Chevron Tags $17.3B for Upstream Spending in 2010

Chevron has announced a $21.6 billion capital and exploratory spending program for 2010, a five percent decrease from projected 2009 expenditures. Included in the 2010 program are $1.6 billion of expenditures by affiliates, which do not require cash outlays by Chevron's consolidated companies.

"Our company is in a strong financial position," said Chairman and CEO Dave O'Reilly.

O'Reilly said about 80 percent of the 2010 spending program is for upstream oil and gas exploration and production projects worldwide. Another 16 percent is associated with 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 added.

Upstream -- Exploration and Production

Spending of $17.3 billion is planned for exploration, production and natural gas-related projects. Major capital projects include development of the Gorgon natural gas project in Western Australia and opportunities in the deepwater U.S. Gulf of Mexico, offshore western Africa and the Gulf of Thailand. Funding is also planned for focused appraisal in core hydrocarbon basins.

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

Major upstream spending expected in 2010 includes activities in the following areas:

  • Western Australia -- development of Gorgon and Wheatstone natural gas resources, including LNG facilities.
  • U.S. Gulf of Mexico -- deepwater exploration and development, including Jack-St. Malo, Perdido, Tahiti, Tonga and Big Foot.
  • Brazil -- development of the Frade and Papa Terra fields.
  • Nigeria -- development of the Usan and Agbami deepwater fields.
  • Angola -- construction of LNG facilities and development of Block 14 deepwater assets.
  • Thailand -- development of the offshore Platong Gas II project.
  • China -- development of the Chuandongbei natural gas project.
  • Canada -- Athabasca Oil Sands expansion.