Commissioning of the CPF, first steam and first oil production from phase 1 is expected in 2014 and we anticipate ERCB approval in 2013 for an additional 20,000 bbl/d for the phase 2 expansion of the project.
The cash deficiency from Harvest's Downstream operations was $33.0 million in the first quarter of 2013 compared to a cash deficiency of $23.9 million in the same period in 2012 due mainly to a 45% per barrel decrease in the average refining margin per barrel.
Harvest's average refining margin of US$2.51/bbl was lower than US$4.58/bbl in the first quarter of 2012 as a consequence of lower product prices and change in product mix. Product mix is determined by quality of feedstock and processes available to refine the feedstock. In February a storm caused an unplanned power outage resulting in a total shutdown of the refinery. The refinery also experienced some minor equipment upsets in the quarter which affected the production of distillates. Changes to the product mix resulted with increased production and sales of lower margin heavy fuel oil and a decrease in production and sales of higher margin distillates.
Throughput at the facility averaged 100,074/bbl/d, flat from 100,000 bbl/d in the first quarter of 2012. Throughput rates in the first quarter of 2012 reflect the strategic decision to reduce throughput rates in response to declining refining margins.
Capital asset additions for the three months ended March 31, 2013 totaled $12.5 million, relating to various capital and maintenance projects. The remaining capital spending in 2013 is focused on sustaining and reliability improvement projects. The 2013 capital budget for the Downstream operations has been revised from $118 million to $55 million by deferring the fall 2013 turnaround by approximately one year.
Cash flow from operating activities for the first quarter of 2013 was $66.6 million compared to $85.1 million in 2012, representing a 22% decrease reflecting the lower cash contributions from our Upstream and Downstream businesses.
On March 1, 2013 Harvest announced that it would redeem the $60,050,000 principal amount of its 7.25% convertible unsecured subordinated debentures (the "2014 Debentures") scheduled to mature in February 2014 on April 2, 2013. Upon redemption, Harvest paid holders of 2014 Debentures the outstanding principal amount for a total of $1,006.5547 per $1,000 principal amount.
On March 14, 2013 entered into a US$400 million senior unsecured credit facility (the "Bridge Loan") irrevocably and unconditionally guaranteed by the Korea National Oil Corporation ("KNOC") to finance the 2013 Debentures and 2014 Debentures redemption. On March 15, 2013, Harvest announced the redemption of the $330,548,000 principal amount of its 7.25% convertible unsecured subordinated debentures (the "2013 Debentures").
The 2013 Debentures were scheduled to mature in September 2013. Upon redemption on April 15, 2013, Harvest paid holders of 2013 Debentures the outstanding principal amount for a total of $1,002.9794 per $1,000 principal amount.
In April, Mr. Brant Sangster and Mr. William Friley resigned from the Harvest Board of Directors. Harvest would like to thank Mr. Sangster and Mr. Friley for their contribution to the Harvest Board over the last several years.
In May, Harvest welcomed Mr. Allan Buchignani, Mr. Randy Henderson and Mr. Richard Kines to the Board of Directors. Both Mr. Henderson and Mr. Kines are Chartered Accountants and Mr. Buchignani is a Professional Engineer. All three gentlemen have extensive industry and professional experience.
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