Cenovus Energy is planning to increase their capital spending in 2020.
The oil company announced on Tuesday they will be looking to invest between $1.3 billion and $1.5 billion next year.
This is up from the $1.1 billion to $1.2 billion they had projected for 2019.
“This budget positions us well to generate adjusted funds flow of more than $3 billion in 2020 under our price assumptions – a strong start for the first year of our five-year business plan designed to generate significant free funds flow,” said Alex Pourbaix, Cenovus President & Chief Executive Officer, in a release.
Cenovus is also projecting to increase production at their Christina Lake site, south of Fort McMurray.
In 2019, the oilsands was able to produce around 198,000 barrels per day, now the company is looking to increase their daily output to between 225,000 and 235,000 bbls/d.
The increase will come from the continuation of Cenovus’ Phase G project which was delayed in 2019 due to the provincial government’s curtailment program.
Overall, their daily output from the oilsands is expected to be between 390,000 – 410,000 bbls/d, up from the 361,000 they peaked at in 2019.
Meanwhile, Cenovus also plans to spend between $705 million to $820 million on its oilsands projects, the majority of the funds being used to maintain operations at their Christina Lake and Foster Creek sites.