Noble looks to DJ, Delaware and offshore for 2020 oil, gas effort

By Luke Geiver | February 18, 2020

While Noble Energy continues to invest in its offshore oil and gas efforts, the exploration and production entity will continue to prioritize efforts in the DJ and Delaware Basins.

Those efforts will focus on free cash flow generation and capital discipline over onshore growth, according to David Stover, Noble’s CEO.  “In our onshore business in 2019, we materially lowered maintenance capital needs through sustainable drilling and completion cost reductions, and we anticipate even further capital efficiency gains as we focus 2020 investment in our large contiguous acreage positions in the DJ and Delaware Basins,” Stover said.

Noble intends to spend nearly $1.8 billion this year across both offshore and onshore projects. In the DJ and Delaware, Noble will invest $1.3 billion of the total. Across the Delaware, a range of 50 to 60 new wells will be drilled and completed this year, with another 120 new wells drilled and completed in the DJ. The Eagle Ford, however, will see no new activity.

According to the company, as compared to 2019, average well costs in each of the DJ and Delaware Basins are expected to be down approximately 10 percent. Included in Delaware Basin capital for 2020 is an estimated $35 million for linefill associated with the EPIC Crude Pipeline startup expected in the first quarter of the year. Approximately 60 percent of the company’s U.S. onshore capital program is targeted for the first half of the year.

In addition to a long-running operation in offshore Equatorial Guinea and Cameroon near West Africa, Noble also has an operation in the Eastern Mediterranean called Leviathan.