Onerous Contract Provisions

6 Months Ended

Jun. 30, 2019

Onerous Contracts Provision [Abstract]

Onerous Contract Provisions

16. ONEROUS CONTRACT PROVISIONS

	Total
As at January 1, 2019 (Note 3)		78
Liabilities Settled		(6	)
Change in Assumptions		(11	)
Change in Discount Rate		4
Unwinding of Discount on Onerous Contract Provisions		2
As at June 30, 2019		67
Less: Current Portion		16
Long-Term Portion		51

The provision for onerous contracts relates to the non-lease components of lease liabilities, including operating costs and unreserved parking related to office space in Calgary, Alberta. The provision represents the present value of the difference between the future payments that Cenovus is obligated to make under the non-cancellable contracts and the estimated sublease recoveries, discounted at a credit-adjusted risk-free rate of between 2.9 percent and 4.1 percent. The onerous contract provision is expected to be settled in periods up to and including the year 2040. The estimate may vary as a result of changes in the use of the leased office space and sublease arrangements, where applicable.