Dec. 00 - Murphy increases 2001 CAPEX by 18%

Source Press Release
Company Murphy Oil Corporation 
Tags Strategy - Corporate
Date December 07, 2000

Murphy Oil Corporation has announced a capital program of $692 million for 2001. This represents an increase of 18% compared to projected capital expenditures in 2000.

Approximately three-quarters of the capital budget will be allocated to upstream operations. Murphy’s development expenditures are expected to rise 41% to $280 million, primarily driven by activity surrounding deepwater Gulf of Mexico discoveries in Mississippi Canyon Blocks 538/582 (Medusa, 60%) and Garden Banks Block 341 (Habanero, 33.8%), both to commence production in late 2002.

 Funds will also be provided to begin the Phase III expansion at  Syncrude and for continuing development of Hibernia, heavy oil and natural gas fields in western Canada and Block 16 in Ecuador. Exploration expenditures are estimated to rise approximately 12% to $238 million. In addition to a continuation of the Gulf of Mexico deepwater program, an expanded drilling program in western Canada, enhanced by properties received in the recent Beau Canada acquisition, will be pursued. Also planned are several wells for the natural gas prone Scotian Shelf as well as increased levels of drilling offshore Malaysia.

 Capital expenditures for refining, marketing and transportation operations are budgeted at $168 million in 2001, up approximately 7%. The primary uses of the funds are for the ongoing Wal-Mart program and for the commencement of a “clean fuels” project at the Meraux, Louisiana refinery. Approximately 300 low-cost, high-volume U.S. retail gasoline stations, located primarily in the parking areas of Wal-Mart Supercenters, will be in operation or under construction by the end of 2000, with an additional 100-125 planned for construction in 2001.

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd