Exxon Mobile plans $100m-a-day spend on capital projects
Published 10/03/2011 | 05:00
Exxon Mobil, the world's biggest company by market value, plans to spend $100m (€72m) a day for the next half-decade on capital projects such as new oil wells and natural-gas plants.
Exxon has budgeted $34bn for capital projects this year, a 5.6pc increase from 2010, chief executive officer Rex Tillerson said yesterday at an analyst meeting in New York. The budget will range from $33bn to $37bn through 2015, according to a slide presentation prepared for the meeting.
Exxon expects to boost oil and gas production by 3pc to 4pc this year, the company said. Eleven new projects are scheduled to begin pumping oil or gas between now and 2013.
Exxon is spending more as the company expands its search for untapped oil and gas fields, and upgrades refining and chemical plants in Asia to supply the world's fastest-growing energy markets. Production rose 13pc last year, the largest annual increase since Exxon's 1999 acquisition of Mobil Corp.
Oil prices reached a 29-month high this week amid unrest in the Middle East.
"We are executing a large inventory of high-quality projects," Mr Tillerson said yesterday. "Actual spending in a given year will vary depending on the pace and the progress of each project."
About 80pc of production from new wells between now and 2016 will consist of crude oil, the company said. Exxon's exploration prospects range from Madagascar to Greenland to Vietnam.
Exxon shares fell 84 cents to $83.76 at 9.57am in composite trading on the New York Stock Exchange.
Exxon, which traces its roots to the 1880s and John D Rockefeller's Standard Oil Trust, earned $15.50 in profit on each barrel of crude it produced in 2010, Mr Tillerson said yesterday at the New York Stock Exchange.
Exxon is awaiting US regulatory approval to drill two wells at its deep-water Hadrian discovery in the Gulf of Mexico, the company said. (Bloomberg)