ConocoPhillips increasing Canadian spending in 2019

Aerial view of ConocoPhillips Canada's Surmont SAGD project south of Fort McMurray. Image: ConocoPhillips Canada

ConocoPhillips says it is increasing its upstream Canadian oil and gas spending next year by about 67 percent compared to 2018.

The company announced a $6.1 billion capital budget for 2019 on Monday, primarily focused on the U.S. Lower 48.

But $500 million of the spend will be allocated to Canada, up from $300 million this year.

“The increase primarily reflects ongoing appraisal and development activity in the Montney unconventional program, in which the company significantly expanded its 100 percent owned and operated position in the liquids-rich window of the play during 2018,” ConocoPhillips said in a statement.

“Operations are currently underway to drill a multi-well pad and install processing capacity to appraise this position.

The capital spending increase also includes upgrades at the company’s 148,000-bbl/d Surmont SAGD project “to significantly enhance diluent flexibility and improve netbacks.”