Chevron projects $18.3 bil­lion spend­ing

The Jakarta Post - - INTERNATIONAL -

HOUS­TON: Chevron Corp, the sec­ond largest United States-based oil pro­ducer, is bud­get­ing US$18.3 bil­lion for cap­i­tal projects next year, the com­pany said on Wed­nes­day, about 4 per­cent less than this year and lower for a fourth year in a row.

In­ter­na­tional en­ergy com­pany cap­i­tal bud­gets, closely watched for in­di­ca­tions of fu­ture oil and gas pro­duc­tion, broadly have been shrink­ing af­ter 2014’s oil-price col­lapse slashed earn­ings and left many with high debt loads.

In Chevron’s case, the sharp de­clines co­in­cide with its spend­ing winding down on sev­eral long-term and costly projects in Australia and else­where. Cap­i­tal and ex­ploratory spend­ing in the first nine months of this year was about half that of three years ago, a com­pany spokes­woman said.

The 2018 bud­get re­flects “project com­ple­tions, im­proved ef­fi­cien­cies and in­vest­ment high-grad­ing,” said chief ex­ec­u­tive John Wat­son in a state­ment. Spend­ing on shale will rise to $4.3 bil­lion over­all this year, said Wat­son, who will re­tire early next year.

The San Ra­mon, Cal­i­for­nia-based com­pany ex­pects ex­pen­di­tures this year to be less than $19 bil­lion, down from the $19.8 bil­lion it es­ti­mated a year ago. It has told in­vestors that cap­i­tal spend­ing be­tween 2018 and 2020 would range from $17 bil­lion to $22 bil­lion a year.

Next year, Chevron ex­pects to spend $15.8 bil­lion on oil and gas ex­plo­ration, $2.2 bil­lion on re­fin­ing, mar­ket­ing and petro­chem­i­cals, and about $300 mil­lion for its share of af­fil­i­ated com­pany spend­ing. — Reuters

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