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| Chevron announces capital and exploratory program for 2007  Chevron Corporation announced a $19.6 billion capital and exploratory spending program for 2007, a 20 percent increase from expected outlays of approximately $16 billion in 2006. "Our 2007 capital and exploratory program is a record level of investment by our company", said Chairman and CEO Dave O'Reilly. "About 75 percent of next year's budget is for oil and gas exploration and production projects worldwide", O'Reilly added. "Another 20 percent is dedicated to the company's global refining, marketing and transportation businesses which manufacture and sell gasoline, clean diesel fuel, biofuels and other refined products in the company's marketing areas." O'Reilly said the 2007 budget includes $6.7 billion of total investment in the United States.The majority of the planned increase is related to the company's exploration and production operations. Capital and exploratory spending of $14.6 billion is budgeted for exploration, production and natural gas-related projects. A significant component of this spending relates to upstream development projects that are building on the company's successful and focused exploration results in recent years, including opportunities in the deepwater U.S. Gulf of Mexico and western Africa. Funding is also earmarked for further appraisal and evaluation of other prospective areas in the world's major hydrocarbon basins. Major upstream spending in 2007 includes projects in the following areas: U.S. Gulf of Mexico – deepwater exploration and development, including Tahiti, Great White Perdido, Blind Faith and Jack; Angola – deepwater developments, including Tombua Landana, and construction of liquefied natural gas (LNG) facilities; Republic of the Congo – development of the Moho-Bilondo Field; Nigeria – continued development of the deepwater Agbami Field, and additional deepwater exploration; Kazakhstan – expansion of the Tengiz Field; Australia – further development of the Greater Gorgon Area natural gas resource offshore Western Australia; Canada – expansion of the Athabasca Oil Sands Project; Brazil – development of the Frade Field. Capital spending of $3.8 billion in 2007 is budgeted for downstream operations, of which $1.6 billion is for projects in the United States. Outlays in 2007 include projects to upgrade the company's refineries in Mississippi and California. The company's 50 percent-owned GS Caltex affiliate is also in the process of a major upgrade to its Yeosu refining complex in South Korea. And in support of upstream projects to help commercialize the company's large natural gas resource base outside the United States, expenditures will be made in 2007 on the construction of LNG tankers and gas-to-liquids facilities. Expenditures of approximately $1.2 billion in 2007 are estimated for investments in chemicals, technology, and other corporate activities. The company also indicated board approval to acquire up to $5 billion of the company's common stock over a period of up to three years. write your comments about the article :: © 2006 Construction News :: home page |