Noble Energy Inc., Houston, has reduced its 2020 capital expenditure guidance by $500 million and will defer activity in response to the recent commodity price downturn.
The company’s revised 2020 capital expenditures budget of $1.1-1.3 billion is a reduction of nearly 30% from previous guidance. Another $50 million in reductions has been identified through operating and other cash costs.
About 80% of the capital reduction will occur in the US onshore business. More than half of the reductions will occur in the Delaware Basin.
In February, the company noted plans to focus 2020 investment in its contiguous acreage positions in the DJ and Delaware Basins, where it originally expected to spend $1.3 billion of its $1.6-1.8 billion capital budget (OGJ Online, Feb. 12, 2020).
Internationally, the company has identified $100 million in capital reductions coming from major project execution, deferral of non-critical spend into future years, and the exploration program. The company will continue to move forward the Alen gas monetization project in Equatorial Guinea for first production in early 2021 and will complete pipeline expansion work in Israel (OGJ Online, Apr. 2, 2019).
Updated detailed capital, cost, and sales volume guidance for 2020 will be released with the company’s first quarter results.