By the OGJ Online Staff
HOUSTON, Feb. 1 -- Marathon Oil Corp. said Friday its 2002 capital budget is $1.8 billion, up 3% from the $1.73 billion spent in 2001, excluding acquisitions.
Earlier this week, the company announced fourth quarter revenues plunged to $98 million, although 2001 earnings were a record $1.485 billion (OGJ Online, Jan. 29, 2002).
The new budget includes exploration and production capital investments of $607 million on existing assets and those under development, $289 million for exploration spending, and $794 million for refining, marketing and transportation projects, with the balance earmarked for other energy-related businesses and corporate activities.
Marathon President and CEO Clarence Cazalot Jr., said, "This CAPEX budget has been structured to enable us to fund the investments we have identified in our 2002 business plan, each of which supports our goal of delivering profitable growth and increased shareholder value."
In addition to the base CAPEX budget, Marathon anticipates 2002 upstream acquisition expenditures of $1.1 billion, including the recently completed $993 million acquisition of CMS Energy Co.'s interests in Equatorial Guinea and previously announced acquisitions in Norway. In 2001, upstream acquisitions were $534 million, mostly attributable to Marathon's acquisition of Pennaco Energy.
International and domestic upstream operations will be allocated $293 million and $314 million, respectively, compared to 2001 actual expenditures of $259 million and $359 million. Marathon's 2002 worldwide exploration budget of $289 million is $118 million less than 2001 actual exploration expenditures of $407 million, due largely to reduced capital lease investments.
Refining, marketing, and transportation capital expenditures, which include 100% of Marathon Ashland Petroleum LLC, are expected to be $794 million compared to actual 2001 expenditures of $576 million. The allocation will cover investments of $441 million on refining, marketing, and brand related projects.