Anadarko raises capital budget as oil prices rise

Anadarko Petroleum Corp. said  it plans to hike capital spending by more than a third this year, with the bulk of its $4.5 billion budget headed for U.S. oil fields.

The Woodlands-based driller expects to bolster oil sales by a quarter this year as it sends more rigs to the Delaware Basin in West Texas and the DJ Basin in Colorado. The company plans to spend a combined $1.7 billion on its upstream businesses in those regions.

Drilling faster there should “deliver significant oil growth toward the end of the year as we overcome the effects of last year’s reduced activity levels,” Anadarko CEO Al Walker said in a written statement.

About $1.1 billion, the company said, will go to offshore fields in the deep-water Gulf of Mexico region, and in Algeria and Ghana. It plans to drill seven wells in the Gulf as it develops the fields it acquired from Freeport-McMoRan last year.