By OGJ editors
HOUSTON, Feb. 3 -- Marathon Oil Corp. approved a $3.4 billion budget for 2006, a 13% increase over the company's actual 2005 spending of $3 billion.
The 2006 budget excludes $732 million associated with Marathon's return to Libya. The company holds 16.33% interest in the Oasis group of producers, which signed an agreement with Libya in late December 2005 (OGJ, Jan. 23, 2006, p. 31).
Marathon's worldwide exploration and exploitation budget is $588 million, of which 60% is for exploration, including the drilling of 19 wells. The exploration budget is $80 million higher than 2005 spending and reflects increased activity in Angola.
Exploitation activity, representing 40% of the overall budget, is focused on projects in or adjacent to Marathon's producing US properties. Worldwide production capital spending is projected at $1.357 billion.
Key investments continue off Norway for Alvheim area oil fields and the Vilje oil discovery, formerly known as Klegg, Marathon said. Alvheim area fields are expected to come on stream in early 2007 at a forecast production rate of 85,000 boe/d (OGJ, Aug. 22, 2005, p. 36).
Refining, marketing, and transportation capital spending is expected to total $886 million during 2006. Refining investments, accounting for most of the downstream budget, are aimed at debottlenecking.
