UPDATE 3-Canada's Husky keeps 2016 budget tight, plans asset sales

Tue Dec 8, 2015 1:16pm EST
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* Sees 2016 capex estimate C$2.9 bln-C$3.1 bln

* Expects 2016 average production 330,000-360,000 boepd

* Explores sale of Lloydminster region's midstream assets (Adds comment, details of planned asset sales, share price)

By Nia Williams

CALGARY, Alberta, Dec 8 (Reuters) - Canadian oil producer Husky Energy Inc said on Tuesday it will keep its 2016 budget nearly unchanged from 2015, joining peers who are focusing on keeping costs under control to cope with a prolonged slump in oil prices, which touched multi-year lows this week.

The company said it will spend C$2.9 billion ($2.14 billion) to C$3.1 billion in 2016, compared with an estimated C$3 billion this year.

Husky is looking at selling some of its midstream assets in western Canada's Lloydminster region, which straddles the Alberta-Saskatchewan border, to strengthen its balance sheet and meet debt obligations.

Chief Financial Officer Jonathan McKenzie said Husky owns about 1,900 kilometers (1,180 miles) of pipe and associated storage in the region and is still evaluating how much of the assets would be sold.

Husky plans to retain operatorship of the midstream facilities as they link the company's thermal oil operations to its heavy oil upgrader and refinery in Lloydminster, neither of which will be put up for sale.   Continued...