Oil major Total said yesterday it was increasing its global capital spending to £15billion in 2012, up from £12.9billion last year.
The French giant added that the increase in investment would be 80%-focused on the upstream business and include a 20% increase in exploration spending, to £1.5billion.
Total also reported an 11% rise in adjusted annual profits to £9.5billion as a result of higher oil prices.
Its downstream operation saw refinery output decline 7% last year, however, after a sale of part of the business and higher turnaround activity.
Total said there was an unfavourable economic environment for refining, affecting Europe in particular. This saw downstream business operating profits drop 7% to just over £906million.
Production was down 1.3% for the year, with increased output offset by disruptions in Libya and normal decline, Total said.
Looking forward, the group said 2012 would be a year of accelerated production and profits growth.
Projects in Nigeria, Angola and Thailand are expected to help production grow by 2.5% a year on average between 2010 and 2015.