UPDATE 1-Anadarko expects oil sales volumes to rise 25 pct

March 7 (Reuters) - Anadarko Petroleum Corp (APC.N) said on Tuesday it expected a 25 percent rise in oil sales volumes in 2017 and that it would boost its capital budget to focus on higher-margin oil production.

The company forecast initial capital budget of $4.5 billion to $4.7 billion for the current year, compared with $3.31 billion in 2016.

Anadarko announced the sale of its Eagleford shale assets in South Texas for about $2.3 billion in January to focus on more high-return properties such as Texas' Delaware Basin, the DJ Basin in Colorado and the deepwater Gulf of Mexico.

"Our 2017 initial capital program is designed to leverage our streamlined portfolio and sharpened focus on higher-margin oil production, which is expected to generate stronger returns and substantial cash flow," Chief Executive Al Walker said.

About 80 percent of the total capital program will be used to fund U.S. onshore upstream and midstream activities and the company's expanded position in the deepwater Gulf of Mexico, Walker said.

Anadarko said it expected an 80 percent jump in the rate of production from the Delaware Basin, which is situated in the larger Permian Basin, and a 30 percent increase from the DJ Basin in 2017.

The company plans to invest about $1.1 billion in its deepwater Gulf of Mexico, Algeria and Ghana assets.

Houston-based Anadarko expects to sell between 357,000 to 362,000 bopd in 2017, compared with 287,000 barrels of oil per day (bopd) a year earlier.