06 December 2012

Chevron’s capital & exploratory budget for 2013, $26.8 billion for International activities

  • $36.7 billion capital & exploratory investment program
  • $25.5 billion for International Upstream and $1.3 billion for International Downstream activities 
  • Includes projects in Australia, Nigeria, Kazakhstan, Angola, Congo, Canada, Brazil, China, Russia, UK and Singapore
San Ramon, Calif. – 05 December 2012 (BUSINESS WIRE) - Chevron Corporation today announced a $36.7 billion capital and exploratory investment program for 2013. Included in the 2013 program are $3.3 billion of planned expenditures by affiliates, which do not require cash outlays by Chevron. 

"Consistent with long-stated strategies, we're investing in a portfolio of very attractive oil and gas projects that will deliver volume growth and real value to our stockholders," said Chairman and CEO John Watson. 

Approximately 90 percent of the 2013 spending program is budgeted for upstream crude oil and natural gas exploration and production projects. Another 7 percent is associated with the company's downstream businesses. 

Chevron’s 2013 planned capital and exploratory expenditures include $25.5 billion for International Upstream and $1.3 billion for International Downstream activities. 

Investment of $33 billion is planned for exploration and production activities, including major natural gas-related projects. Notable major capital investments include developments in Australia, Nigeria, the U.S. deepwater Gulf of Mexico, Kazakhstan, Angola and the Republic of Congo

In Australia, the Gorgon three-train LNG foundation project on Barrow Island has been under construction for three years and is approximately 55 percent complete. A cost and schedule review has been completed, and the total cost estimate for the foundation project has increased from AU$43 billion (US$37 billion) to AU$52 billion (US$52 billion). Plant startup is planned for late 2014, leading to the first LNG cargo in the first quarter 2015. 

  • Nigeria - further development of the Usan and Agbami deepwater fields and construction and plant commissioning of the Escravos gas-to-liquids facility 
  • Angola/Republic of Congo - startup and ramp up of Angola LNG and development of Mafumeira Sul (Angola) and Moho Nord (Republic of Congo) 
  • Kazakhstan/Russia - advancement of the Tengiz Future Growth Project(Kazakhstan) and the Caspian Pipeline expansion (Kazakhstan, Russia) 
  • Brazil - advancement of the Papa-Terra deepwater project 
  • Canada - Hebron offshore development 
  • United Kingdom - advancement of the Clair Ridge project and the Rosebankdeepwater field 
  • China - development of the Chuandongbei natural gas project 
Global exploration funding is expected to be $3.4 billion in 2013. This planned spending includes initial appraisal of new acreage acquired over the past two years, including Suriname, the Kurdistan region of Iraq and Sierra Leone. The program also supports continued exploration and appraisal activity in Western Australia, the Gulf of Mexico, West Africa, and in several shale gas regions around the world. 

About 30 percent of the upstream capital program is targeted to support maintenance activities and mitigation of field declines, as well as highly profitable projects related to currently producing assets. Highlights of the 2013 base program include an increase in activity across several producing regions of North America as well as an increase in expenditures in Thailand and Indonesia. 

Capital spending of $2.7 billion in 2013 is budgeted for downstream operations. Expenditures in refining are geared toward enhancing reliability and energy efficiency, feedstock flexibility and production of cleaner transportation fuels. Planned capital spending also is directed toward producing premium base oil in Pascagoula, Mississippi, and to expanding Oronite additives production in Singapore. 

Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. Chevron is based in San Ramon, California. 

Source: Chevron