Chevron announces $21.6 billion capital budget

Chevron Corp. announced a $21.6 billion capital and exploratory spending program for 2010, down 5% from projected 2009 spending.

By OGJ editors
HOUSTON, Dec. 14
-- Chevron Corp. announced a $21.6 billion capital and exploratory spending program for 2010, down 5% from projected 2009 spending.

Included in the 2010 budget are $1.6 billion of expenditures by affiliates, which do not require cash outlays by Chevron's consolidated companies. Dave O'Reilly, chairman and chief executive officer, said 80% of the 2010 spending program is for upstream exploration and production projects worldwide. Another 16% is earmarked for the company's downstream businesses that manufacture, transport, and sell gasoline, diesel fuel, and other refined products.

“Much of our 2010 spending continues to be on large, multiyear projects consistent with our upstream growth strategies and on improving operating efficiency and reliability,” O'Reilly said.

A total $17.3 billion is budgeted for upstream operations including $4.1 billion US and the rest international. Downstream will total $3.4 billion, including $1.6 billion US and $1.8 billion international. Chemicals, technology, power generation, and other corporate activities are budgeted at $900 million.

Major capital projects include development of the Gorgon natural gas project in Western Australia and opportunities in the deepwater US Gulf of Mexico, offshore western Africa, and the Gulf of Thailand. Funding is also planned for focused appraisal in core hydrocarbon basins.

Downstream outlays will include projects in the company's refineries in Mississippi and California. The company's 50%-owned GS Caltex affiliate also is to continue upgrading of its Yeosu refining complex in South Korea. In support of projects to commercialize the company's large natural gas resource base, downstream expenditures will be made in 2010 on gas-to-liquids manufacturing facilities.

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