Chevron Corporation, a California-based multinational energy corporation, has announced a 2019 organic capital and exploratory spending programme of US$20bn
This will include US$7.6bn for upstream projects in the US and US$9.7bn for upstream projects internationally, it added.
Chairman and CEO Michael K. Wirth, commented, “Our 2019 budget supports a robust portfolio of upstream and downstream investments, highlighted by our world-class Permian Basin position, additional shale and tight development in other basins and our major capital project at TCO in Kazakhstan.”
“Our investments are anchored in high-return short-cycle projects, with more than two-thirds of spend projected to realise cash flow within two years,” he added.
“We expect to continue to deliver steady production growth, enabling continued free cash flow that underpins our strong dividend and shares repurchase programme,” he explained.
Details of the 2019 capital and exploratory spending programme include:
In the upstream business, the company said that it would spend US$10.4bn to sustain and grow currently producing assets. It also plans to spend US$3.6bn on Permian and US$1.6bn for other shale and tight investments.
It stated that US$5.1bn of the upstream programme is planned for major capital projects, including US$4.3bn associated with the Future Growth Project at the Tengiz field in Kazakhstan.
Chevron’s global exploration funding is expected to be around US$1.3bn. The remainder of the upstream spend will be for early-stage projects supporting potential future developments.
In addition, the planned capital expenditure of US$2.5bn is linked to the company’s downstream businesses that refine, market and transport fuels and manufacture and distribute lubricants, additives and petrochemicals.