Chevron outlines $22.9 billion budget for 2008

Chevron Corp. plans a $22.9 billion capital and exploratory spending program for 2008, a 15% increase from estimated outlays of $20 billion in 2007.

By OGJ editors
HOUSTON, Dec. 10 -- Chevron Corp. plans a $22.9 billion capital and exploratory spending program for 2008, a 15% increase from estimated outlays of $20 billion in 2007.

Anticipated cash expenditures by Chevron and consolidated companies next year will be $20.3 billion because the budget includes $2.6 billion of expenditures by affiliates.

Dave O'Reilly, Chevron chairman and chief executive officer, said 75% of the 2008 budget is for upstream projects worldwide and 20% is dedicated to downstream businesses.

"Much of our 2008 spending continues to be on large, multiyear projects," O'Reilly said.

Much of the upstream budget is allocated to development, including projects in deepwater Gulf of Mexico and western Africa.

George Kirkland, Chevron's executive vice-president of upstream and gas, said, "Production startups of major projects in 2008 are expected to include Blind Faith in the Gulf of Mexico and Agbami offshore Nigeria."

He also anticipates significant production increases at Kazakhstan's Tengiz field during 2008.

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