1980s From Public to Private

Throughout the 1980s Husky restructured, transitioned and made deals. The Company expanded its land base and added new conventional oil reserves through the acquisition of Uno-Tex. It took on ambitious exploration projects in the Beaufort Sea and offshore Canada’s East Coast.

Although the Company was expanding elsewhere, a focus on heavy oil was maintained. The Bi-Provincial Upgrader Project was announced by Husky and its partners, the Governments of Canada, Saskatchewan and Alberta. As well, the Lloydminster Refinery was expanded. The state-of-the-art facility came on stream in 1983, with twice the capacity of the previous plant and boasting the most advanced process control and energy conservation features of any comparable facility in Canada.

Another major change took place when the Company sold its American upstream and downstream assets. For the first time in its 48-year history, Husky had no U.S. involvement.

Times proved trying when oil dropped below $10 a barrel in 1986. Husky’s asset value and income plunged. Capital spending was drastically reduced and in Calgary, 300 people were laid off. Exploration off the East Coast was halted and Husky eventually sold its interests in the Beaufort Sea. Its focus, once again, became heavy oil and conventional oil and gas.

The Company wasn’t generating the large amounts of capital required to fund its projects, many of which had medium to long-term time frames and would not yield returns for years.

It was determined Husky would fare better as a private company. The question was, who had the capital and who recognized the Company’s long-term investment value, despite the present issues? This was accomplished in 1987 through an amalgamation involving the Hutchison Whampoa group chaired by Li Ka-shing.

The amalgamation, announced in December 1986, secured funding for Husky as a private, Canadian, integrated petroleum company.

In 1988, Husky acquired Canterra Energy Ltd., combining Husky’s strength in heavy oil, frontier exploration and downstream activities with Canterra’s expertise in natural gas and sulphur marketing and conventional exploration and production, including the Ram River gas plant, Rainbow Lake production operations and the Sunrise oil sands lease.

  • Lloydminster Refinery
  • East Coast Canada
  • Drilling Rig Hands
  • Western Canada Pumpjack
1981
  • Began exploration in Beaufort Sea and offshore Canada’s East Coast, where it built and commissioned two drilling rigs and a fleet of six supply vessels.
1982
  • Started construction on a new branch of the pipelines from Lloydminster to Cold Lake. Two years later a new pipeline completed the looping between Lloydminster and Hardisty, making it possible to ship more Lloydminster Blend to eastern markets.
1983
  • Opened a new 25,000 barrels per day refinery in Lloydminster. The opening of the refinery coincided with a major road and highway rebuilding program in Western Canada and the United States.
  • Moved to Western Canadian Place headquarters in Calgary, Alberta.
1984
  • Arthur Price was appointed President.
  • Sold its U.S. assets.
  • Discovered White Rose field, offshore Newfoundland.
1986
  • Curtailed operations and sold assets when oil dropped below $10 a barrel.
  • Pursued private ownership with Hong Kong investor Li Ka-shing. This amalgamation secured long-term funding for Husky as a private, Canadian, integrated petroleum company.
1987
  • Arthur Price was appointed President
    and Chief Executive Officer.
1989
  • Began construction on the Bi-Provincial Upgrader, creating 3,800 jobs at the peak of the construction period.