Independents Noble Affiliates and Kerr McGee Corp. have sharplyincreased their capital investment budgets this year. Kerr-McGee isbudgeting a record $1.24 billion for capital expenditures in 2001,a 60% increase from the company’s 2000 capital expenditures, andNoble’s spending is being increased 40%, with 60% of the $700million being used for developmental projects.

Under Noble’s expanded program, to be funded with discretionarycash flow, the company expects production to increase 10%, with arise in both natural gas and liquids.

The company said it would spend $300 million for Gulf of Mexicoprojects, with its expanded exploration and development of”core-shelf holdings,” and selected deepwater areas. Another $70million will be tagged for domestic onshore E&P. Noble alsoplans to beef up its international projects, and will set aside$240 million for development in China, Israel, Ecuador and theNorth Sea.

Increased gas production will come form several “onshore andGulf of Mexico fields, including recent startups in South Timbalierand Viosca Knoll,” along with other projects in West Cameron, EastCameron, Vermilion, Mississippi Canyon and South Texas.

The Kerr McGee budget for exploration and production in 2001 is$1.03 billion.

“The tremendous success of our exploration and appraisal programhas resulted in three major development projects ongoing in 2001,”said CEO Luke R. Corbett. “Production from the Kerr-McGee-operatedNansen and Boomvang fields in the deep waters of the Gulf of Mexicoand from our 100%-owned Leadon field in the North Sea will fuel a13% increase in oil and gas production volumes in 2002.”

Kerr McGee said $630 million will be allocated to the North Sea,$185 million to the Gulf of Mexico, $55 million to U.S. onshore and$160 million to international projects. The company is alsobudgeting $205 million for worldwide exploration expense, whichshould allow for the drilling of 25 to 30 exploratory wells.Capital expenditures for chemical operations are budgeted at $200million in 2001.

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