Several Canadian companies plan to increase exploration and development spending in 1992, while others are cutting budgets.
Imperial Oil Ltd. will increase E&D outlays by about 10% from 1991 levels to $635 million. Imperial, which lost money last year, said the spending increase will be financed from internal operations.
The company is withdrawing from the fertilizer and polyvinyl sectors of the chemical industry and will concentrate its chemical operations on polyethylene.
Imperial's Phases 7 and 8 of its heavy oil development project at Cold Lake, Alta., remain on hold but will be reassessed later in the year.
PanCanadian Petroleum Ltd., Calgary, plans to increase its upstream spending by 4% in 1992 to about $400 million. It forecast a narrowing spread between light and heavy crude price. PanCanadian predicted the average reference price for crude will be slightly lower in 1992, and price volatility will continue.
Norcen Energy Ltd., Calgary expects to cut 1992 capital spending to $208 million from a previously planned $259 million because of lower projected oil and gas prices. Norcen will spend $78 million on exploration, $105 million on development, $23 million on propane marketing, and $2 million on other oil and gas ventures.
Norcen operates mainly in western Canada and the U.S. Gulf Coast. It also plans spending in Malaysia, Indonesia, and Argentina, but will cut outlays in Australia.
Among adjustments to hard times, Mobil Oil Canada Ltd. plans to cut its workforce by 27% or 300 jobs from a present payroll of 1,100. The cut is the latest in a series of moves by Canadian companies in response to losses and low oil and gas prices.
The company said voluntary departure packages have been offered to all staff but some layoffs are inevitable. Mobil's payroll peaked at about 2,000 in 1986 after a takeover of Canadian Superior Oil & Gas Ltd.
Company spokesman Graham Connell said the cut affects Mobil's western Canada operations.
The Hibernia oil field development program off Newfoundland is not affected.
Connell said Mobil remains fully committed to Hibernia development. The future of the $5.2 billion project has been in question since Gulf Canada Resources Ltd. said it is withdrawing as a partner.
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