Husky looks to next year's numbers
Canada's Husky Energy has earmarked a capital spending budget of C$3.7 billion (US$3.65 billion) for 2008.
The company said the spending plan will help it maintain production in western Canada next year and also support exploration in the oil sands, offshore the east coast of Canada and abroad.
Husky estimates production in 2008 of 385,000 to 410,000 barrels of oil equivalent per day, up from an expected average production of about 380,000 boepd this year.
"Our 2008 capital expenditure programme concentrates on medium and long-term project development and is approximately 28% above our forecast for 2007," said boss John Lau.
"The company's strategy is to focus on growth and high return projects offshore the East Coast of Canada, China and Indonesia as well as enable the company to move forward with its integrated bitumen development at Sunrise."
Husky will reduce Western Canadian expenditures by C$100 million to C$1.5 billion next year.
The company expects gas output of 625 million to 655 million cubic feet a day. The company was forced to reduce its outlook this year due to low prices and high operating costs.
It will spend C$170 million on exploration in British Columbia and shallow-depth gas drilling in Alberta, it said.
Among big projects, Husky has budgeted C$425 million for the White Rose satellite tie-back project at North Amethyst and C$120 million for the existing White Rose development off the Newfoundland coast.
It will spend C$430 million on projects in China and Indonesia. About C$310 million will go to the Liwan find in the South China Sea. The rest is for exploration in the South and East China Seas and to advance the Madura field off Indonesia.
In Canada, Husky will spend C$100 million on its Tucker oil sands project as it drills more wells to maintain output.