2018 capital and exploratory spending program of $18.3 billion has been declared by Chevron Corporation, which includes $5.5 billion for the company’s share of expenditures by affiliated companies.
Chairman and CEO John Watson, said, “Our 2018 budget is down for the fourth consecutive year, reflecting project completions, improved efficiencies, and investment high-grading. We’re fully funding our advantaged Permian Basin position and dedicating approximately three-quarters spend to projects that are expected to realize cash flow within two years.”
Watson added that with production currently exceeding guidance in the Permian, the 2018 plan should deliver both strong production growth and solid free cash flow, at prices comparable to what was seen this year.
Almost $8.7 billion is forecasted to sustain currently producing assets in the upstream business which includes $3.3 billion for the Permian and $1.0 billion for other shale and tight rock investments. An estimated $5.5 billion of the upstream program has been planned for major capital projects underway. This includes $3.7 billion associated with the Future Growth Project at the Tengiz field in Kazakhstan. About $1.1 billion is expected to fund global exploration.
The company’s downstream businesses that refine, market and transport fuels, and manufacture and distribute lubricants, additives and petrochemicals has been associated with around $2.2 billion of planned capital spending. PWKD08122017