US oil major Chevron announced a US$26 billion capital and exploratory spending programme for 2011.
“We have an unparalleled set of opportunities,” said chairman and CEO John Watson. “Our previous investments have performed well, giving us the cash and financial strength to fund numerous attractive projects in rapid succession. We’re building legacy asset positions which will reward shareholders for decades to come. “At the same time, we are committed and able to reward shareholders with competitive dividend growth and share repurchases.”
Approximately 85% of the 2011 spending programme is for upstream oil and gas exploration and production projects worldwide. Another 10% is associated with the company’s downstream businesses that manufacture, transport and sell gasoline, diesel fuel and other refined products, fuel and lubricant additives, and petrochemicals.
Upstream
The spending of $22.6 billion is planned for exploration and production activities, including major natural gas-related projects, said the company. Major capital investments include development of natural gas resources in Western Australia and development opportunities in the deepwater US Gulf of Mexico, Western Africa and the Gulf of Thailand. Funding is planned for focused exploration and appraisal programmes in core hydrocarbon basins. Capital spending will also be directed towards existing assets throughout the world to improve oil and gas recovery, and reduce natural field decline.
“We are moving into a period of higher capital spending as we fund new legacy projects, including sizeable investment in our LNG mega projects,” said George Kirkland, Chevron vice chairman.
Upstream spending expected in 2011 includes major projects in the following regions:
• Western Australia – development of Gorgon and Wheatstone natural gas resources and associated LNG facilities.
• US Gulf of Mexico – deepwater exploration and development, including Jack/St. Malo, Tahiti-2, Big Foot, Perdido and Buckskin appraisal
• Brazil – development of the Papa Terra and Frade deepwater fields.
• Nigeria – development of the Usan and Agbami deepwater fields and construction of the Escravos gas-to-liquids facility.
• Angola – construction of an LNG facility.
• Thailand – development of the offshore Platong II natural gas project.
• China – development of the Chuandongbei natural gas project.
• Canada – Athabasca Oil Sands expansion and Hebron development.
• United Kingdom – development of the offshore Clair Ridge Field in the West of Shetlands area.
