Anadarko Petroleum plans to invest between $4.3 and $4.7bn in 2019 with an objective to increase its oil sales volume by 10% compared to 2018.
Last year, Anadarko Petroleum announced capital investments of $4.2-$4.6bn.
A significant part of the funds allotted under the company’s 2019 capital investment program will be spent on scalable, oil-levered onshore assets in the US. In this connection, the company will invest $3.15bn on the US onshore operations, which represents 70% of the total capital spend.
Anadarko Petroleum expects to operate an average of nearly 15 rigs and 10 completion crews, which will be focused mainly on development work in the Delaware and DJ basins. The firm will spend around $1.4bn to undertake upstream operations in the Delaware Basin of West Texas.
In the DJ Basin of northeast Colorado, the company plans to spend around $1.3bn on upstream operations in 2019. Under this, the company will spend the amount to support continued development of its minerals-interest ownership and also for the Wattenberg field.
In the deepwater Gulf of Mexico operations, the oil and gas company will spend $500m in 2019. It has allocated $200m on its operations in Algeria and Ghana while keeping aside $250m and $200m for its exploration and liquefied natural gas (LNG) operations, respectively.
The LNG investment will be made on the Mozambique LNG project while the exploration investment will focus on the US onshore and satellite opportunities near existing operated facilities located in the deepwater Gulf of Mexico.
The company said that is 2019 capital investment plan is in line with its strategy focused on improving shareholder value by providing attractive margins and returns. Further, it said that the investment plan aligns with its plans of advancing the development of its core assets and creating material free cash flow at current strip prices.
Anadarko chairman and CEO Al Walker said: “Our 2019 investment plan further demonstrates the capital efficiency of our portfolio.
“We believe our peer-leading ability to attractively grow oil volumes within cash flow in a $50 oil environment while delivering significant free cash flow above this break-even point, positions our company very well to execute on our expanded shareholder-return commitments in the near term and in a durable fashion well into the future.”
Earlier this month, Anadarko Petroleum signed a deal to offload almost all its remaining midstream assets to Western Gas Partners (WES), the company’s Delaware Basin-focused master limited partnership, for $4.01bn.