Husky Energy

Husky Energy Inc.

Type	Public company
Traded as	TSX: HSE TSX: HSE.PR.A OTCQB: HUSKF S&P/TSX 60 component
Industry	Oil and gas
Founded	1938 as Husky Refining Company
Headquarters	Calgary, Alberta, Canada
Key people	Asim Ghosh, President & CEO, Li Ka-Shing
Products	Oil, natural gas, asphalt, associated products ,
Revenue	$24.1 billion, net of royalties (2014)
Number of employees	5,700
Website	www.huskyenergy.com

Husky Oil headquarters in Calgary

Husky Energy Inc. is one of Canada’s largest integrated energy companies, headquartered in Calgary, Alberta. Its common shares are publicly traded on the Toronto Stock Exchange under the symbol HSE. The Company operates in Western and Atlantic Canada, the United States and the Asia Pacific Region, with Upstream and Downstream business segments. Husky Energy is controlled by Hong Kong billionaire Li Ka-Shing who owns a majority share of approximately 70% according to Bloomberg and Financial Post data.

Husky's foundation is in Heavy Oil and Western Canada, where it has conventional oil and natural gas assets, significant heavy oil production and downstream operations, including refineries, upgrading facilities and pipelines. The Company is pursuing three growth pillars in the Asia Pacific Region, the Oil Sands and the Atlantic Region.

In the Asia Pacific Region, Husky’s Liwan Gas Project in the South China Sea achieved first production in 2014. The company also holds exploration rights offshore Indonesia.

Husky also has a portfolio of oil sands leases, encompassing some 2,500 square kilometres in the Fort McMurray region of northern Alberta. Its Sunrise Energy Project commenced steaming operations in late 2014.

In the Atlantic Region, 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 in Lima, Ohio and holds a 50 percent ownership interest with BP in the BP-Husky Toledo Refinery in Oregon, Ohio. The company employs approximately 5,700 people (as of 2014), has approximately $38.8 billion in assets and produced an average of 340,000 barrels of oil equivalent per day in 2014, making it one of Canada's largest energy companies.

Assets and holdings

Husky Gas Station, Downtown Edmonton, Alberta.

At 2014 year-end, Husky Energy had total proved reserves before royalties of 1.3 billion boe, probable reserves of 1.9 billion boe and best estimate contingent resources of 14.8 billion boe. In 2014 its reserves replacement ratio over the past four years was 157 percent (143 percent including economic factors). It owns approximately 490 retail stations in Canada.

Husky holds property and/or mineral rights to some 5.2 million developed acres (21,200 km²) in Western Canada.

The corporation also owns some 618,000 acres (2,500 km²) in the Athabasca, Peace River, and Cold Lake regions of Western Canada.

Husky holds offshore properties. It is the operator of the White Rose project and partner in the Terra Nova project in the Jeanne d'Arc Basin off Newfoundland. Two new oil fields in at Bay du Nord and Harpoon in the Flemish Pass were discovered in 2013 with partner Statoil, near the previously announced Mizzen field.

The company also owns a 40% interest in the Wenchang project offshore China, located near the mouth of the Pearl River. The remaining 60 percent of the project is owned by the Chinese National Offshore Oil Corporation (CNOOC). Husky is advancing its two planned shallow water developments offshore Indonesia in the Madura Strait. It is evaluating a fourth natural gas discovery made in the vicinity of its MDA/MBH fields.

In terms of refined products facilities, Husky owns and operates the Lloydminster Heavy Oil Upgrader in Lloydminster, Saskatchewan, the Asphalt Refinery in Lloydminster, Alberta, the Prince George Refinery in Prince George, British Columbia, the Lima Refinery in Lima, Ohio and is a 50 percent owner with BP of a refinery in Toledo, Ohio. Husky also operates the Husky Lloydminster Ethanol Plant and the Minnedosa Ethanol Plant.

A substantial portion of Husky's property and operations base has come from its acquisition of Renaissance Energy. In 2003, it also purchased the Canadian unit of the American-based Marathon Oil Corporation.

Corporate history

Now a publicly traded Canadian company with global interests, Husky Energy was originally founded in 1938 in Cody, Wyoming, in the United States, as the Husky Refining Company. Its primary founder was Glenn Nielsen. The first refinery was built in Cody, with a second constructed later in Riverton, Wyoming. In 1946, the Riverton refinery was moved to Lloydminster, Alberta, Canada, to 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. In the late 1980s and early 1990s, there were periodic rumors floating around Cody that the refinery would be reopened by a variety of different companies. One of the more persistent rumors was the impending purchase and reactivation of the refinery by Flying J. This never happened, however, and the entire refinery was finally razed in the late 1990s.

In 1998 Husky purchased Mohawk Oil, the largest independent chain of filling stations in Western Canada. Mohawk continues as a banner of filling stations within the Husky company.

Operations

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 future growth: the Asia Pacific Region, the Oil Sands and the Atlantic Region.

In the Asia Pacific Region, Husky’s Liwan Gas Project in the South China Sea began production in 2014. Wenchang, located off China's Pearl River and run jointly with CNOOC. Husky is advancing its two planned shallow water developments offshore Indonesia in the Madura Strait. It is evaluating a fourth natural gas discovery made in the vicinity of its MDA/MBH fields.

Husky has a portfolio of oil sands leases, encompassing some 2,500 square kilometres in the Fort McMurray region of northern Alberta. Its Sunrise Energy Project commenced steam operations in late 2014.

Because some 80% of Alberta's oil sands are too far below the surface for standard mining and drilling procedures to access, Husky is using Steam Assisted Gravity Drainage technology 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. After the bitumen is recovered, it will be subjected to a process by which useful oil will be extracted.

The company's Tucker Oil Sands Project began producing in 2006.

Costing $2.35 billion Canadian and starting operation in November 2005, the White Rose project (located off Newfoundland in the Jeanne d'Arc Basin) is anticipated to recover over 600 million barrels (95,000,000 m³) of oil. Two new oil fields in at Bay du Nord and Harpoon in the Flemish Pass were discovered in 2013 with partner Statoil, near the previously announced Mizzen field.

Husky Energy incorporates the use of ethanol in some of its gasoline fuel products.

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

Downstream

Husky Lloydminster Upgrader

Husky Lloydminster Upgrader's is Lloydminster, Saskatchewan.

Husky Lloydminster Refinery

Husky's asphalt refinery is in Lloydminster, Alberta.

Minnedosa Ethanol Plant

Since 1981, Husky's Minnedosa Ethanol Plant in Minnedosa, Manitoba "has been producing ethanol to be blended into gasoline. In 2007 it was expanded into one of the largest ethanol facilities in Canada.

Ethanol Plant, in Lloydminster

The Husky Lloydminster Ethanol Plant, ia located near the Husky Lloydminster Refinery and Meridian Power Station. The CDN$90–95 million plant, which came on line in 2006 produces 130 million litres of ethanol per 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 produce Corn ethanol. "The feed-stock is milled, cooked, fermented, distilled and dehydrated resulting in ethanol fuel and the remaining waste material is processed into a high protein feed supplement."

Refinery in Prince George, B.C.

Husky owns and operates the Prince George Refinery in Prince George, British Columbia.The refinery feed stock is delivered by pipeline from wells in north-eastern British Columbia. The refinery provides unleaded gasoline, seasonal diesel fuels, mixed propane and butane, and heavy fuel oil. The refinery is fed from crude oil from Husky's operations in Rainbow Lake, Alberta via the Pembina Pipeline that runs from Taylor, British Columbia through Prince George ending in Kamloops. By 2011 the refinery's capacity was 12,000 bpd. "Husky Oil operates a large natural gas plant near Rainbow Lake and co-owns/operates a co-generation facility with Atco Power. The estimated regional production volumes for 2002 included 11.8 million barrels of oil. This accounted for 5.1 percent of oil production in Alberta."

Refinery Lima, Ohio

Like a number of other Midwest refiners, Husky was revamping its Lima, Ohio refinery with a coker capable of processing Western Canadian Select, (WCS) a heavier but very inexpensive, 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 destroyed the refinery's 26,000-bpd isocracker unit. Later in January Husky announced that, given the low price of oil, it would postpone construction of its USD$300 million 155,000 bpd refinery project until 2017, with a completion date in 2019. The original project would have processed up to 40,000 bpd of WCS. Replacing the isocracker unit will take months. While work is taking place on the coker and processing units, the refinery can still refine light crude oil.

BP-Husky Toledo Refinery

Husky and BP arranged a Joint Venture (JV) in 2008 in order to develop and process Alberta Oil Sands through which Husky acquired 50% share in the 155,000-bpd BP-Husky Toledo Refinery in Oregon, Ohio and BP acquired 50% share of the Husky-operated Sunrise field in Alberta. This refinery is also upgrading with a coker so that it can process 170,000 bpd of the heavy crude oil, WCS from Sunrise.

Retail operations

In December 2009, Husky Energy announced that it has entered into an agreement with Suncor Energy Inc. and Suncor Energy Products Inc. to purchase 98 retail outlets in the Ontario market. Husky acquired 68 stations that were branded Sunoco and 30 stations that were branded Petro-Canada.

Corporate governance

Current members of the board of directors of Husky Energy are: Stephen Bradley, Canning Fok, Asim Ghosh, Martin Glynn, Poh Chan Koh, Eva Kwok, Stanley Kwok, Victor Li, Frederick Ma, George Magnus, Neil McGee, Colin Russel, Wayne Shaw, William Shurniak, and Frank Sixt.

Tommy Douglas served as a director of Husky Oil after his retirement from politics.

The current Chief Executive Officer and President of Husky is Asim Ghosh. Ghosh assumed the role of CEO and President in June 2010, taking over the position from John C.S. Lau, who had served as the CEO since 1993.

External links

• Husky Energy
• Husky Energy Careers