Canadian Natural Halts Oil Sands Expansion Until Government Agreements Finalized

Canadian Natural Resources (CNQ.TO) has paused its mid- to long-term oil sands expansion projects until the details of a memorandum of understanding with the Canadian and Alberta governments are finalized in binding legal agreements, according to CEO Scott Stauth.

The company's approximately C$650 million, 30,000-barrel-per-day Jackfish project and its approximately C$2.5 billion, 70,000-bpd Pike 2 project remain on hold, as do longer-term projects such as the proposed 150,000-bpd Jackpine mine expansion.

Canadian Natural raised its full-year production forecast for the second time this year and beat analysts' estimates for second-quarter profit, with a record production and stronger crude prices boosting earnings.