Noble Energy: Capex cut 40 pct. Focus on shale
Noble Energy has today said it will reduce its capital expenditure for 2015 by around 40%. The company’s total capital expenditure for 2014 year was $4.88 billion.
The U.S.-based oil firm has earmarked $2.9 billion for expenditure this year, 35% of which will be spent on global offshore development activities, and 5 percent on offshore exploration. The majority of planned 2015 capex – 60%, or $1.8 billion – will go on the company’s North American onshore unconventionals, split relatively evenly between the DJ Basin and Marcellus Shale.
As for the offshore plans, around $600 million will be invested in the continued development of the company’s sanctioned Gulf of Mexico projects.
Investment will be focused on subsea pipeline installation at Big Bend and Dantzler and drilling and completion operations at Gunflint.
Expenditures in West Africa are primarily associated with the non-operated Alba compression project, offshore Equatorial Guinea, which is targeted for startup in 2016. In addition, the company will be drilling the Cheetah oil prospect, offshore Cameroon, in the middle part of 2015.
The company today reported its fourth quarter net income for 2014 was $402 million, up from $134 million in the same quarter a year ago.