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Chevron in 1st capex boost after 4 years. Set to spend $20 billion in 2019
07 December 2018 , 18:00Neftegaz.RU430
California, December 7 - Neftegaz.RU. Chevron has announced a $20 billion-dollar capex for 2019, marking a 1st budget boost after it had lowered capex for four years in a row. The budget for 2018 was $18.3 billion.
Of the $20 billion, California-based Chevron plans to spend $17.3 billion on its Upstream business, of which $7.6 billion on the U.S. Upstream, and 9.7 billion on the International Upstream. In the upstream business, approximately $10.4 billion is forecasted to sustain and grow currently producing assets, including $3.6 billion for the Permian and $1.6 billion for other shale and tight investments.
Approximately $5.1 billion of the upstream program is planned for major capital projects underway, including $4.3 billion associated with the Future Growth Project at the Tengiz field in Kazakhstan. Global exploration funding is expected to be about $1.3 billion. Remaining upstream spend will be for early-stage projects supporting potential future developments.
Chairman and CEO Michael Wirth: 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. Our investments are anchored in high-return short-cycle projects, with more than two-thirds of spend projected to realize cash flow within 2 years.
Wirth continued: We expect to continue to deliver steady production growth, enabling continued free cash flow that underpins our strong dividend and share repurchase program.
Approximately $2.5 billion of planned capital spending is associated with the company’s downstream businesses that refine, market and transport fuels, and manufacture and distribute lubricants, additives and petrochemicals.
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