Reuters: Cenovus Energy seeks partner for C$1.3B Narrows Lake project

|About: Cenovus Energy, Inc. (CVE)|By:, SA News Editor

Cenovus Energy (CVE -0.6%) is seeking a partner to fund C$1.3B (US$993M) in costs to build the supporting infrastructure at its Narrows Lake oil sands project in Alberta, Reuters reports.

CVE has been seeking to raise billions to reduce its debt burden after it spent C$17B last year on acquiring oil sands and natural gas assets from ConocoPhillips; to avoid placing further stress on its balance sheet, CVE reportedly hopes to secure the funds to build infrastructure supporting the first phase of Narrows Lake from an outside partner, which would finance construction in exchange for a long-term agreement with the company to utilize the assets.

CVE already has spent ~C$700M to advance the project, and expects it will cost another C$1.6B-C$1.9B to get the site ready for production, according to the report.

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