CNRL says spending plans delayed by Alberta govt uncertainty

Wed May 27, 2015 2:55pm EDT
 
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By Nia Williams

CALGARY, Alberta May 27 (Reuters) - Canadian Natural Resources Ltd is delaying setting out detailed future spending plans due to uncertainty about the energy policies of Alberta's New Democratic Party government, the company said on Wednesday.

Premier Rachel Notley's rookie NDP government swept to power earlier this month, ending 44 years of Progressive Conservative party rule in a win that unsettled many oil industry players.

The NDP has pledged to raise corporate taxes and review the complex royalty rate system that governs how much producers in Alberta pay to the province.

CNRL, Canada's No 1 independent oil producer, had planned to hold an institutional investor open house on June 17 but said that will be deferred until greater clarity on government policies allows the company to finalize spending plans.

"Due to the current uncertainty surrounding the Government of Alberta's review of royalty, taxation, environmental and greenhouse gas policies, detailed future capital allocation plans for each of the Company's assets cannot be finalized at this time," CNRL said in a statement.

Instead the company will hold a conference call on June 17 outlining its strategy in the current low oil price environment. (Editing by Jonathan Oatis)