Noble’s capex budget to total $4.8 billion for 2014

Noble Energy Inc. reported its capital expenditures for 2014 will reach $4.8 billion, with 70% allocated to the US onshore and the remainder to go to international deepwater activities.

The company’s total sales volumes for 2014 from continuing operations are expected to average 302,000-322,000 boe/d, the midpoint of which represents an 18% rise over the target for 2013—after adjusting for assets divested and exchanged this year.

Noble in October swapped acreage with Anadarko Petroleum Corp. in the greater Wattenberg area of northern Colorado, with each party contributing 50,000 net acres. At the time, the company said it expected its DJ basin volumes to increase by at least 20% in 2014 (OGJ online, Oct. 21, 2013).

Total volume will consist of 46% liquids, 29% US natural gas, and 25% international gas.

Charles D. Davidson, Noble’s chairman and chief executive officer, said, “We continue to accelerate development in the DJ basin, which will receive the greatest portion of our capital program, as well as the drilling program in the wet gas area of the Marcellus shale.”

US onshore

Noble plans to invest $3.2 billion in 2014 US onshore development.

An acceleration of horizontal drilling and system development in northeastern Colorado’s DJ basin will result in the drilling of 320 operated horizontal wells, including more than 55 extended reach laterals.

The company is implementing integrated development plans in the Ranch and East Pony areas, which are expected to bring long-term efficiencies to basin operations.

Accelerated development in the Marcellus includes 170 joint venture wells encompassing almost 100 operated horizontal wells, with planned average lateral lengths of more than 7,000 ft in the liquids-rich areas of the play.

Noble also plans further exploration activity in northeastern Nevada’s Wilson oil prospect.

Sales volumes for US onshore are projected to increase 28% in the DJ basin—after adjusting for the acreage exchange—and 90% in the Marcellus driven by 2013 growth in both horizontal programs.

Global deepwater

Noble plans to allocate $1.5 billion to 2014 global deepwater programs.

In the eastern Mediterranean, progress on the onshore compression terminal in Israel will continue, as well as development at the recently sanctioned Tamar Southwest discovery.

Earlier this month the company reported the Tamar gas discovery, marking its eighth consecutive discovery in the Levant basin (OGJ Online, Dec. 4, 2013).

Noble expects to invest in the development of the sanctioned Big Bend and Gunflint projects and the 2013 Dantzler discovery in deepwater Gulf of Mexico. Dantzler, 20% working interest of which was farmed out by Noble to W&T Offshore in September (OGJ Online, Sept. 30, 2013), contains discovered gross resources estimated at 55-95 million boe (OGJ Online, Dec. 4, 2013).

In September, the company made a gas discovery with its Troubadour prospect, drilling in the Big Bend-Troubadour Rio Grande area (OGJ Online, Sept. 11, 2013).

An exploration well is anticipated in Cameroon in West Africa, and there are continued plans for a Diega project sanction and development.

Capital has also been allocated to offshore international new ventures including seismic in Sierra Leone and the Falkland Islands.

A modest increase from 2013 is expected from the company’s global deepwater sales volumes, with Israel accounting for a 15% increase with a full year of operations at Tamar. Recent production levels in West Africa are expected to hold steady as as Alen offsets other declines.

Deepwater Gulf of Mexico is expected to experience natural declines in maturing properties.

Fourth-quarter update

Noble increased its fourth-quarter sales volumes from continuing operations to 286,000-288,000 boe/d, reflecting a 5,000-boe/d rise from the prior estimate caused by better-than-expected sales in the US Onshore, West Africa, and Israel.

The company also lowered its anticipated fourth-quarter 2013 exploration expense to $200-225 million, citing successful exploration drilling in deepwater gulf and eastern Mediterranean.

Related Articles

Shell cuts $15 billion in spending for 2015-17

01/30/2015 Royal Dutch Shell PLC has curtailed more than $15 billion in potential spending over the next 3 years, but is not “not overreacting to current low ...

Victoria extends drilling, fracing ban

01/30/2015 The new Victorian Labor government of premier Daniel Andrews has extended the coal seam gas (CSG) exploration and hydraulic fracturing ban in the s...

Chevron’s $35 billion capital budget down 13% from last year

01/30/2015 Chevron Corp. will allocate $35 billion in its capital and exploratory investment program for 2015, including $4 billion of planned expenditures by...

US Senate passes bill approving Keystone XL pipeline project

01/30/2015 The US Senate has passed a bill approving construction of the proposed Keystone XL crude oil pipeline by a 62-36 vote after 3 weeks of debate. Nine...

Oxy cuts capital budget by a third

01/30/2015 In the midst of falling oil prices, Occidental Petroleum Corp., Houston, expects to reduce its total capital spending for 2015 to $5.8 billion from...

MARKET WATCH: NYMEX natural gas prices drop after storage report

01/30/2015 US natural gas closed at its lowest price in more than 2 years on the New York market Jan. 29 following the government’s weekly gas storage report,...

Pennsylvania governor reinstates state forest drilling moratorium

01/29/2015 Pennsylvania Gov. Tom Wolf (D) signed an executive order fully reinstating a 2010 moratorium on new oil and gas leases in state forests and parks. ...

PwC: Low oil prices might drive surge in restructuring in 2015

01/29/2015 Mergers and acquisitions (M&A) in the oil and gas industry hit 10-year highs in terms of deal value and volume in 2014, according to a report f...

DOE could meet 45-day LNG export decision deadline, Senate panel told

01/29/2015 The US Department of Energy would have no trouble meeting a 45-day deadline to reach a national interest determination for proposed LNG export faci...
White Papers

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected