During the first quarter of 2023, KeyFacts Energy will provide an 'at-a-glance' weekly update on energy company capital expenditure plans.

Chevron

Chevron plans to spend $17 billion in 2023, up from about $15 billion in 2022.

Chevron’s breakdown for its 2023 budget includes $11.5 billion dedicated to its upstream operations and another $1.9 billion allocated to its downstream business. Additionally, the company has budgeted $2.9 billion in affiliate CAPEX, with nearly half of it going toward its Tengizchevroil’s FGP/WPMP Project in Kazakhstan.

Expenditure includes more than $4 billion for Permian Basin development and roughly $2 billion for other shale and tight assets. More than 20% of the upstream CapEx is for the company’s Gulf of Mexico projects.

The budget also includes about $2 billion to projects that reduce carbon emissions, with about $500 million to projects that lower the carbon intensity of Chevron’s traditional operations and about $1.5 billion to increase renewable fuels production capacity.

CNOOC

CNOOC report capital expenditure will rise to between 100 billion ($14 billion) and 110 billion yuan in 2023, from 100 billion yuan in 2022, to fund an increase in output to between 650 million and 660 million barrels of oil equivalent. Cnooc produced 620 million barrels last year.

Europa Oil & Gas

The Europa Board has approved a 2023 budget which includes net committed capex of £5.1 million across the asset base. The Company has a forecast net cash position of £4.6 million at 31 January 2023. In addition, it forecasts that it will generate £4.2 million in free cash flow during 2023 (pre-capex). 

ExxonMobil

ExxonMobil reported its corporate plan through 2027 maintains annual capital expenditures between $20 billion and $25 billion, with about $17 billion planned for lower-emission initiatives. The plan is expected to double earnings and cash flow potential by 2027 vs. 2019 and supports the company’s strategic priorities.

The company's 2023 investments are expected to range between $23 billion and $25 billion to help increase supply to meet global demand.

Genel

Genel plan a material reduction in capital expenditure, with 2023 expenditure expected to be between $100 million and $125 million, with key asset spend including: 

• Production business cost recoverable capital expenditure roughly flat at c.$90 million 
• Up to c.$25 million expenditure in Somaliland, as we progress towards the spudding of the Toosan-1 well in this frontier basin
• c.$10 million currently expected on maintenance of other assets including Sarta, a reduction of c.$50 million on 2022

Harbour Energy

• Total capital expenditure of c.$1.1 billion, including c.$0.2 billion decommissioning, split 85 per cent UK / 15 per cent international.
• UK capital expenditure focused on high return, lower risk, infrastructure-led investment opportunities including Tolmount East and Talbot development drilling, Callanish F6 infill well, Leverett appraisal and the Jocelyn South exploration well.
• Total UK capital expenditure reduced compared to previous expectations with certain opportunities no longer being pursued following the changes to the EPL announced in November, including the Total-operated EIH well at Elgin Franklin and participation in the 33rd Licensing round.
• International capital expenditure largely comprised of further exploration drilling across our Andaman Sea licences.

Hess

Hess Corporation announced a 2023 Exploration & Production capital and exploratory budget of $3.7 billion, of which more than 80% will be allocated to Guyana and the Bakken.

Net production is forecast to average between 355,000 and 365,000 barrels of oil equivalent per day in 2023. Bakken net production is forecast to average between 165,000 and 170,000 barrels of oil equivalent per day and Guyana net production is forecast to average approximately 100,000 barrels of oil per day in 2023(1).

The $3.7 billion budget is allocated as follows: $1.45 billion (39%) for production, $1.7 billion (46%) for offshore Guyana developments and $550 million (15%) for exploration and appraisal activities.

i3 Energy

i3 Energy's 2023 Capital Budget of USD 64.05 million is, forecast to deliver 23 gross wells (15.2 net, 70% net i3-operated) to be drilled across the Company’s diversified portfolio in Central Alberta, Simonette, Wapiti and its northern Clearwater acreage.

Forecast 2023 annual average production of 22,250 – 23,000 boepd, represents a year-over-year increase of approximately 10% – 13%, with an expected 2023 peak production rate of approximately 26,000 boepd.

Murphy Oil

Murphy Oil's 2023 CAPEX plan is expected to be in the range of $875 million to $1.025 billion. Full year 2023 production is expected to be in the range of 175.5 to 183.5 MBOEPD, consisting of approximately 99 MBOPD oil and 109 MBOEPD liquids volumes, equating to 55 percent oil and 61 percent liquids volumes, respectively. This reflects a 10 percent increase in oil volumes and 7 percent increase in total volumes from full year 2022.

Murphy plans to spend approximately $335 million of 2023 CAPEX in the Gulf of Mexico for development drilling and field development projects, including executing three operated subsea tiebacks and three non-operated subsea tiebacks, and advancing the non-operated St. Malo waterflood project prior to its completion in early 2024.

Murphy has allocated $325 million of 2023 CAPEX to the Eagle Ford Shale. This includes $250 million to drill 25 wells and bring online 35 operated wells, as well as drill 11 wells and bring online 17 non-operated wells. The remaining $75 million is allotted to support field development.

The company plans to spend $130 million of its 2023 CAPEX in Canada onshore. Approximately $100 million is allocated to the Tupper Montney to drill 14 wells and bring online 16 operated wells, and the remaining $30 million supports field development in Tupper Montney and Kaybob Duvernay.

Approximately $30 million of CAPEX is allocated to Canada offshore, with $18 million for non-operated Hibernia development drilling, as well as $12 million for non-operated Terra Nova for field development ahead of returning to production in the second quarter 2023.

Murphy has allocated $100 million to its 2023 exploration program, with the majority of spending designated for drilling operated exploration wells in the Gulf of Mexico.

Parex

Capital expenditures set at approximately $450 million (midpoint), which is roughly 18% lower compared to 2022. This demonstrates the Company’s commitment to capital discipline in a lower netback environment, while ensuring strong free funds flow generation that is to be returned to shareholders.

Approximately 75% of total capital is focused on investments in operated blocks, with balanced deployment across multiple areas and basins as the Company further diversifies its operations from Southern Llanos Blocks LLA-34 and Cabrestero.

Average production is expected to be between 57,000 to 63,000 boe/d, and forecast to be approximately 15% year-over-year absolute growth (midpoint).

Capital plan includes the spudding of three big ‘E’ wells (Blocks: Arauca, VIM-43 and LLA-122) that have the potential to be transformational opportunities for the Company.

Approximately $45 million of capital expenditures relate to carry capital from the Arauca and LLA-38 farm-in agreement with Ecopetrol S.A., whereby Parex agreed to solely fund the initial work plan in exchange for proved reserves along with development and drill-ready exploration prospects.

PGS

PGS expects full year 2023 gross cash costs to be approximately $550 million. The increase from 2022 is primarily due to the higher activity level and more capacity in operation.

2023 MultiClient cash investments are expected to be approximately $160 million.

Tullow Oil

In 2023, Tullow plans to invest c.$400million, of which c.$300 million in Ghana (primarily in Jubilee, including over $100 million in infrastructure), c.$40 million in Gabon, c.$20 million in Côte d’Ivoire, c.$10 million in Kenya and c.$30 million on exploration and appraisal activities. This is an increase of c.$50 million compared to 2022 as a consequence of deferrals from 2022, increased equity in Ghana for the full year, and ongoing infrastructure investment in Jubilee South East, which will account for c.40% of Ghana capital spend in 2023.

Decommissioning expenditure is expected to be c.$90 million in the UK and Mauritania, including deferrals from 2022, with less than $30 million of decommissioning liabilities in the UK and Mauritania remaining at the end of 2023. Additionally, starting in 2023, c.$30 million is expected to be paid annually into escrow for future decommissioning of currently producing assets in Ghana and parts of the non-operated portfolio.

Capital investment in 2023, in particular in Ghana, is expected to support production growth through to 2025 and free cash flow generation of $700-800 million at 80/bbl for the two years 2024 and 2025 based on 2P reserves only, which will further reduce net debt and strengthen Tullow’s balance sheet.

United Oil & Gas

Group cash capital expenditure for the full year is forecasted to be approx. $4.4m, funded from existing operations, with circa $4m to be invested in Egypt and up to $0.4m across the other assets in the portfolio.

KeyFacts Energy: CapEx news

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