Marathon to boost Bakken rig activity by 20%
Marathon Oil Corp. is accelerating its Bakken and Eagle Ford rig activity by 20 percent each, and it plans a 100 percent increase in rig activity for the Oklahoma Woodford, the company said in a Dec. 11 global operations report.
The three domestic plays will capture 60 percent of Marathon’s 2014 $5.9 billion capital, investment and exploration budget, said Lee Tillman, Marathon president and CEO.
Marathon said it will market its North Sea assets to focus on unconventional resources in the United States, as part of its strategic plans for profitable growth and competitive returns for shareholders.
Accelerating rig activity in three of the “highest-value domestic resource plays,” marketing North Sea assets and increasing share repurchases reinforces Marathon’s “strategy of creating long-term shareholder value and a commitment to rigorous portfolio management integrated with robust capital allocation,” Tillman said.
“In the past three years, we have closed or agreed upon nearly $3.5 billion in non-core asset divestitures, surpassing the upper end of our stated $1.5 billion to $3 billion target,” Tillman said.
Marathon plans to spend just over $1 billion in the Bakken, Tillman said, adding that it plans to drill 80-90 net wells (200-220 gross, of which 75-85 are company operated) in the Bakken. The company also plans to re-complete 20-24 existing net wells (22-26 existing gross wells) in the Bakken.
Marathon is allocating $2.3 billion of spending to the Eagle Ford and $236 million to the Woodford.
The company projects a 2014 resource play production growth rate greater than 30 percent relative to 2013, and an overall production growth rate of approximately 4 percent, excluding Alaska, Angola and Libya.
For the period of 2012-17, Marathon projects a resource play production compound annual growth rate greater than 25 percent, and a total production compound annual growth rate of 5 percent to 7 percent.