Deepwater projects to get big share of Chevron spending in 2013

Offshore staff

SAN RAMON, California – Chevron (NYSE:CVX) has included some major upstream offshore spending within its 2013 budget for capex and exploration. In fact, about 90% of the $36.7-billion program targets upstream oil and gas exploration and production projects.

“Next year's program supports several projects currently under construction, including our Australian LNG projects and United States deepwater developments,” said John Watson, chairman and CEO. “As these and other projects come online, we anticipate production will reach our 2017 goal of 3.3 MMb/d.”

Among these investments are major offshore projects in Australia, the Gulf of Mexico, and West Africa.

Chevron said the cost for Gorgon LNG project off Northwest Australia has increased from $37 billion to $52 billion and that the onshore liquefaction plant startup is scheduled for late in 2014.

In talking about Australia, George Kirkland, vice chairman of Chevron, said the company continues to add to its gas reserve totals and that might support future expansion of LNG developments.

In the Gulf of Mexico, projects under development include Jack/St. Malo, Big Foot, and Tubular Bells. The Jack/St. Malo and Big Foot projects are approximately 55% and 65% complete, respectively, and are on budget. First production for both of these projects is expected in 2014.

Offshore West Africa, further development at Usan and Agbami are expected. The same is true for the Papa-Terra deepwater project off Brazil. Hebron off Canada and the Clair Ridge and Rosebank projects in the North Sea also are in the budget.

Global exploration spending by Chevron in 2013 is set at $3.4 billion.

12/07/2012

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