BNSF approves $5 B capital commitment program

BNSF Railway Co. (BNSF) has approved a new single-year record capital commitment plan of $5 billion for 2014, a $1 billion increase over its 2013 capital spend.

The largest component of the capital plan is spending $2.3 billion on BNSF’s core network and related assets. BNSF also plans to spend $1.6 billion on locomotive, freight car, and other equipment acquisitions. In addition, the program includes about $200 million for continued installation of positive train control (PTC) and $900 million for terminal, line, and intermodal expansion and efficiency projects.

BNSF handled more than 50% of the volume increases for the rail industry in 2013. The growth was led by an 8% increase in domestic intermodal units, an 11% increase in industrial product volumes led by crude-by-rail traffic, a 3% increase in coal volumes, and a fourth-quarter surge in agricultural products. This growth is on top of a 2012 BNSF total volume base of more than 9.6 million units. Much of the capacity expansion in the 2014 capital plan is for infrastructure investment on BNSF’s Northern Corridor to put the company in position to meet all customer service expectations, including Amtrak.

BNSF’s expansion and efficiency projects will be primarily focused on line capacity improvements to accommodate growth in agricultural products, intermodal, automotive, and industrial products volumes related to crude oil production, and other terminal improvements to enhance productivity and velocity. More than $900 million of the capital plan is for expansion and maintenance in the Northern Corridor.

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Statoil targets mid-year restart for Njord production platform offshore Norway

Offshore staff

ABERDEEN, UK -- This summer Statoil expects to complete reinforcement of the deck of the Njord A semisubmersible platform in the Norwegian Sea.

Production and drilling operations on the Njord field and the satellite Hyme field were suspended last year following concerns over the deck’s structural integrity.

Once complete, production will re-start from both fields.  But due to continued weight restrictions, Njord A will remain without a drilling facility unless further strengthening is done.

Partner Faroe Petroleum says a further 170 MMboe of resources could be developed in the Njord area, via  a combination of production from the field’s existing wells, further in-fill drilling on Njord, and development of the North West Flank rich gas and condensate accumulations and the recent Snilehorn oil discovery.

At the Brage field in the Norwegian North Sea (Faroe 14.26%), Wintershall succeeded Statoil as operator last October, and is currently assessing infill drilling targets. Two new production wells are under way and should come onstream this spring and fall.

2/6/14

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