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Image courtesy of Anadarko Petroleum.

Anadarko Petroleum said Tuesday that it will cut its 2016 capital budget in half this year as it slashes its U.S. rig count.

The Houston-based company has reduced its year-over-year capital investments by almost 50 percent to between $2.6 billion to $2.8 billion.

Anadarko’s U.S. onshore activities will see the biggest reduction this year with that area’s budget being cut by nearly $2.5 billion year-over year to $1.1 billion.

The company will reduce its U.S. onshore rig count by 80 percent to five operated rigs, down from an average of 25 in 2015, while focusing on base production and “retaining flexibility” to leverage its inventory of about 230 drilled but intentionally uncompleted wells.

Anadarko has earmarked $700 million for its activities in the Gulf of Mexico where the company intends to focus on its capital-efficient tieback oil opportunities and on advancing appraisal activities.

The company will allocate another $700 million for its international activities that will include efforts to advance its Paon oil discovery in offshore Côte d’Ivoire toward potential development with one appraisal well, a drillstem test and two exploration wells.

Anadarko said once its activities in Côte d’Ivoire are complete, its rig is scheduled to return to Colombia to conduct additional exploration drilling activities.

The company also expects to achieve first oil at the TEN complex in offshore Ghana in the third quarter of 2016.

Anadarko added that it “expects minimal funding in 2016” as it works “three parallel paths toward a Final Investment Decision”  for its Mozambique LNG project.

The company also announced plans to monetize up to $3 billion of assets in 2016, with $1.3 billion in monetizations announced or closed year to date.

Adjusted for divestitures, Anadarko expects its total 2016 sales volumes to be between 282 to 286 million barrels of oil equivalent, down from 292 million barrels in 2015.

The company expects oil sales volumes to account for 308,000 313,000 barrels per day.

Last month, Anadarko cut its quarterly dividend on its common stocks to $0.05 per share, down $0.22 per share from prior levels.

The company expects the dividend reduction to provide $450 million of additional cash.

“In 2016, we will continue our disciplined and focused approach, preserving and building value by leveraging our best-in-class capital allocation, enhancing operational efficiencies and continuing an active monetization program,” Anadarko chairman, president and CEO Al Walker said.