As figures are released, KeyFacts Energy will provide an ongoing review of energy company capital expenditure plans for 2024:

Arrow Exploration

Arrow Exploration has approved the 2024 work program, which includes 15 wells and a $45 million net capital budget. The entire capex budget will be financed by current cash reserves and operating cash flow. The 2024 budget focuses on the Tapir block and the development of the Carrizales Norte (CN) field.  

The Company expects to employ two rigs for the entire year on the Tapir block with a third rig being utilized as required.  The capex emphasis is focused on development and infill drilling combined with targeting low-risk exploration prospects.

Athabasca Oil

Athabasca Oil announced its 2024 budget focused on profitable production growth and strong free cash flow generation.

2024 Budget Highlights

• Capital Program: Athabasca is planning capital expenditures of $175 million ($135 million Thermal Oil & $40 million Light Oil) with activity focused on completing the 28,000 bbl/d expansion project at Leismer, sustaining capital at Hangingstone and three Duvernay pads at Kaybob.
• Profitable and Sustainable Growth: The Company plans to grow production to ~37,500 boe/d by year-end 2024, representing ~14% growth from year-end 2023. Annual production guidance is 35,000 – 36,000 boe/d (~98% Liquids). Growth will be weighted to the second half of the year with the Leismer expansion project expected to be completed mid-year and Duvernay production additions into the Fall. 

Capricorn Energy

Capricorn is committed to spend ~ $10m in 2024 comprising up to five non-operated exploration wells, including activity to de-risk the potentially extensive Abu Roash F unconventional play. At this time the Company intends to seek at least a partial deferment of these expenditures into 2025 from EGPC

Cenovus

Cenovus Energy has announced its 2024 budget. Continuing with the growth plan embarked on in 2023, Cenovus expects to invest capital of between $4.5 billion and $5.0 billion in 2024. This investment includes $1.5 billion to $2.0 billion of optimization and growth capital, primarily for progressing the West White Rose project as well as incrementally growing production at the Foster Creek, Christina Lake and Sunrise oil sands facilities. Additionally, Cenovus will implement further initiatives in its downstream business to improve reliability and increase margin capture as well as invest in opportunities in the Conventional business. Approximately $3.0 billion will be directed towards sustaining production and supporting continued safe and reliable operations.

Chevron

Chevron has announced an expected organic capital expenditure range of $15.5 to $16.5 billion for consolidated subsidiaries (capex) and an affiliate capital expenditure (affiliate capex) budget of approx. $3 billion for 2024.

Upstream spending in 2024 is expected to be about $14 billion. Of this planned expenditure, two-thirds is allocated to the United States, including approx. $6.5 billion to develop Chevron’s U.S. shale and tight portfolio, of which around $5 billion is planned for Permian Basin development. About 25 percent of U.S. upstream capex is planned for projects in the Gulf of Mexico, including the Anchor project, which is expected to achieve first oil in 2024.

Downstream capex is expected to be roughly $1.5 billion, with 80 percent allocated to the United States. Corporate and other capex is projected to be about $0.5 billion.

Included in the upstream and downstream budgets is approximately $2 billion in lower carbon capex to lower the carbon intensity of traditional operations and grow new energy business lines. Chevron’s Geismar renewable diesel expansion project is expected to start-up in 2024.

Nearly half of affiliate capex is planned for Tengizchevroil’s FGP / WPMP project in Kazakhstan and about a third is planned for Chevron Phillips Chemical Company, including the Golden Triangle Polymer Project and Ras Laffan Petrochemical Project. WPMP field conversion is forecasted to begin start-up in the first half of 2024.

GeoPark

GeoPark has set a 2024 capital expenditures budget of $150-200 million, with approximately 20-30% to be allocated to exploration and 70-80% to be allocated to the development and delineation of high-potential, short-cycle and near-field projects in the Llanos basin in Colombia and in the Oriente basin in Ecuador.

Harbour Energy

Harbour Energy is expecting an increase in its capital expenditure for 2024, compared to the previous two years, driven by higher investment in the UK and internationally. In 2024, the operator expects a total capital expenditure of c.$1.2 billion, including a lower decommissioning spend of $0.2 billion. The guidance relates to Harbour's current portfolio and excludes any effects or contributions from the proposed acquisition of Wintershall Dea.

Murphy Oil

Murphy Oil's 2024 CAPEX plan is expected to be in the range of $920 million to $1.02 billion. Full year 2024 production is expected to be in the range of 180 to 188 MBOEPD, consisting of approximately 96 MBOPD oil and 106 MBOEPD liquids volumes, equating to 52 percent oil and 58 percent liquids volumes, respectively. This forecast includes approximately 2 MBOEPD of assumed annualized Gulf of Mexico storm downtime and accounts for the 2023 divestiture of 1.5 MBOEPD from non-core onshore Canada assets.

Petrobras

Petrobras has unveiled its Strategic Plan for 2024-2028, under which investments of $102 billion are expected to made. This is a 31% increase over the previous plan. The $102 billion capital expenditure (CAPEX) is split into $91 billion for projects under implementation and $11 billion for projects under evaluation. CAPEX in the Exploration and Production (E&P) segment represents 72% of the total, followed by Refining, Transport and Marketing with 16%, Gas and Energy and Low Carbon with 9% and Corporate with 3%. The $73 billion E&P CAPEX will have 67% allocated to pre-salt projects. Petrobras will allocate $7.5 billion to exploration projects over the five years, with $3.1 billion for exploration in Brazil’s Equatorial Margin; $3.1 billion for exploration in its Southeast Basins; and $1.3 billion to other countries. This investment included the drilling of around 50 wells in areas where the company has exploration rights in acquired blocks. 

Onshore
Approximately $320 million of Murphy’s 2024 CAPEX is allocated to the Eagle Ford Shale, with approximately $240 million designated to drill 30 and bring online 19 operated wells, as well as drill 23 and bring online 18 non-operated wells. The remaining $80 million will support field development.

Murphy plans to spend $130 million of its 2024 CAPEX in Canada onshore. Approximately $65 million is allocated to the Tupper Montney to drill 9 and bring online 13 operated wells, with $35 million allocated to the Kaybob Duvernay to drill 4 and bring online 3 operated wells. The remaining $30 million will support field development in both areas.

Offshore
Murphy plans to spend approximately $300 million of its 2024 CAPEX in the Gulf of Mexico for development drilling and field development projects. This plan includes operated and non-operated subsea tiebacks throughout the year, as well as advancing the non-operated St. Malo waterflood project ahead of its startup in 2024.

Murphy has allocated approximately $25 million of CAPEX to Canada offshore in 2024, with the majority designated for non-operated Hibernia development drilling.

Approximately $45 million of CAPEX has been allocated to other offshore development in 2024, primarily for initial Lac Da Vang field development activities in Vietnam.

Exploration
The company has allocated $120 million to its 2024 exploration program, which includes drilling two exploration wells in Vietnam and two exploration wells in the Gulf of Mexico.

PTTEP

Thai oil and gas firm PTTEP has unveiled its 2024 investment plan and a total budget of around $6.72 billion. Of the total budget, around $4.3 billion is allocated for Capital Expenditure (CAPEX) and around $2.4 billion for Operating Expenditure (OPEX). PTTEP is aiming to maximise production volume from existing assets in Thailand and Malaysia-Thailand Joint Development Area, and other overseas projects to boost Thailand’s energy security. For this, the company has set aside ~$3.2 billion. For exploration activities, PTTEP has allocated $220 million. The funds will be used for geological studies and the drilling of exploration as well as appraisal wells in Thailand, Malaysia, Oman, and the United Arab Emirates. The company is also accelerating key projects’ activities that are in the development phase, such as Lang Lebah field in Malaysia, other development projects in Malaysia, and Mozambique Area 1 Project, to achieve production start-up timelines as planned, with the allocated budget of $762 million for 2024. In 2024, PTTEP plans to invest $109 million in activities aimed at reducing greenhouse gas emissions. 

The company also unveiled a five-year investment plan of $32.57 billion. For the next five years, PTTEP plans to start gas production from Abu Dhabi Offshore 2 Project in 2025 and gas production from Malaysia SK405B Project in 2027. Also, PTTEP expects to start gas production from Lang Lebah field in Malaysia SK410B Project, Liquefied Natural Gas (LNG) production from Mozambique Area 1 Project and crude oil production from phase 2 of Algeria Hassi Bir Rekaiz project by 2028. 

Touchstone Exploration

For 2024, Touchstone's Board of Directors has approved an initial capital budget of $33 million to drill, complete and tie-in six wells, resulting in estimated annualized average daily production between 9,100 boe/d and 9,700 boe/d with a forecasted production mix of 82 percent natural gas and 18 percent crude oil and liquids.

Touchstone's initial 2024 drilling plan includes drilling two legacy property crude oil wells, two Cascadura development wells, one Coho development well and one Coho exploration well. Production growth is expected to be weighted in the fourth quarter of 2024, with two Cascadura wells expected to be drilled in the first half of the year and tied-in to the Cascadura plant prior to the end of the third quarter of 2024. The two Coho wells are expected to be drilled in the fourth quarter of 2024, and production additions from those wells are anticipated in the first quarter of 2025.

Using midpoint forecasted average production of 9,400 boe/d and a Brent Benchmark price of $75.00 for crude oil and liquids, Touchstone expects to generate approximately $32 million of funds flow from operations. Based on the approved capital budget of $33 million, Touchstone is forecasting to exit 2024 with a net debt of $25 million, resulting in a net debt to annual funds flow from operations ratio of 0.78 times.

Statkraft

Statkraft, Europe’s largest renewable energy generator, is planning to invest up to six billion euros in upgrades to its Norwegian hydro and wind power facilities and construction of new onshore wind farms in 2024. 

The investment program will include:

• 1.8 – 3 billion euros in upgrades and transformations of Norwegian hydroelectric power plants.
• 1.2 – 2 billion euros in rehabilitation of dams and modernization of older power plants.
• Around 1 billion euros in renewal of existing and construction of new onshore wind farms.
• 2,500 GWh or more wind power production (more than double the current production).
• 1,500-2,500 MW increased effect in hydroelectric power plants (over 20% increase in installed effect).

Trillion Energy

Trillion is planning the following capital expenditures for the 2024. 

2024 CAPEX Budget (US$MM)

• SASB (Workovers and 5 Sidetrack Wells):  $26
• Oil Block Exploration: $9
• Total Capital Expenditures: $35

Valeura Energy

Valeura Energy has announced plans to invest $8 million in pursuing exploration opportunities within its licenses offshore Thailand, and a total Capex in 2024 of $135 – $155 million. The company has identified exploration opportunities at Wassana North, Nong Yao D, and the Ratree Prospect, located near the Jasmine field. Final drilling sequencing and timing will be determined through ongoing work to optimise the drilling programme around Valeura’s development drilling plans.

KeyFacts Energy: CapEx news