Canadian Natural Resources sets 2022 budget, eyes conventional growth

Canadian Natural Resources Ltd., Calgary, expects its 2022 budget to target base capital of about $3.6 billion that delivers targeted production of 1.27-1.32 MMboe/d, with year-over-year near-term growth of about 60,000 boe/d primarily from production growth in conventional exploration and production operations.

In 2022, growth capital of about $700 million will be allocated to long-life, low decline thermal in situ and oil sands mining and upgrading assets which targets incremental annual production in 2023 and beyond, resulting in total production increases of 63,000 b/d by 2025.

Thermal in situ production is targeted to add about 22,000 b/d in 2024, increasing to about 49,000 b/d in 2025. Growth capital being allocated to oil sands mining and upgrading in 2022 is targeted to reduce required turnaround times in the future, increasing the capacity of zero decline, high value production by about 5,000 b/d of synthetic crude oil in 2023, increasing to about 14,000 b/d in 2025.

Planned turnarounds at our Oil Sands Mining and Upgrading assets, which are incorporated in the above 2022 production target, are expected to impact yearly production volumes by about 35,000 b/d.

The product mix is targeted at 46% light and synthetic crude oil, 28% heavy crude oil, and 26% natural gas.

Liquids production, including synthetic crude oil, is targeted at 940,000-982,000 b/d, of which long life low decline production is targeted to be some 78% of total liquids production.

Conventional E&P liquids production is targeted at 250,000-267,000 b/d.

Natural gas production is targeted at 1,980-2,030 MMcfd, representing growth of about 18% from targeted 2021 levels.