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Cenovus to axe more jobs.

Canadian oil sands company Cenovus Energy said it would cut an additional 15 per cent of its workforce and lower operating expenses as new chief executive, Alex Pourbaix, seeks to aggressively reduce costs and lower debt.

The move was expected as Pourbaix last month vowed to focus on cost cuts as the company remains under investor pressure to justify its C$17 billion ($13.3 billion) deal to buy ConocoPhillips COP.N assets.

Calgary-based Cenovus, which hired Pourbaix last month, had said in June that it expected to eliminate some jobs, but did not specify the scale.

The company also said it expected to reduce per-barrel operating costs by 8 per cent, compared with estimated 2017 expenses, and lower capital costs needed to sustain each oil barrel by 12 per cent.

"Our priorities for 2018 are to reduce costs and deleverage our balance sheet," Pourbaix said in a statement.

Cenovus also cut spending in the Deep Basin gas assets it bought from ConocoPhillips, which had been unpopular in part because they departed from the Canadian company's oil sands focus.

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Publication:Oil & Gas News
Date:Dec 25, 2017
Words:200
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