Canadian Natural foresees North Sea cost improvements

Canadian Natural is targeting light crude oil production next year from its international operations in the 43,000-49,000 b/d range.

Offshore staff

CALGARY, CanadaCanadian Natural is targeting light crude oil production next year from its international operations in the 43,000-49,000 b/d range.

This would represent a decrease of around 8% from 2016, reflecting natural production declines primarily at theEspoir and Baobab fields offshore Côte d’Ivoire.

The company has budgeted international capex next year in-line with 2016 levels at $420 million, including roughly $190 million fordecommissioning of the Murchison field in the UK northern North Sea and other abandonments.

However, due to changes in the UK’s tax regime in 2016, investment in theNorth Sea has become more viable, the company says.

It therefore plans to increase drilling activity next year by adding three producer wells.

In addition, it is targeting improved North Sea operating costs in the $33-$36/bbl range.

Offshore Africa, targeted opex is $10.50-12.50/bbl.

12/20/2016

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