By OGJ editors
HOUSTON, Dec. 21 -- Kerr-McGee Corp. has budgeted $1.3 billion for capital expenditures and $300 million for exploration in 2006.
It expects 2006 oil and gas production of 234,000-250,000 boe/d, about 60% gas and 40% liquids.
The capital budget for 2006 includes drilling of about 680 development wells and work on three major facilities in the deepwater Gulf of Mexico. Spending includes $580 million in Kerr-McGee's Rockies division, $170 million in the southern division, $400 million in the deepwater gulf, and $150 million in international projects and new ventures.
Of the 680 development wells planned, about 560 will be drilled in the Greater Natural Buttes, Wattenberg, and northern Rockies areas, the company said. The company expects to expand activity in the Greater Natural Buttes area of eastern Utah by drilling about 220 wells.
The company plans to drill 230 development wells in Wattenberg field of northeastern Colorado and 110 wells in the northern Rockies. In the southern division, Kerr-McGee plans to drill 110 development wells, mostly in South Texas, the Midcontinent, and the Gulf Coast.
Kerr-McGee's deepwater gulf projects include Constitution and Ticonderoga fields (Kerr-McGee 100% and 50% working interests, respectively). The company expects production to start in second-quarter 2006.
The 2006 budget also will fund continued development of the Kerr-McGee-operated Merganser field, in which Kerr-McGee holds a 50% working interest, Vortex field (50%), and San Jacinto field (20%). First production is expected in mid-2007. Another deepwater Gulf of Mexico project included in Kerr-McGee's 2006 capital program is the Blind Faith development (Kerr-McGee 37.5% working interest) scheduled for first production in mid-2008.
In China's Bohai Bay, Kerr-McGee's capital program includes the development of three satellite fields, CFD 11-6, CFD 12-1, and CFD 12-1S, which are expected to achieve first production in 2006.
Kerr-McGee's average production rates for 2006 are projected to be 95,500-103,100 b/d of liquids and 830-880 MMcfd of gas. About 84% of liquids and all of the gas will come from the US. Remaining liquid production will be Bohai Bay.
