USX Corp. has approved a 2001 Marathon Group capital, investment and exploration budget of $1.8 billion. This is an increase of 9 percent over the actual spend of $1.64 billion for the previous year.
The budget does not include an additional $500 million earmarked for the acquisition of Pennaco Energy, Inc., announced December 22.
The Group's capital and investment program of $1.5 billion is 12 percent higher than in 2000. It includes $762 million for production activities, $641 million for refining, marketing and transportation and $87 million for corporate administration and other energy related businesses.
The worldwide exploration program for 2001 amounts to $309 million compared to $314 million in 2000. Approximately $194 million, or 63 percent, is allocated to U.S. domestic exploration programs, with the major emphasis on the Gulf of Mexico.
The balance of $115 million, or 37 percent is allocated to international drilling projects offshore Angola, the North Sea and both onshore and offshore Canada.
For U.S. Domestic operations, upstream capital spending plans total $508 million spread across numerous projects. The corresponding spending level for 2000 was $417 million.
Internationally, upstream capital and investment plans total $254 million compared to $217 million in 2000.
Around $80 million of this is allocated to the continuing development of the Foinaven area of the UK Atlantic Margin.
Marathon acquired an interest in this location through the exchange of its Sakhalin interests with Shell Oil in the fourth quarter of 2000.
© 2001 Mena Report (www.menareport.com)
