By the OGJ Online Staff
HOUSTON, Jan. 14 -- Talisman Energy Inc., Calgary, plans to spend $2 billion (Can.) on exploration and development in 2002, up 6% from last year.
More than 70% of the budget will be spent on development projects. Two-thirds will be spent on Canada and the North Sea.
Two-thirds of the $745 million allocated for Canada will be earmarked for natural gas, down by about 15% from 2001 because of natural gas price uncertainty. Major investment will go to the Greater Arch, Alberta Foothills, and Bigstone Wild River areas. Talisman will also evaluate heavy oil and coalbed methane leases in Western Canada.
The North Sea budget of $595 million is weighted heavily toward development in the Clyde, Buchan, and Ross/Blake core areas and the Flotta Catchment area.
Talisman will spend $90 million in Indonesia, $215 million in Malaysia, and $115 million in the Sudan.
Pres. and CEO Jim Buckee said, "Major new areas of investment this year will be in Algeria, Malaysia, and Trinidad. We will spend approximately $70 million in Algeria, with first production expected in 2003 and approximately $215 million in Malaysia, with planned production of over 40,000 boe/d in 2004. The capital budget for Trinidad is $110 million for exploration, appraisal, and development of our recent, very large oil and gas discoveries."
"In the absence of major transactions," said Talisman, "production in 2002 is expected to average between 450,000 [and] 480,000 boe/d, up approximately 10% from 2001." Fourth quarter production averaged 450,000 boe/d.
Oil production is expected to increase by 17% in 2002, mostly from the North Sea, reflecting a full year of production from Ross and Blake fields, start-up of the Halley and Hannay oil fields, and ongoing development drilling. Gas production should increase by about 3%.
