Chevron Corp. estimates it will spend $20 billion in 2019 to support its upstream and downstream projects.
The company said its 2019 capital and exploratory budget is “highlighted by our world-class Permian basin position, additional shale and tight development in other basins, and our major capital project at TCO in Kazakhstan,” said Michael K. Wirth, chairman and chief executive officer. “Our investments are anchored in high-return, short-cycle projects, with more than two thirds of spend projected to realize cash flow within 2 years.”
Upstream, some $10.4 billion is earmarked to sustain and increase currently producing assets, including $3.6 billion for the Permian and $1.6 billion for other shale and tight investments, the company said. About $5.1 billion of the upstream program is planned for major capital projects now under way, including $4.3 billion associated with the Future Growth Project at Tengiz oil field in Kazakhstan (OGJ Online, July 5, 2016). Global exploration funding is expected to be $1.3 billion. The remaining upstream capital will be for early-stage projects supporting potential future developments.
About $2.5 billion of planned capital spending is associated with the company’s downstream businesses, Chevron said.
