with three additional shallow water fields.

Husky owns and operates the Lloydminster Heavy Oil Upgrader inLloydminster,Saskatchewan, the Asphalt Refinery in Lloydminster, Alberta, and the Superior Refinery in Superior, Wisconsin. Husky also operates theHusky Lloydminster Ethanol Plantand theMinnedosa Ethanol Plant.

Husky Energy's operations are divided into two business segments: Upstream and Downstream.

The Upstream division focuses on oil and gas exploration and extraction. In addition to its existing producing assets and opportunities in Heavy Oil and Western Canada, the company has identified three pillars for growth: the Asia Pacific Region, the Oil Sands and the Atlantic Region.

Its Heavy Oil business include seven thermal developments in Saskatchewan.

The company's Western Canada portfolio includes a focus on resource plays.

In the Asia Pacific Region, Husky's Liwan Gas Project in the South China Sea began production in 2014.Husky is advancing the liquids-rich BD field offshore Indonesia, along with three additional shallow water fields.

Husky has a portfolio of oil sands leases, encompassing 2,500 square kilometres in theFort McMurrayregion of northern Alberta. Its Sunrise Energy Project achieved first production in early 2015 and supports online applicants.

Husky is usingsteam-assisted gravity drainagetechnology at Sunrise, where bitumen is heated with steam to reduce its viscosity. When the liquid becomes more fluid, it is pumped to the surface and back to the central facility.

Husky has managed the terminal operations forWestern Canada Select(WCS)—one of North America's largest heavy crude oil streams— since it came on stream in 2004.

Downstream

The Lloydminster Upgrader, inLloydminster,Alberta,converts heavy oil to a high-quality, low sulphur synthetic oil.

Husky'sasphalt refinery,inLloydminster, Alberta,produces more than 30 different types and grades of road asphalt.

Husky's Ethanol Plant inMinnedosa, Manitobahas been producing ethanol to be blended into gasoline since 1981. In 2007 it was expanded and produces about 130 million litres of ethanol per year.

TheHusky Lloydminster Ethanol Plantcame online in 2006 and produces 130 million litres ofethanolper year. In Canada ethanol is blended into gasoline. Feedstock for the plant is mainly non-food feed-grade wheat purchased locally. The plant can also produceCorn ethanol.

Like other Midwest refiners, Husky was revamping itsLima, Ohiorefinery to processWestern Canadian Select,(WCS) a heavier but less expensive crude oil. Since 2012 "Lima has run over 60,000 bpd of Canadian crude, but only about 3,000 bpd of that would be particularly heavy with an API gravity below 30." In early January 2015, an explosion damaged the refinery's 26,000-bpd isocracker unit. Later that year Husky announced that, given the low price of oil, it would postpone its US$300 million crude oil flexibility project. The project will process up to 40,000 bpd of WCS.

Husky and BP arranged a joint venture in 2008 in order to develop and process Alberta bitumen through which Husky acquired a 50% sharein the 155,000-bpd BP-Husky Toledo Refinery inOregon, Ohioand BP acquired a 50% share of the Husky-operated Sunrise field in Alberta.This refinery has been upgraded with a coker and is processing bitumen from Sunrise.

Retail operations

In December 2009, Husky acquired 98SunocoandPetro-Canadastations in Ontario as part ofSuncor Energy's acquisition of Petro-Canada.

In October 2015, Husky announced an agreement withImperial Oilto combine its commercial cardlock network with Esso's network. As part of the agreement, all Husky cardlock locations were rebranded as Esso cardlocks in 2017, and selected retail locations—including Husky's travel centres—were converted to the Esso brand.

In January 2019, Husky stated that it was exploring the sale of its retail network and Prince George refinery.

In December 2021, Cenovus announced its intent to sell 337 gas stations toParkland FuelandFederated Co-operatives,retaining the travel centres and commercial fuels business that operate under the Esso brand.Federated Co-operatives will transfer its locations to local members under the Co-op brand, or independent owners under the Tempo brand.

Leadership

President

Glenn E. Nielson,1938–1967
Gene E. Roark, 1967–1972
James E. Nielson, 1972–1979
Arthur R. Price, 1984–1993
James D. McFarland, 1995–1998
John Lau,1998–2010
Asim Ghosh,2010–2016
Robert J. Peabody,2016–2020

Chairman of the Board

Glenn E. Nielson,1967–1979
S. Robert Blair,1979–1992
Simon Murray(Co-), 1987–1995
George C. Magnus (Co-), 1992–1995
Victor Li(Co-), 1995–2020
Canning Fok(Co-), 1995–2020

External links

• Official website