30/01/2009 - 12:46

Chevron commits $35bn to global projects

30/01/2009 - 12:46

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Oil and gas giant Chevron has set aside over $A35 billion towards capital and exploration spending worldwide in 2009, including Western Australia's Gorgon, Wheatstone and North West Shelf projects.

Chevron commits $35bn to global projects

Oil and gas giant Chevron has set aside over $A35 billion towards capital and exploration spending worldwide in 2009, including Western Australia's Gorgon, Wheatstone and North West Shelf projects.

In a statement today the United States company said it will maintain its 2008 capital and exploration expenditure of $US22.8 billion ($A35 billion) throughout this calendar year.

Included in the figure is $US1.8 billion of expenditures by Chevron's affiliates.

Chairman and chief executive Dave O'Reilly said around 75 per cent of the 2009 spending program is for upstream oil and gas exploration and production projects worldwide.

In total, Chevron said it will spend $US17.5 billion ($A27.1 billion) on upstream projects, with $US3.6 billion of that allocated to its US projects and the remainder, $US13.9 billion, for its international operations.

"Our upstream investments are aimed at finding and developing oil and gas resources to increase production and help supply the energy needs of markets around the world," Chevron vice president of Upstream and Gas George Kirkland said.

Chevron will spend $US4.3 billion of the total capital and exploration spend on its downstream assets and $US1 billion has been budgeted for chemicals, technology, power generation and other corporate activities.

"Much of our 2009 spending continues to be on large, multiyear projects aimed at increasing energy supplies to meet global demand and also improving operating efficiency and reliability," Mr O'Reilly said.

"About 10 per cent of the budget is for large, one-time payments related to upstream production concessions outside the United States."

 

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