Chevron Corporation announced on Thursday a $26.6 billion capital and exploratory investment program for 2016 which is a 24% decrease compared to 2015.
Included in the 2016 program are $4.5 billion of planned expenditures by affiliates. The 2016 budget is 24% lower than total expected investments for 2015, Chevron said on Thursday.
“Our capital budget will enable us to complete and ramp-up projects under construction, fund high return, short-cycle investments, preserve options for viable long-cycle projects, and ensure safe, reliable operations,” said Chairman and CEO John Watson .
“We gain significant flexibility in our capital program as we complete projects under construction,” Watson continued.
“Given the near-term price outlook, we are exercising discretion in pacing projects that have not reached final investment decision.”
According to the company, for Upstream, approximately $9 billion of planned capital spending is for existing base producing assets, which includes shale and tight resource investments. Roughly $11 billion is related to major capital projects currently underway, and approximately $3 billion relates to projects yet to be sanctioned. Global exploration funding accounts for approximately $1 billion.
Approximately 80 percent of affiliate expenditures are associated with investments by Tengizchevroil LLP in Kazakhstan and Chevron Phillips Chemical Company LLC (CPChem) in the United States.