Imperial Oil Ltd said it expects CAD 2-2.2 billion ($1.6 billion) in capital and exploration expenditure for next year, compared to CAD 1.9-2.1 billion for this year.
The Canadian oil sands-focused producer, majority-owned by Exxon Mobil Corp, earlier announced a cost-saving restructuring plan.
“The company’s strategy remains focused on maximizing the value of its existing assets and progressing advantaged high-value growth opportunities while delivering industry-leading returns to shareholders”, Imperial said in a guidance statement.
Imperial expects a gross production of 441,000-460,000 gross oil equivalent barrels per day (boed) in 2026.
In the first nine months of 2025, Imperial averaged 436,000 boed gross, according to its third quarter report October 31. While that fell short of the upper end of its 2025 projection of 433,000-456,000 boed, the third quarter figure was 462,000 boed, the company’s highest quarterly output in over 30 years with Kearl recording its highest-ever quarterly gross production at 316,000 barrels per day (bpd).
“Higher volumes reflect reliability improvements and continued growth at Kearl and Cold Lake, progressing towards targets of 300,000 and 165,000 barrels per day respectively”, Imperial said of its production forecast for 2026. “Turnarounds are planned at Cold Lake, Syncrude and at Kearl, where planned work at the K1 plant will extend the turnaround interval from two years to four years”.
Next year Imperial “will progress secondary bitumen recovery projects at Kearl, high-value infill drilling and Mahihkan SA-SAGD at Cold Lake and mine progression at both Kearl and Syncrude”, the company said.
Downstream, Imperial expects to process 395,000-405,000 bpd with a utilization rate of 91-93 percent.
“The company is planning to complete turnarounds at Strathcona and Sarnia”, Imperial said. “At Strathcona, the work will focus on the crude unit, after achieving its longest-ever run length of 10 years.
“Imperial continues to focus on further improving and maximizing profitability of its downstream business by leveraging its coast-to-coast network of advantaged logistics and strong brand loyalty programs to move products, including renewable diesel, to high-value markets”.
Chair, president and chief executive John Whelan said, “Our 2026 plan builds on Imperial’s strong foundation and positions the company to structurally increase cash flow, by progressing towards volume and unit cash cost targets at Kearl and Cold Lake”.
On September 29 Imperial announced a restructuring plan that it expects would cut annual expenses by CAD 150 million by 2028 and reduce its workforce by about 20 percent by 2027.
“As part of this change, Imperial will further consolidate activities to its operating sites, enhancing collaboration, operational focus and execution excellence”, Imperial said.
“The restructuring is consistent with Imperial’s strategy to maximize value, using technology and leveraging the company’s relationship with ExxonMobil”, it said.
“With data availability and processing capabilities growing at an accelerating pace, the changes are designed to fully leverage globally available expertise to maximize the benefits of current technology and accelerate the cost-effective deployment of new technologies that drive value and enhance financial resilience”, Imperial added.
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