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Cenovus says capital spending to edge higher in 2020, production to rise

Cenovus president and CEO Alex Pourbaix, left, addresses the company's annual meeting in Calgary, Wednesday, April 25, 2018.
Cenovus president and CEO Alex Pourbaix, left, addresses the company's annual meeting in Calgary, Wednesday, April 25, 2018. THE CANADIAN PRESS/Jeff McIntosh

Cenovus Energy Inc. plans to increase its capital spending in 2020 compared with this year.

The energy company says it plans to invest between $1.3 billion and $1.5 billion in 2020, up from between $1.1 billion and $1.2 billion in 2019.

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Cenovus says the increase is largely due to a deferral of spending this year following the mandatory production curtailments in Alberta.

In its outlook for 2020, Cenovus expects total production in 2020 to increase seven per cent compared with its guidance for 2019.

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It says its crude-by-rail program, combined with the Alberta government’s special production allowances, will position the company to move to unconstrained production levels.

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Per-barrel oilsands non-fuel operating costs are expected to decrease by approximately five per cent.