North Sea player Canadian Natural Resources used the occasion of its earnings reporting to disclose a smaller 2009 capital budget, down 47 percent over what 2008 became to $4 billion.

The $4 billion is aimed at generating up to $3.2 billion of free cash flow beyond the payment of debt, where much of the spending is going. The spending cut was made largely from opting not to expand oil sands at Fort McMurray.

The North Sea will see a second consecutive year of diminished spending, as the company’s well count is seen falling off by two wells to one. “We are able to further curtail spending if commodity prices continue to deteriorate or accelerate capital spending during the second half should the economics rebound,” vice chair John Langille stated.

Offshore West Africa stands to gain, with a near-quadrupling of well activity, some eight wells, expected in the prolific oil province. CNR expects its production to spike by 50,000 barrels of oil equivalent per day to 651,000 boed. Much of it, some 426,000 bpd, will be crude — up 30 percent.

Less production from the North Sea is seen being made up for ramping up Horizon, Primrose East and Pelican Lake oilsands.

A large crude oil and natural gas drilling program in Canada is seen hiking spending 15 percent.

"Third quarter results show the discipline of Canadian Natural as cash flow from operations and capital expenditures were balanced for the quarter,” Langille said.

Tags: Canadian Natural Resources (CNR)