Unocal Corp. expects capital expenditures by its subsidiaries to total $1.93 billion in 2004. The investment plan is up $270 million over last year.
About $325 million will go toward exploration, which will focus on the deepwater Gulf of Mexico and Indonesia. Exploration spending on the deep shelf program in the GoM represents about 10% of the overall spending plan and will be less than one-half of the 2003 level.
Nearly half of the estimated spending (about $930 million) is earmarked for large international oil and gas development projects that are expected to bring on new production in 2004 and 2005.
Major international projects include Thailand oil and gas development, Indonesia deepwater development, Bangladesh gas field development, Caspian Sea oil development (including the export pipeline), and China's Xihu Trough natural gas development.
In the US, Unocal will complete development of the Mad Dog field and will begin development of the K2 field in the deepwater Gulf of Mexico.
About 94% of the total capital spending plan is for exploration and production projects, with about two-thirds targeted for outside North America.