Chevron Corp. set a 2021 organic capital and exploratory spending budget of $14 billion and lowered its 2022-2025 annual capital guidance to $14-16 billion.
The company will continue to prioritize investments that are expected to grow long-term value and deliver higher returns and lower carbon, including over $300 million in 2021 for investments to advance the energy transition, it said in a Dec. 3 media release.
Chevron’s capital guidance from 2022 to 2025 is significantly lower than its previous guidance of $19-22 billion, which excluded Noble Energy. During this time period, as capital is expected to decrease for a major expansion in Kazakhstan, the company expects to increase investments in the Permian basin, other unconventional basins, and the Gulf of Mexico.
In the upstream business, $6.5 billion is allocated to currently producing assets, including about $2 billion for Permian unconventional development. Some $3.5 billion of the upstream program is planned for major capital projects underway, of which about 75% is associated with the Future Growth Project and Wellhead Pressure Management Project (FGP/WPMP) at Tengiz field in Kazakhstan (OGJ Online, Apr. 15, 2020). The remaining $1.5 billion is allocated to exploration, early stage development projects, and midstream activities.