Chevron Corp. plans a slight increase in worldwide capital and exploratory spending to $4.3 billion in 1990 as it continues to restructure.
The budget includes $2.2 billion for exploration and development, unchanged from 1989, and about $1.2 billion for refining and marketing, up about 26% from 1989.
Chemical spending will be $380 million, unchanged from last year excluding the 1989 acquisition of Plexco, a polyethylene pipe and products manufacturer.
The rest of the budget is for shipping, information technology, land development, coal, minerals, and other items.
Chevron will concentrate spending on businesses critical to long term success while it sells or restructures nonstrategic assets (OGJ, Jan. 8, p. 17).
Exploration and production spending in 1990 will be split almost evenly in and out of the U.S., but the $400 million of international exploratory spending will be nearly twice the projected U.S. level.
About $800 million of the refining and marketing budget is earmarked for U.S. projects.
1990 MILESTONES
Chevron cited several milestones expected to occur in 1990, including start-up of Anoa field as its first production off Indonesia, start of development of Hibernia field off Newfoundland, and the first full year of liquefied natural gas shipments from Australia's Northwest Shelf.
The company said discussions continue on possible Chevron exploration and production projects in the Soviet Union.
Efforts to divest poorly performing fields will be stronger in 1990 than 1989 as the company continues to upgrade U.S. oil and gas holdings.
It expects to make a decision this year on a $1 billion upgrade of its 270,000 b/cd Richmond, Calif., refinery.
Most of the $400 million international refining and marketing outlay will be spent by 50% owned Caltex Petroleum Corp. to expand and upgrade facilities in Asia, Australia, and Africa.
PLANS IN CANADA
Chevron Canada Re sources Ltd. will increase exploration and production spending in 1990 by $20 million to $350 million (U.S.)
The company will spend about one third of the total on exploration. It is evaluating drilling prospects in the Beaufort Sea on properties it acquired in 1989 from Husky Oil Ltd. for $150 million.
Chevron plans to sell $100 million in petroleum assets in western Canada, mainly in Alberta and some in Manitoba. The company wants to rationalize properties, strengthen core areas, and get rid of assets that don't generate a large profit.
The assets will be sold in 10 packages, with the first to be offered in March. Chevron also plans to buy properties under the rationalization program.
Chevron Canada Ltd., Vancouver, B.C., a refining and marketing unit of Chevron Corp., will spend $30 million in 1990 upgrading a refinery at Burnaby, B.C., and its service station network.
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