ConocoPhillips announces 2014 budget of $16.7 B
The company announced a 2014 capital expenditures budget of $16.7 billion (B) for continuing operations. Approximately 55% of the budget is allocated toward North America and 45% toward Europe, Asia-Pacific and other international businesses. Some highlights of the company's 2014 investment program include:
- Peak spending at the Australia Pacific Liquefied Natural Gas (APLNG) project, and ongoing high levels of spending at the Surmont Phase 2 oil sands project in Canada, in anticipation of first production from both projects in 2015
- Increased investment in successful development drilling programs in the Eagle Ford and Bakken shales, and the Permian basin
- Higher allocation of capital to Alaska compared to 2013, reflecting increased spending on the CD-5 development and higher activity resulting from improved fiscal terms
- Increased exploration and appraisal activity in several North American unconventional plays, including the Permian basin, the Niobrara shale and the Duvernay formation
- A ramp-up in operated conventional exploration drilling programs in the deepwater Gulf of Mexico and Angola.
The capital budget includes funding for base maintenance, development drilling programs, major projects, and exploration and appraisal spending, as well as corporate expenditures.
Approximately two-thirds of development drilling program funds will be spent in the Lower 48 US states, primarily targeting development in the liquids-rich, unconventional plays in the Eagle Ford, Bakken and Niobrara, as well as conventional and unconventional plays in the Permian.
The remaining one-third is targeted toward other conventional and unconventional opportunities, mainly in Alaska, Canada, Norway and Western Australia.
In the Asia-Pacific region, capital will be allocated primarily to the APLNG joint venture, which will see peak spending in 2014 in preparation for first LNG expected in mid-2015. Funding will also target offshore developments in Malaysia, including construction at the Kebabangan and Malikai projects.
ConocoPhillips will provide further details on its 2014 outlook during its upcoming 4Q conference call in January 2014.
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