Chevron Announces 2011 Capital, Exploratory Spending Plan

Chevron Corporation today announced a $26.0 billion capital and exploratory spending program for 2011. Included in the 2011 program are $2.0 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.

"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. We're building legacy asset positions which will reward shareholders for decades to come," said Chairman and CEO John Watson. "At the same time, we are committed and able to reward shareholders with competitive dividend growth and share repurchases."

Approximately 85 percent of the 2011 spending program is for upstream oil and gas exploration and production projects worldwide. Another 10 percent 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.


 Chevron 2011 Planned Capital & Exploratory Expenditures    $ Billions

 U.S. Upstream                                                                                       $ 5.4

 International Upstream                                                                       $17.2

 Total Upstream                                                                                     $22.6

 U.S. Downstream                                                                                   $1.7

 International Downstream                                                                    $1.2

 Total Downstream                                                                                  $2.9

 Other                                                                                                          $0.5

 TOTAL (Including Chevron's Share of Expenditures by Affiliated Companies) $26.0

 Expenditures by Affiliated Companies                                                (2.0)

 Cash Expenditures by Chevron Consolidated Companies           $24.0


Spending of $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 U.S. Gulf of Mexico, Western Africa and the Gulf of Thailand. Funding is planned for focused exploration and appraisal programs 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.

"We are moving into a period of higher capital spending as we fund new legacy projects, including sizeable investment in our LNG mega projects," said George Kirkland, Chevron vice chairman.

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.

U.S. 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.

United Kingdom - development of the offshore Clair Ridge Field in the West of Shetlands area.


Capital spending of $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 percent-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 percent-owned Chevron Phillips Chemical Company LLC.

All Other

Expenditures of approximately $0.5 billion in 2011 are budgeted for technology, power generation and other corporate activities.


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