Canadian Natural Resources (CNR) has increased its spending forecast for next year as the Calgary-based player aims to boost output with more drilling planned.

CNR’s capital budget for next year has been raised to approximately C$3.9 billion (US$2.9 billion), compared to C$3.8 billion spent this year. The budget is aimed to support plans to boost production by 6%, according to the company.

CNR is targeting a production of between 833,000 barrels of oil equivalent per day and 883,000 boepd next year, with a product mix of approximately 65% crude oil and NGLs and 35% natural gas. The guidance compares to 808,000 boepd in 2016.

The third phase of the Horizon project is due to be completed in the fourth quarter of next year, which will add around 80,000 barrels per day.

Next year will also see a boost in drilling activity, CNR said. North American crude oil and NGL capital spending is targeted to be approximately $910 million, supporting a targeted production of 232,000 bpd to 242,000 bpd, representing a 2% decrease from 2016 production levels.

Total thermal in situ 2017 capital is targeted to be C$365 million as the company is aiming to drill 54 producing wells.

Internationally, the company is targeting a C$420 million capex, with C$190 million to be spent on the decommissioning of the Murchison field and other abandonments.

“Due to changes in the UK’s tax regime in 2016, economic investment in the North Sea has become more viable. As a result, the company will increase its drilling programme in the North Sea and drill three producing wells in 2017,” CNR said.

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CNR boosts capex, output guidance