Anadarko to allocate 70% of 2019 capex to US onshore
Anadarko Petroleum Corporation will invest 70% of its 2019 capital expenditures budget on the US onshore, where it expects to operate an average of 15 rigs and ten completion crews focused mainly on development in the Delaware and DJ basins.
A decrease relative to its 2018 capital investment programme, the 2019 programme of US$4.3-4.7 billion advances development of the company’s core assets, the company said, noting an expectation to deliver 10% oil growth year-over-year.
Anadarko will allocate US$1.4 billion to upstream activities in the Delaware basin where infrastructure expansion, including oil gathering and treating throughout West Texas, “has paved the way to transition to multiwell pad development, as illustrated by the encouraging early results at the Silvertip-A campaign,” the company said.
Anadarko continued operations on the Silvertip-A campaign in the northern Loving area in this year’s third quarter, as detailed in a late October operations report. Completions operations on 12 extended-lateral wells focused on four Wolfcamp-A targets and one third Bone Spring target concluded in the quarter. Five wells were connected to permanent facilities and are flowing to the Loving ROTF with encouraging early results, the company said.
In the DJ basin of north-east Colorado, the company expects to invest US$1.3 billion on upstream activities in 2019, with continued development of its position in the Wattenberg field.
In Wyoming’s Powder River basin, the company plans to complete 10-15 operated horizontal wells to progress appraisal efforts targeting the southern Turner-formation fairway in Converse County.
Anadarko plans to allocate US$500 million to its deep-water Gulf of Mexico operations – about $300 million less than the current year – “while delivering a similar number of wells and maintaining production levels of 140,000-150,000 boe/d,” it said.
Operations in Algeria and Ghana will see about US$200 million, where the company expects stable year-over-year, Brent-levered oil production.
Offshore Ghana, investments will be focused on adding incremental wells to optimise capacity at the Jubilee and TEN floating production, storage, and offloading vessels.
Exploration investments in 2019 are expected to total about US$250 million, focused on identifying material and scalable opportunities in the US onshore and satellite opportunities near existing operated facilities in the deep-water gulf.
About US$200 million is earmarked for the Mozambique LNG project, pre-FID, for costs associated with ongoing site preparation for shared onshore facilities. FID consideration remains on track for first-half 2019.
Source: Oil & Gas Journal