Marathon Oil Tags $4.82B for 2012 Capex

(Dow Jones Newswires), Dec. 7, 2011

Marathon Oil plans to spend about $4.82 billion next year for its capital, investment and exploration expenses as the company continues to focus on its liquids-rich, growth assets.

Nearly half of the company's 2012 capital budget is designated for ramping up its operations in the Eagle Ford shale, a promising natural-gas and oil-bearing rock formation in south Texas.

Chairman and Chief Executive Clarence P. Cazalot Jr. said the budget "highlights our continued focus on the liquids-rich U.S. resource plays that will provide the greatest amount of the company's projected 5% to 7% compound average production growth from 2010 to 2016."

Marathon had set its 2011 capital, investment and exploration budget in February at $5.27 billion and said in August it would spend $3.9 billion, excluding discontinued operations, asset acquisitions and associated development capital.

In 2012, the company plans to spend about $900 million on its base exploration and production assets and $3 billion on exploration and production growth projects, such as the Eagle Ford shale, North Dakota's Bakken shale and the Anadarko Woodford shale in Oklahoma.

Marathon has also budgeted $275 million for its oil sands mining segment and $160 million for corporate expenses.

Last month, the company reported its third-quarter profit soared as favorable crude oil acquisition costs contributed to a 30% revenue increase.

Copyright (c) 2011 Dow Jones & Company, Inc.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Tax Specialist Required for Global Service Company in Houston
Expertise: Accounting
Location: Houston, TX
Administrator / Office Supervisor
Expertise: Accounting
Location: Sugar Land
Production Planner
Expertise: Planner / Scheduler|Project Controls
Location: Panama City, FL
search for more jobs

Brent Crude Oil : $52.42/BBL 2.12%
Light Crude Oil : $49.51/BBL 2.35%
Natural Gas : $3.17/MMBtu 2.25%
Updated in last 24 hours