Oil and gas companies continue to report their capital spending plans for 2008. Some of the latest include:
- ConocoPhillips approved a 2008 capital budget of $14.3 billion, including cash capital expenditures and capitalized interest.
- Talisman Energy Inc. plans to spend $4.4 billion on exploration and development in 2008, down from an estimated $4.6 billion in 2007.
- Encore Acquisition Co. plans a $445 million capital budget for its 2008 drilling and development program compared with a $370 million drilling and development budget for 2007.
- TXCO Resources Inc. approved a $100-110 million capital expenditure budget and drilling program for 2008 compared with a $72.4 million budget for 2007.
In other recent company news:
- Gaz de France and Qatar Petroleum International signed a partnership agreement in Doha that lays out the development of cooperation between the two groups at an international level in exploration, production, LNG, gas storage, and downstream activities.
ConocoPhillips
ConocoPhillips’s 2008 budget compares with a $12.3 billion for 2007, including $500,000 of capitalized interest.
Loans to affiliates and contributions to fund a heavy oil joint venture with EnCana Corp. added another $1 billion, bringing the total authorized 2008 capital program to $15.3 billion.
The exploration and production budget is expected to be $12 billion, including capitalized interest and loans to affiliates and contributions to the upstream venture with EnCana. Another $2.8 billion was allocated for refining and marketing.
Talisman
Talisman forecast 2008 production will average at least 435,000 boe/d. Production could be higher depending upon the completion of commissioning of Tweedsmuir oil field in the North Sea. Commissioning is under way.
Talisman said its 2008 budget involves more investment in Southeast Asia and Norway while it plans to reduce spending on UK development projects, reflecting the completion of a number of projects in 2007.
The company also plans to reduce spending in the US and Canada because of uncertainty in natural gas prices. But the US and Canada still will account for more than one third of total spending, Talisman said.
Encore Acquisition
This year Encore Acquisition plans to spend $347 million on drilling, $67 million on improved oil recovery and workovers, and $31 million on land, seismic, and other expenses.
The company, based in Fort Worth, plans to spend $164 million in the Rockies, $140 million in West Texas, $102 million in the Midcontinent, and $39 million in its New Mexico region.
Jon S. Brumley, EnCore Acquisition president and chief executive officer, said the 2008 budget represents lower risk than did the 2007 budget because the company has refined its focus on long-life oil field enhancement.
TXCO Resources
Formerly known as Exploration Co., TXCO of San Antonio noted that the budget could be revised based on drilling changes by partners, rig availability, drilling results, unanticipated transactions, and market fluctuations.
The Glen Rose formation, including the Maverick basin’s prolific Porosity oil play, is slated to receive the largest share of the budget—about $40.7 million for 35 wells, including 10 reentries.
Texas Fort Trinidad field in East Texas is slated for $12.5 million for 10 wells targeting TXCO’s Glen Rose B shoal gas play.
GDF, QPI deal
As the leading LNG importer in Europe, GDF is keen to enhance its presence in Qatar and develop cooperation “with the world’s top LNG exporter,” while Qatar wants to develop its access to different markets, particularly by investing in regasification terminals and gas storage sites.
With the forthcoming merger of GDF and Suez, Qatar will have access to a group that is among the leading LNG operators worldwide and, therefore, on a large number of markets.
