Suncor Energy (TSX, NYSE:SU), Canada’s largest oil and gas company, plans on increasing production next year while reducing capital spending at the same time.
About 40% of the 2017 capital spending plan will be spent on upstream growth projects, including Fort Hills and Hebron.
The Calgary-based firm said it expected production to jump by more than 13% next year and spending to fall by more than $1 billion.
The oil and gas producer has set a budget for capital spending of $4.8-billion-$5.2-billion for 2017 and forecast average production of 680,000-720,000 barrels of oil equivalent per day.
About 40% of the 2017 capital spending plan will be spent on upstream growth projects, including Fort Hills and Hebron, the company said.
The Fort Hills oil sands project is located in Alberta, some 90 km north of Fort McMurray, and is expected to produce oil by the end of 2017.
The Hebron oil field, located offshore Newfoundland and Labrador, is also expected to produce oil by the end of next year.
The outstanding 60% will go toward sustaining capital in the upstream, downstream and corporate segments.
