Chevron's capital, exploratory budget unchanged from 2008

Chevron has announced a $22.8 billion capital and exploratory spending program for 2009, unchanged from the company's level of expenditures in 2008.

Offshore staff

SAN RAMON, California -- Chevron has announced a $22.8 billion capital and exploratory spending program for 2009, unchanged from the company's level of expenditures in 2008. Included in the 2009 program are $1.8 billion of expenditures by affiliates, which do not require cash outlays by Chevron's consolidated companies. Seventy-five percent of the 2009 spending program is for upstream oil and gas exploration and production projects worldwide, the company reports.

Spending of $17.5 billion is planned for exploration, production, and natural gas-related upstream projects. A significant portion relates to development projects that build on the company's exploration results in recent years, including opportunities in the deepwater US Gulf of Mexico, western Africa, and the Gulf of Thailand. Funding also is earmarked for further appraisal and evaluation of other prospective areas in the world's major hydrocarbon basins, including Northwest Australia.

"Start-ups of major projects in 2009 are expected to include Tahiti in the GoM, Tombua-Landana offshore Angola and Frade offshore Brazil," says George Kirkland, Chevron's executive VP of Upstream and Gas. "We also anticipate significant production increases from recent start-ups at Agbami offshore Nigeria and Blind Faith in the GoM and from expansion activity at Tengiz in Kazakhstan."

Major upstream spending in 2009 includes activities in the following areas:
• GOM – deepwater exploration and development, including Perdido and Jack- St. Malo
• Brazil – development of the Frade field
• Nigeria – development of the Agbami and Usan deepwater fields
• Angola – development of block 14 assets, including Tombua-Landana, and construction of LNG facilities
• Western Australia – development of Gorgon, Wheatstone, and North West Shelf offshore natural gas resources, including LNG facilities
• Thailand – development of the Platong Gas II project offshore Thailand
• Indonesia – northern expansion of the Duri field steamflood project
• China – one-time payment and initial development of the Chuandongbei gas field
• Middle East – one-time payment for concession extension and development in the Partitioned Neutral Zone of Saudi Arabia and Kuwait.

01/29/2009

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