Noble Energy targets U.S. onshore growth in 2020 capital budget

By Cameron Wallace on 2/12/2020

HOUSTON – Noble Energy will take advantage of offshore cash flow to focus on drilling in the DJ and Delaware basins in the U.S., as part of the company’s capital expenditure and production outlook for 2020.

David L. Stover, Noble’s chairman and CEO credited the company’s low cost of supply portfolio with making the shift possible, saying “In our onshore business in 2019, we materially lowered maintenance capital needs through sustainable drilling and completion cost reductions, and we anticipate even further capital efficiency gains as we focus 2020 investment in our large contiguous acreage positions in the DJ and Delaware basins.”

Noble’s 2020 capital program stands between $1.6 and $1.8 billion, A 31% reduction from the previous year. The U.S. program is planned at $1.3 billion, with 60% dedicated to the DJ basin, and 40% to the Delaware basin. The DJ basin will see 110 to 120 wells drilled and completed in 2020, with an additional 50 to 60 wells added in the Delaware. The company anticipates well costs in these areas to average 10% lower than 2019. Included in these funds is $35 million for linefill associated with the EPIC Crude Pipeline, due to start in the first quarter of the year.

Offshore development spending for 2020 will come in lower than the previous year, as Noble concludes development of the Leviathan project offshore Israel. Approximately $275 million is allocated for offshore development, the majority of which is earmarked to progress natural gas monetization at the Alen project in Equatorial Guinea.

 

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