USA: Noble Energy’s Capex to Hit USD 5 Billion in 2016

Noble Energy to Ramp Up Capex to USD 5 Billion in 2016

Noble Energy, Inc. today announced that it has increased its 5 year capital spending plan as a result of recent exploration successes in order to strengthen the company’s growth profile.

The Company’s production is projected to increase at a compound annual growth rate of 17 percent over the next five years, resulting in average daily production of 490 thousand barrels of oil equivalent per day (MBoe/d) in 2016

All five core areas are expected to deliver strong annual average production growth over the next five years.

Major onshore and offshore projects are expected to deliver production of 340 MBoe/d and operating cash flow of $5 billion in 2016.

Oil production has commenced at Aseng in Block I offshore Equatorial Guinea nearly seven months ahead of the original schedule and is currently producing 50 thousand barrels per day (MBbl/d) gross

Net production from the Company’s horizontal Niobrara development program in the DJ Basin is currently at 14 MBoe/d and is projected to reach 70 MBoe/d by 2016

As a result of an expanded portfolio of high-return reinvestment opportunities, annual capital spending over the next five years is expected to ramp up from the current level of $3 billion to $5 billion in 2016

The Company’s total proven reserves are projected to grow at a compound annual rate of 20 percent from year-end 2010 to a total of 2.7 billion barrels of oil equivalent (BBoe) by the end of 2015

Net risked resources have increased 75 percent since 2010 to 7.4 BBoe

The Company and its partners have made an additional oil discovery at the Carla prospect in Block O offshore Equatorial Guinea which is estimated to contain gross resources of 35 to 100 million barrels of oil equivalent (MMBoe) with 80 percent liquids.

Charles D. Davidson, Noble Energy’s Chairman and CEO said, ” We have increased our five-year capital spending plans as a result of recent exploration discoveries, success in the DJ Niobrara, and the addition of our Marcellus program. The increased capital investment is expected to add substantial value and further strengthen our growth profile with production growth now expected to average above 10 percent per year over the next decade. On a debt-adjusted per share basis, we project proven reserves, production and discretionary cash flow(1) to grow over the next five years at double-digit compound growth rates and at rates significantly above the projections we made at our 2010 analyst conference.”

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Offshore Energy Today Staff , November 15, 2011