March 7 Anadarko Petroleum Corp said on
Tuesday it expected a 25 percent rise in oil sales volumes in
2017 and that it would boost its capital budget to focus on
higher-margin oil production.
The company forecast initial capital budget of $4.5 billion
to $4.7 billion for the current year, compared with $3.31
billion in 2016.
Anadarko announced the sale of its Eagleford shale assets in
South Texas for about $2.3 billion in January to focus on more
high-return properties such as Texas' Delaware Basin, the DJ
Basin in Colorado and the deepwater Gulf of Mexico.
"Our 2017 initial capital program is designed to leverage
our streamlined portfolio and sharpened focus on higher-margin
oil production, which is expected to generate stronger returns
and substantial cash flow," Chief Executive Al Walker said.
About 80 percent of the total capital program will be used
to fund U.S. onshore upstream and midstream activities and the
company's expanded position in the deepwater Gulf of Mexico,
Anadarko said it expected an 80 percent jump in the rate of
production from the Delaware Basin, which is situated in the
larger Permian Basin, and a 30 percent increase from the DJ
Basin in 2017.
The company plans to invest about $1.1 billion in its
deepwater Gulf of Mexico, Algeria and Ghana assets.
Houston-based Anadarko expects to sell between 357,000 to
362,000 bopd in 2017, compared with 287,000 barrels of oil per
day (bopd) a year earlier.
Shares of the company were down 1.84 percent at $62 in
(Reporting by Vishaka George in Bengaluru; Editing by Anil