Chevron to invest $26.6 billion in 2011

Chevron will spend a significant amount of the $26.6 billion it has earmarked for investment in 2011 on natural gas related projects in WA.

Overnight, Chevron announced it will spend $23.12 billion in exploration and production activities next year.

A large part of this will be on the $43 billion Gorgon project which is operated and half-owned by Chevron.

Chevron is also investing heavily in its wholly owned Wheatstone project, ahead of a final investment decision.

Chevron also said it would pursue development projects in the deepwater US Gulf of Mexico, western Africa and the Gulf of Thailand.

Another $2.97 billion will go towards downstream operations, including projects at the company's refineries in Mississippi and California that are geared toward improving returns, it said.

"We have an unparalleled set of opportunities. Our previous investments have performed well, giving us the cash and financial strength to fund numerous attractive projects in rapid succession," Chevron chief executive John Watson said in a statement.

"At the same time, we are committed and able to reward shareholders with competitive dividend growth and share repurchases."

Chevron reported in October a third-quarter profit of $3.8 billion, down 1.6 per cent from the same period last year.