Anadarko Petroleum (ticker: APC) released its 2018 capital expectations and guidance. According to the company’s press release, out of the company’s $4.2-4.6 billion dollar budget, approximately 80 percent will be directed towards the Delaware and DJ basins, as well as the Gulf of Mexico. The remaining budget will be spent on international operations, exploration and LNG development.
Spending in the Delaware Basin, DJ Basin, and Gulf of Mexico
The company plans to allocate approximately $900 million toward upstream activities in the Delaware basin of West Texas, with an additional $500 million directed toward Anadarko midstream investments. The investments will enable Anadarko to build one of the most expansive and integrated infrastructure positions in the basin.
Additionally, Anadarko continues to progress the construction of three regional oil treating facilities to support its more cost-effective and environmentally beneficial tankless battery design field-wide, while also securing necessary gathering, processing, and takeaway capacity. During 2018, the company plans to average seven operated rigs and six completion crews.
Source: Anadarko Petroleum Corporation
Anadarko plans to invest approximately $950 million on upstream activities in the DJ basin of northeast Colorado. In this basin the company plans to have five operated rigs and three completion crews.
In addition to the investments in the Delaware and DJ basin, the company also plans to allocate approximately $1.1 billion towards operations in the Gulf of Mexico. These investments will also directed toward upstream development opportunities near the pre-existing operated infrastructure in Lucius, Horn Mountain, Marlin, Holstein and Marco Polo. The company plans to operate two floating drillships and spud approximately five development wells in the Gulf during the year.
Source: Anadarko Petroleum Corporation
International Operations, Exploration and LNG
Anadarko plans to invest roughly $150 million toward international cash-generating operations in Algeria and Ghana in 2018. After the Ghanaian Government recently approved the Jubilee field for full-field development, Anadarko will invest in drilling operations in the area. Anadarko will spend the rest of the 150 million to support further drilling operation in the Tweneboa, Enyenra, Ntomme (TEN) development area.
Exploration
According to the press release, Anadarko is planning to spend $200 million for exploration in 2018. This budget will be primarily focused on the Gulf of Mexico. The remaining budget for exploration will be spent on U.S. onshore.
Anadarko plans to continue advancements for Mozambique LNG project by investing approximately $150 million in 2018. The investment will be primarily directed towards the costs associated with preparing the site of the future LNG park.
Source: Anadarko Petroleum Corporation
