Chevron Capital, Exploratory Spending to Total US$18.3 billion in 2018

Chevron Corporation’s capital and exploratory budget will be US$18.3 billion in 2018, down from US$19.8 billion in 2017.

Upstream spend is expected to total US$15.8 billion in the period, with approximately US$8.7 billion earmarked to sustain currently producing assets, including US$3.3 billion for projects in the Permian and US$1 billion for other shale and tight rock investments.

Around US$5.5 billion of the upstream programme is planned for major capital projects underway, including US$3.7 billion associated with the Future Growth Project at the Tengiz field in Kazakhstan. Global exploration funding is expected to be about US$1.1 billion and remaining upstream spend will be for early stage projects supporting potential future developments.

Approximately US$2.2 billion of planned capital spending will go towards the company’s downstream businesses which refine, market and transport fuels, and manufacture and distribute lubricants, additives and petrochemicals.

“Our 2018 budget is down for the fourth consecutive year, reflecting project completions, improved efficiencies, and investment high-grading,” said Chairman and CEO, John Watson, in a statement.

“We’re fully funding our advantaged Permian Basin position and dedicating approximately three-quarters of our spend to projects that are expected to realise cash flow within two years,” he added.

“With production currently exceeding guidance in the Permian, our 2018 plan should deliver both strong production growth and solid free cash flow, at prices comparable to what we’ve seen this year,” Mr Watson continued.