Marathon Oil Announces 2012 CapEx Of $4.82B

Marathon Oil (NYSE: MRO) today said it plans to spent $4.82 billion next year on exploration projects, about two-thirds of which will be focused on the company's liquids-rich, growth assets with almost half of that amount going to the Eagle Ford Shale in South Texas.

The company added it plans to spend 25% of 2012 budget on assets in North America, Africa and Europe.

“Our 2012 capital budget of $4.8 billion highlights our continued focus on the liquids-rich U.S. resource plays that will provide the greatest amount of the Company's projected 5 to 7 percent compound average production growth from 2010 to 2016," said Clarence P. Cazalot Jr., Marathon Oil's chairman, president and CEO, in a statement.

"Approximately two-thirds of our 2012 capital spending next year is allocated to our growth assets, and nearly half of that amount is designated to substantially ramping up our operations in the Eagle Ford shale. A large portion of our planned spending on these growth assets will also allow us to build on our substantial positions in the Bakken and Anadarko Woodford shale plays and continue to establish our business in the emerging Niobrara shale play of the DJ Basin,” Cazalot added.

Marathon plans to spend $900 million on its base E&P assets, $3 billion on growth E&P assets and $430 million selectively investing in a targeted exploration program that includes projects in Gulf of Mexico, the Iraqi Kurdistan Region and Poland.

Marathon has budgeted approximately $275 million for its Oil Sands Mining segment, according to a statement. Marathon holds a 20 percent interest in the Athabasca Oil Sands Project.