Canadian Natural Resources Limited is cutting next year’s budget despite an expected increase in production.
On Tuesday, the oil giant announced their 2018 budget, which is being targeted at $4.3 billion, which is $500 million less than 2017.
CNRL notes overall production will be between 1,090,000 and 1,170,000 BOE/d.
This production would be 17 per cent more than 2017.
As for crude oil, there anticipating a 23 per cent increase in production ranging from 815,000 bbl/d to 885,000 bbl/d. This is up roughly 160,000 bbl/d from this year.
CNRL says this is largely due to the completion of the Phase 3 expansion at Horizon Oilsands Mining & Upgrading, announced in their third-quarter report.
“Canadian Natural’s transition to a long life low decline asset base is complete, as the Horizon Phase 3 expansion has been successfully executed,” said Steve Laut, President, in a release.
The company is also expecting to have around $7.9 billion to $8.3 billion in funds from their operations. They’re also looking at approximately $2.3 billion to $2.7 billion of free cash flow.
Targeted maintenance is also being budgeted at $3 million.