Imperial Oil said it would write between $ 900 million and $ 1.2 billion in the quarter.
The Calgary-based company’s assets are undeveloped and underdeveloped, so Imperial does not expect future cash outlays related to the weakness charge.
Weakness The company’s exceptional asset is the high-value, liquid-containing portion of the portfolio that does not yet have plans to grow.
“This decision is in line with Imperial’s strategy of focusing its upstream resources and efforts only on its key oilsand assets and the most attractive parts of its exceptional portfolio. Therefore, this decision will not affect production expectations previously provided,” the company said in a statement on Monday.
Global demand for oil declined earlier this year as the pandemic hit. Prices have not really bounced yet.
The Organization of the Petroleum Exporting Countries (OPEC) expects global demand to return slower next year than previously thought. Vaccine access Brings less uncertainty and economic growth. That and other perspectives Some companies have withdrawn development plans.
ExxonMobil, which holds a majority stake in Imperial, also announced on Monday a weakness – the largest so far – that would write off the value of natural gas properties from $ 17 billion to $ 20 billion, reducing its project cost to a 15-year low.
Last week, Imperial announced it would lay off 200 of its 6,000 employees as part of a cost-cutting program. It has reduced the number of contractors it employs to 450 since the beginning of the year.
CBC News reached out to the Alberta Energy Minister for comment.