Husky Energy to boost spending in oil sands in 2017

Husky Energy's Lloydminster operations. Photo by Eric Healey/Postmedia Network

CALGARY, A.B. — Husky Energy says it’s planning to increase its capital spending program next year to between US$2.6 billion and US$2.7 billion.

That’s up from about US$2 billion this year, which was about $100 million below Husky’s previous estimate.

Husky is also planning to increase daily oil production next year as volumes increase from several projects.

Current production at its Sunrise oilsands operation north-east of Fort McMurray, is expected to be from 40,000 to 44,000 barrels per day, up from the current level of 35,000 barrels per day.

Production is also scheduled to rise from several heavy-oil thermal projects, mostly in the Lloydminster area near the Alberta-Saskatchewan boundary.

The Calgary-based multinational says its average daily production in 2016 is on track to be between 318,000 and 320,000 barrels per day and will rise to between 320,000 and 335,000 barrels per day in 2017.