SAN RAMON, California – Chevron reports a $39.8 billion capital and exploratory investment program for 2014. Investment of $35.8 billion is planned for exploration and production activities. Notable major capital investments include developments in Australia, Nigeria, the Gulf of Mexico, the Permian Basin, Kazakhstan, Angola, and the Republic of the Congo.
Planned capital spending is also directed toward improving crude oil and natural gas recovery and reducing natural field declines from existing producing assets throughout the world. About 30% of the Upstream capital program is allocated to development wells and other projects associated with current producing assets. The 2014 base program includes an increase in activity across several producing regions of North America as well as in Thailand and Indonesia.
In Australia, the Gorgon project has been under construction for four years and is almost 75% complete. The current estimate for the cost of the foundation project is $54 billion (AU$55 billion), with plant startup and first gas planned for mid-2015.
“Gorgon project economics are attractive,” said vice chairman George Kirkland. “We continue to make steady progress against key project milestones and are applying lessons learned to our Wheatstone development which is almost 25% complete. Approximately 75% of our combined LNG offtake from the two projects is committed under firm, long-term sales and purchase agreements. These LNG developments are two of our most important future legacy assets, representing approximately 400,000 barrels a day of net production at full capacity.”
In the Gulf of Mexico, projects under development include Jack/St. Malo, Big Foot, and Tubular Bells. The Jack/St. Malo hull is moored on location and is on schedule for a 2014 startup. The Big Foot project is forecasting a 3Q 2014 tow to location and a 2Q 2015 startup.
Global exploration funding is expected to be $3.2 billion in 2014. This planned spending includes initial appraisal of new acreage acquired over the past two years, including Australia, the Kurdistan region of Iraq, and Morocco. The program also supports continued exploration and appraisal activity in Western Australia, the Gulf of Mexico, West Africa, and in shale gas regions around the world.