Chevron Announces US$20 Billion Capital and Exploratory Budget for 2019
Chevron Corporation has announced a 2019 organic capital and exploratory spending programme of US$20 billion.
“Our 2019 budget supports a robust portfolio of upstream and downstream investments, highlighted by our world-class Permian Basin position, additional shale and tight development in other basins and our major capital project at TCO in Kazakhstan,” said Chairman and CEO Michael Wirth.
“Our investments are anchored in high-return short-cycle projects, with more than two-thirds of spend projected to realize cash flow within two years. We expect to continue to deliver steady production growth, enabling continued free cash flow that underpins our strong dividend and share repurchase programme.”
Details of the 2019 Capital and Exploratory Spending Programme include:
| Chevron 2019 Planned Capital & Exploratory Expenditures | ||||
| US$ Billions | ||||
| US Upstream | 7.6 | |||
| International Upstream | 9.7 | |||
| Total Upstream | 17.3 | |||
| US Downstream | 1.5 | |||
| International Downstream | 1.0 | |||
| Total Downstream | 2.5 | |||
| Other | 0.2 | |||
| TOTAL (Including Chevron’s Share of Expenditures by Affiliated Companies) | 20.0 | |||
| Expenditures by Affiliated Companies | (6.3) | |||
| Cash Expenditures by Chevron Consolidated Companies | 13.7 | |||
In the upstream business, approximately US$10.4 billion is forecasted to sustain and grow currently producing assets, including US$3.6 billion for the Permian and US$1.6 billion for other shale and tight investments.
Approximately US$5.1 billion of the upstream programme is planned for major capital projects underway, including US$4.3 billion associated with the Future Growth Project at the Tengiz field in Kazakhstan.
Global exploration funding is expected to be about US$1.3 billion. Remaining upstream spend will be for early stage projects supporting potential future developments.
Approximately US$2.5 billion of planned capital spending is associated with the company’s downstream businesses which refine, market and transport fuels, and manufacture and distribute lubricants, additives and petrochemicals.
Source: OilVoice