Chevron plans $26 billion budget for 2011

Paula Dittrick
OGJ Senior Staff Writer

HOUSTON, Dec. 9 -- Chevron Corp. plans a $26 billion capital spending budget for 2011, of which $22.6 billion is targeted for oil and gas exploration and production projects worldwide with $5.4 billion going to US projects and $17.2 billion going to projects elsewhere.

For 2010, Chevron had a $21.6 billion capital and exploration spending program (OGJ Online, Mar. 1, 2010).

Major 2011 upstream investments include development of natural gas resources in Western Australia and development of assets in the Gulf of Mexico, West Africa, and the Gulf of Thailand.

George Kirkland, Chevron vice-chairman, said the company’s 2011 capital budget involves “sizeable investment in our LNG megaprojects,” including development of Gorgon and Wheatstone gas resources and LNG operations in Western Australia and an LNG development in Angola.

In Nigeria, Chevron plans to develop Usan and Agbami deepwater oil fields. Downstream, meanwhile, Chevron plans to spend $2.9 billion during 2011, including outlays for its refineries in Mississippi and California. Chevron has the 269,000-b/cd refinery in El Segundo, Calif., the 243,000-b/cd refinery in Richmond, Calif., and the 330,000-b/cd refinery in Pascagoula, Miss.

“The company’s 50%-owned GS Caltex affiliate is also expected to continue to upgrade the Yeosu refining complex in South Korea,” Chevron said. “Additional projects associated with the company’s chemicals operations in Saudi Arabia and Qatar are managed through the 50%-owned Chevron Phillips Chemical Co. LLC.” The Yeosu refinery has a 750,000-b/cd capacity.

The 2011 budget includes $2 billion of expenditures by affiliates, and that will do not require cash outlays by Chevron. Acquisition costs associated with the recently announced purchase of Atlas Energy Inc. also are not included in the 2011 budget.

Contact Paula Dittrick at paulad@ogjonline.com.

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