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Cenovus Energy Inc.

06/09/2021 | Press release | Distributed by Public on 06/09/2021 12:08

Canada’s largest oil sands producers announce unprecedented alliance to achieve net zero greenhouse gas emissions (Form 6-K)

Canada'slargestoilsandsproducersannounceunprecedented

alliancetoachievenetzerogreenhousegasemissions

CALGARY,Alberta,June9,2021-CanadianNaturalResources,CenovusEnergy,Imperial, MEG Energy and Suncor Energy formally announced today the Oil Sands Pathways toNet Zero initiative. These companies operate approximately 90% of Canada's oil sandsproduction.Thegoalofthisuniquealliance,workingcollectivelywiththefederaland Albertagovernments,istoachievenetzerogreenhousegas(GHG)emissionsfromoilsands operations by 2050 to help Canada meet its climate goals, including its Paris Agreementcommitmentsand2050netzeroaspirations.

This collaborative effort follows welcome announcements from the Government ofCanada and the Government of Alberta of important support programs for emissions-reductionprojectsandinfrastructure.Collaborationbetweenindustryandgovernment willbecriticaltoprogressingtheOilSandsPathwaystoNetZerovisionandachievingCanada'sclimategoals.

ThePathwaysvisionisanchoredbyamajorCarbonCapture,UtilizationandStorage (CCUS) trunkline connected to a carbon sequestration hub to enable multi-sector'tie-in'projectsforexpandedemissionsreductions.TheproposedCCUSsystemis similartothemulti-billiondollarLongship/NorthernLightsprojectinNorwayaswellas other CCUS projects in the Netherlands, U.K. and U.S., all of which involve significant collaborationbetweenindustryandgovernment.

ThePathwaysinitiativeisambitiousandwillrequiresignificantinvestmentonthepart of both industry and government to advance the research and development of newandemergingtechnologies.

The companies involved look forward to continuing to work with the federal andAlbertagovernments,andtoengagingwithlocalIndigenouscommunitiesinnorthern Alberta to make this ambitious, major emissions-reduction vision a reality so thosecommunitiescancontinuetobenefitfromCanadianresourcedevelopment.

As proud Canadian companies, members of the Pathways alliance share the aspiration ofCanadianstofindrealisticandworkablesolutionstothechallengeofclimatechange.TheoilsandsindustryisasignificantsourceofGHGemissionsandtheinitiativewilldevelopan actionable approach to address those emissions, while also preserving the more than $3trillion in estimated oil sands contribution to Canada's gross domestic product (GDP) over thenext30years.Theinitiativewillcreatejobs,acceleratedevelopmentofthecleantechsector,providebenefitsformultipleothersectorsandhelpmaintainCanadians'quality oflife.ThemembersofthePathwaysalliancewilldotheirpartbymakingtheeconomicinvestmentsneededtoensurethatourcompaniessuccessfullymakethetransitiontoa netzeroworld,andhence,deliverlong-termvaluetoshareholders.

Becausethereisnosinglesolutiontoachievingnetzeroemissions,theinitiativeincorporatesanumberofparallelpathwaystoaddressGHGemissions,including:

AcoreAlbertainfrastructurecorridorlinkingoilsandsfacilitiesintheFortMcMurray and Cold Lake regions to a carbon sequestration hub near Cold Lake via a CO2trunkline. The trunkline would also be available to other industries in the regioninterested in capturing and sequestering CO2. There is also potential to link theinfrastructurecorridortotheEdmontonregion.

Deploying existing and emerging GHG reduction technologies at oil sands operationsalongthecorridor,includingCCUStechnology,cleanhydrogen,processimprovements,energyefficiency,fuelswitchingandelectrification.

Evaluating,pilotingandacceleratingapplicationofpotentialemergingemissions-reducing technologies including direct air capture, next-generation recoverytechnologiesandsmallmodularnuclearreactors.

In addition to collaborating and investing together with industry, it is essential forgovernments to develop enabling policies, fiscal programs and regulations to providecertainty for this type of long-term, large-scale investment. This includes dependableaccesstocarbonsequestrationrights,emissionsreductioncreditsandongoinginvestment tax credits. We look forward to continued collaboration with both the federal and Albertagovernmentstocreatetheregulatoryandpolicycertaintyandfiscalframeworkneededtoensuretheeconomicviabilityofthisinitiative.

Canada is uniquely positioned to be a global leader in responsible oil production. Thecountryhastheworld'sthird-largestoilreserves,someofthemoststringentregulationsandstandardsgoverningenergyprojectsanywhereintheworld,astrongtrackrecordfortechnologydevelopmentandanestablishedreputationofindustryworkingtogetherwith Indigenous communities and municipalities. Members of the Pathways initiative believethe most effective way to address climate change is by developing and advancing newtechnologies and that this unprecedented challenge can and will be solved by Canadian ingenuity,leadershipandcollaboration.

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Whilealternativeenergysourceswillplayanincreasinglyimportantroleinthedecades ahead, all internationally recognized forecasts indicate fossil fuels will continue to beanessentialrequirementthrough2050andbeyondaspartofadiversifiedenergymix,includingasafeedstockforcarbonfibres,asphalt,plasticsandotherimportantproducts.That's why it's critical to take action now to ensure Canada takes its place as a leadingsupplierofresponsiblyproducedoiltomeettheworld'sdemandforenergywellintothefuture.

Quotes

GovernmentofAlberta

'The Oil Sands Pathways to Net Zero initiative is an industry driven, made-in-Albertasolution which will strengthen our position as global ESG leaders,' said Sonya Savage,Alberta'sMinisterofEnergy.'Everycredibleenergyforecastindicatesthatoilwillbeamajor contributor to the energy mix in the decades ahead and even beyond 2050. Alberta isuniquely positioned and ready to meet that demand. This initiative will also pave the wayforcontinuedtechnologicaladvancements,ultimatelyleadingtotheproductionofnetzero barrelsofoil.'

CanadianNaturalResourcesLimited

'Canadahasanopportunitytoleadonclimatechangebydeliveringmeaningfulemissions reductionsaswellasbalancingsustainableeconomicdevelopment,'saidTimMcKay, Canadian Natural President. 'Canadian ingenuity has enabled oil sands developmentandwithcontinuedinnovation,positionsCanadatobetheESG-leadingbarreltomeet globalenergydemand.Wearecommittedtoworkingtogetherwithindustrypartnersand governments to help meet Canada's climate objectives while providing sustainable long-termeconomicandsocialbenefitsforCanadiansfromtheoilsands.'

CenovusEnergy

'This collaborative effort amongst oil sands peers shows our serious commitment toglobal climate leadership,' said Alex Pourbaix, Cenovus President and CEO. 'We are doingmorethanjusttalkingabouttheneedtoplayarole-wearetakingboldactiontoaddress our emissions challenge and earn our spot as the supplier of choice to meet the world'sgrowingdemandforenergy.'

Imperial

'Canada has what it takes to be the responsible energy provider to the world,' said BradCorson, Imperial Chairman, President and Chief Executive Officer. 'Canada's long-termsuccessinachievingitsclimategoalsliesinacollectivecommitmenttoinnovation,global competitiveness,supportivepublicpolicyandopenandongoingdialogueonconstructive

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solutions. Imperial is collaborating with others in industry and governments to developandcommercializethebreakthroughtechnologiesthatwillreduceemissionsandsupport society'snetzeroambitions.'

MEGEnergy

'Wearepleasedtobepartofthiscollaborativeeffortcommittedtothecriticalmeasuresneededtoachievenetzerogreenhousegasemissionsintheoilsands,'saidDerekEvans, President and Chief Executive Officer of MEG Energy. 'Bold action today demonstratesour commitment to tackling climate change and global climate leadership. This allianceworking collectively with the federal and Alberta governments and all stakeholders will ensure that Canada continues to be a leading supplier to the world of responsibly producedoil.'

SuncorEnergy

'Collaboration among companies, innovators and governments is critical to achievingambitiousgoals.That'showwebuiltabuddingoilsandsresourceintooneoftheworld'smost reliable and ESG-leading oil basins in the world,' said Mark Little, Suncor PresidentandChiefExecutiveOfficer.'Canada-asoneofthefewjurisdictionswithindustrial-scale commercial CCUS projects in operation -- coupled with Alberta's abundant natural gasresources,geologyandrelevanttechnologicalexpertise-iswellpositionedtoleadin thisarea.'

AboutthePathwaysinitiativemembercompanies

CanadianNaturalResourcesLimited

Canadian Natural Resources Limited (Canadian Natural) is a senior oil and natural gasproduction company, with continuing operations in its core areas located in WesternCanada,theU.K.portionoftheNorthSeaandOffshoreAfrica.CanadianNaturalsharestradeunderthesymbolCNQontheTorontoandNewYorkstockexchanges.RefertotheCompany'swebsiteforcompleteforward-lookingstatementsatwww.cnrl.com

CenovusEnergyInc.

CenovusEnergyInc.isanintegratedenergycompanywithoilandnaturalgasproduction operationsinCanadaandtheAsiaPacificregion,andupgrading,refiningandmarketingoperations in Canada and the United States. The company is focused on managing itsassets in a safe, innovative and cost-efficient manner, integrating environmental, socialand governance considerations into its business plans. Cenovus common shares andwarrants are listed on the Toronto and New York stock exchanges, and the company'spreferred shares are listed on the Toronto Stock Exchange under the symbol CVE. Formoreinformation,visitcenovus.com.

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Imperial

After more than a century, Imperial continues to be an industry leader in applyingtechnology and innovation to responsibly develop Canada's energy resources. AsCanada'slargestpetroleumrefiner,amajorproducerofcrudeoil,akeypetrochemical producer and a leading fuels marketer from coast to coast, our company remainscommittedtohighstandardsacrossallareasofourbusiness.

MEGEnergy

MEGisanenergycompanyfocusedonsustainableinsituthermaloilproductioninthesouthernAthabascaoilregionofAlberta,Canada.MEGisactivelydevelopinginnovative enhanced oil recovery projects that utilize steam-assisted gravity drainage ('SAGD')extraction methods to improve the responsible economic recovery of oil as well aslower carbon emissions. MEG transports and sells its thermal oil (AWB) to customersthroughoutNorthAmericaandinternationally.

SuncorEnergy

Suncor Energy is Canada's leading integrated energy company, with a global team ofover 30,000 people. Suncor's operations include oil sands development, productionandupgrading,offshoreoilandgas,petroleumrefininginCanadaandtheUS,andournationalPetro-Canadaretaildistributionnetwork(nowincludingourElectricHighway networkoffast-chargingEVstations).AmemberofDowJonesSustainabilityindexes,FTSE4Good and CDP, Suncor is responsibly developing petroleum resources, whileprofitablygrowingarenewableenergyportfolioandadvancingthetransitiontoalow-emissionsfuture.SuncorislistedontheUNGlobalCompact100stockindex.Suncor'scommonshares(symbol:SU)arelistedontheTorontoandNewYorkstockexchanges.

Advisory

Cautionary Statement: Statements of future events or conditions in this press release,including projections, targets, expectations, estimates, and business plans are forward-looking statements. Forward-looking statements can be identified by words such asachieve, aspiration, believe, anticipate, intend, propose, plan, goal, seek, project, predict,target,estimate,expect,forecast,vision,strategy,outlook,schedule,future,continue,likely, may, should, will and/or similar references to outcomes in future periods. Forward-lookingstatements in this press release include, but are not limited to, references to the viability,timing and impact of the Oil Sands Pathways to Net Zero initiative collaboration and thedevelopment of pathways in support of a net-zero future; support for the pathways fromthe Government of Alberta and the Government of Canada; the ability to enable net zeroemissionsfromoilproductionandpreserveeconomiccontributionfromtheindustry; thecontinuedroleoffossilfuelsaspartofadiversifiedenergymix;andthedeployment oftechnologiestoreduceGHGemissions,suchasCCUS,processimprovements,energy

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efficiency, fuel switching, electrification, infrastructure corridors and new emissions-reducingtechnologies.Allnet-zeroreferencesinthisannouncementapplytoemissionsfromoilsandsoperations(definedasscope1andscope2emissions).

Forward-looking statements are based on current expectations, estimates, projectionsand assumptions at the time the statements are made. Actual future results, includingexpectations and assumptions concerning: demand growth and energy source, supplyand mix; amount and timing of emissions reductions; the adoption and impact of newfacilitiesortechnologies,includingonreductionstoGHGemissions;projectplans,timing, costs, technical evaluations and capacities, and the ability to effectively execute onthese plans and operate assets; that any required support for the pathways from theGovernmentofAlbertaandtheGovernmentofCanadawillbeprovided;applicable laws and government policies, including climate change and restrictions in response toCOVID-19; production rates, growth and mix; general market conditions; and capital andenvironmental expenditures, could differ materially depending on a number of factors.Thesefactorsincludeglobal,regionalorlocalchangesinsupplyanddemandforoil,natural gas, and petroleum and petrochemical products and the resulting price, differential andmargin impacts; political or regulatory events, including changes in law or governmentpolicy and actions in response to COVID-19; the receipt, in a timely manner, of regulatoryandthird-partyapprovalsincludingfornewtechnologies;lackofrequiredsupportfromtheGovernmentofAlbertaandtheGovernmentofCanada;environmentalrisksinherentinoiland gas exploration and production activities; environmental regulation, including climate changeandGHGregulationandchangestosuchregulation;availabilityandallocation of capital; availability and performance of third-party service providers; unanticipatedtechnical or operational difficulties; project management and schedules and timelycompletion of projects; reservoir analysis and performance; unexpected technologicaldevelopments;theresultsofresearchprogramsandnewtechnologies,andabilitytobringnewtechnologiestocommercialscaleonacost-competitivebasis;operationalhazardsandrisks; general economic conditions, including the occurrence and duration of economicrecessions;andotherfactorsreferencedbythecompanies'intheirmostrecentrespectiveannualreportsandmanagement'sdiscussionandanalysis,asapplicable.

Forward-looking statements are not guarantees of future performance and involve anumberofrisksanduncertainties,somethataresimilartootheroilandgascompaniesand some that are unique to the companies. Actual results may differ materially fromthoseexpressedorimpliedbyitsforward-lookingstatementsandreadersarecautioned nottoplaceunduerelianceonthem.Thecompaniesundertakenoobligationtoupdateany forward-looking statements contained in this press release, except as required byapplicablelaw.

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