07 December 2013, News Wires – US giant CococoPhillips plans to hike capital spending by 6% to $16.7 billion in 2014 as it increases development in prolific US shale plays and prepares for the start-up of the Australia Pacific and Surmont phase 2 liquefied natural gas projects.
The company also plans greater involvement in the US state of Alaska and increased exploration and appraisal work in US shales including the Permian, Niobrara and Duvernay.
Spending in both the 2012 and 2013 fiscal years was essentially flat at $15.8 billion.
The company also expects to meet its production targets of 1.6 million barrels of oil equivalent per day, including 50,000 boepd from Libya.
Production from major project start-ups as well as from the US Eagle Ford, Bakken and Permian shales is also poised to add to output.
Chief executive Ryan Lance called 2014 “an important year for ConocoPhillips”.
“Today, we have an unparalleled inventory of opportunities that will enable us to deliver organic growth from continuing operations in 2014 and beyond,” he said in a company statement.
“In addition, our planned conventional and unconventional exploration activity should provide opportunities that can keep us on track for sustained growth and returns.”
A total of 39% of the budget will go the company’s development drilling programme, with about 90% spent in North America and about two-thirds spent in the Lower 48 US states.
ConocoPhillips is aiming for 600,000 boepd from these areas by 2017 through the programme, a goal also expected to offset natural declines at existing fields.
Roughly 35% of company spending will go toward major growth projects, including Canada’s Surmont Phase 2 LNG and expansion of oil-sands ventures at Foster Creek and Christina Lake Phase F.
Spending on the Australia Pacific LNG project will top the priority list in the Asia Pacific region, with offshore developments at the Kebabangan and Malikai projects in focus as well.
ConocoPhillips also plans to spend 13% of its budget on exploration, including a four-well programme planned off Angola for 2014 and drilling off Senegal starting in mid-2014.
In the US Gulf of Mexico appraisal is planned for the Coronado, Shenandoah and Tiber discoveries in which ConocoPhillips is a partner.
In addition to further exploration in US shales, the company also plans unconventional activity in Colombia, Poland and China.
About 13% of the budget will go to maintenance on existing company assets.