Chevron Corporation has announced a US$ 26 billion capital and exploratory spending programme for 2011. Included in the 2011 programme are US$ 2 billion of expenditures by affiliates, which do not require cash outlays by Chevron. Acquisition costs associated with the recently announced purchase of Atlas Energy, Inc. are not included.
Approximately 85% of the 2011 spending programme is for upstream oil and gas exploration and production projects worldwide. Another 10% is associated with the company's downstream businesses that manufacture, transport and sell gasoline, diesel fuel and other refined products, fuel and lubricant additives, and petrochemicals.
Spending of US$ 22.6 billion is planned for exploration and production activities, including major natural gas related projects. Major capital investments include development of the vast natural gas resources in Western Australia and development opportunities in the deepwater US Gulf of Mexico, Western Africa and the Gulf of Thailand. Funding is planned for focused exploration and appraisal programmes in core hydrocarbon basins. Capital spending will also be directed towards existing assets throughout the world to improve oil and gas recovery, and reduce natural field decline.
Upstream spending expected in 2011 includes major projects in the following regions:
- Western Australia: development of Gorgon and Wheatstone natural gas resources and associated LNG facilities.
- US Gulf of Mexico: deepwater exploration and development, including Jack/St. Malo, Tahiti-2, Big Foot, Perdido and Buckskin appraisal.
- Brazil: development of the Papa Terra and Frade deepwater fields.
- Nigeria: development of the Usan and Agbami deepwater fields and construction of the Escravos gas to liquids facility.
- Angola: construction of an LNG facility.
- Thailand: development of the offshore Platong II natural gas project.
- China: development of the Chuandongbei natural gas project.
- Canada: Athabasca Oil Sands expansion and Hebron development.
- UK: development of the offshore Clair Ridge Field in the West of Shetlands area.
Capital spending of US$ 2.9 billion in 2011 is budgeted for downstream operations. Outlays in 2011 include projects at the company's refineries in Mississippi and California, which are geared towards improving returns. These expenditures will enhance the company's ability to manufacture transportation fuels and base oils from a variety of feedstocks, while increasing product yields and energy efficiency.
The company's 50% owned GS Caltex affiliate is also expected to continue to upgrade the Yeosu refining complex in South Korea. Additional projects associated with the company's chemicals operations in Saudi Arabia and Qatar are managed through the 50% owned Chevron Phillips Chemical Company LLC.
Expenditures of approximately US$ 0.5 billion in 2011 are budgeted for technology, power generation and other corporate activities.