Approximately 35 percent of the 2004 capital budget has been allocated for exploration opportunities, and 65 percent has been dedicated to production and development projects. Domestic spending is budgeted for $270 million, or 59 percent of the 2004 capital budget, and international expenditures are budgeted for $190 million, or 41 percent.
"Over the past two years, we have completed major, capital intensive projects in Ecuador, China, Israel and Phase 2A in Equatorial Guinea," stated Charles D. Davidson, Noble Energy's Chairman, President and CEO. "With these important projects completed, our international capital commitments are declining rapidly. At the same time, they are contributing significantly to our financial and operating results. As a result, Noble Energy is now in the early stages of a significant transformation to a company with enhanced financial flexibility, and our 2004 capital budget reflects that."
Noble Energy's 2004 domestic capital budget is $270 million, with approximately two-thirds earmarked for the offshore division and one-third for the onshore division. Of the total domestic capital budget, approximately 55 percent is earmarked for exploration, and 45 percent is for production and development.
Of the $190 million international capital budget for 2004, 84 percent is dedicated to production and development projects. Planned expenditures have been allocated to the regions where Noble Energy is most active as follows:
In the Middle East and Africa, $89 million has been allocated to Equatorial Guinea, primarily to complete the Phase 2B Alba field condensate and LPG expansion project. Phase 2B is scheduled to be completed by the end of 2004. Upon completion of Phase 2B, gross condensate and LPG production from the Alba field will increase to approximately 52,000 barrels per day (Bpd) and 16,700 Bpd, respectively. Phase 2A, which was completed and commenced production in late November 2003, is an expansion project designed to increase condensate production from 18,300 Bpd to over 46,000 Bpd. Phase 2A is expected to reach full production by the end of the first quarter of 2004.
In the Far East and Latin America, additional development drilling in Ecuador is planned for the first half of 2004. Approximately $55 million has been budgeted for one sidetrack and up to three development wells. If successful, the 2004 development drilling program in Ecuador is expected to add sufficient natural gas deliverability to supply the company's power plant in Machala for the next decade.
Average barrels of oil equivalent production from continuing operations in 2004 is expected to increase in a range from ten percent to 17 percent compared to the full year 2003. Noble Energy's production profile will be impacted by several factors, including:
Major international projects scheduled to contribute incremental production this year include:
Compared to the full year 2003, costs and expenses may vary as follows:
The above estimates do not include the impact of Noble Energy's possible asset purchases or sales, if any.
Most Popular Articles
From the Career Center
Jobs that may interest you