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Chevron Announces 2010 Capital Program

[2010 budgeted expenditures of $21.6B are nominally a 5% decrease from 2009; however, this figure is misleading because CVX made two large one-time payments to affiliates in 2009. Excluding these one-time payments, the 2010 capital budget is a 5% increase relative to 2009.

Of the 2010 total, 80% is for E&P, 16% for downstream ops, and 4% for chemicals and miscellaneous. 76% of the E&P portion is ex-US.]

http://finance.yahoo.com/news/Chevron-Announces-216-Billion-bw-2034816450.html?x=0&.v=1

›9:00 am EST, Thursday December 10, 2009

SAN RAMON, Calif.--(BUSINESS WIRE)--Chevron Corporation (NYSE: CVX ) today 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.

Downstream – Refining, Marketing and Transportation

Capital spending of $3.4 billion in 2010 is budgeted for global downstream operations. Included in the budget is $1.6 billion for projects in the United States, primarily for refinery projects.

These expenditures will enhance the company’s ability to safely and reliably manufacture transportation fuels from a variety of feedstocks, improve product yields, increase energy efficiency and provide environmental benefits.

Outlays in 2010 include projects in the company’s refineries in Mississippi and California. The company’s 50 percent-owned GS Caltex affiliate is also expected to continue development work on upgrading of its Yeosu refining complex in South Korea. In support of projects to commercialize the company’s large natural gas resource base, downstream expenditures will be made in 2010 on gas-to-liquids manufacturing facilities.

Chemicals and Other

Expenditures of approximately $0.9 billion in 2010 are budgeted for chemicals, technology, power generation and other corporate activities.‹