Chevron outlines $20 bln 2019 capital and exploratory program

US energy giant Chevron on Friday said it has set a$20 billion capital and exploratory budget for 2019. 

In the upstream business, approximately $10.4 billion is forecasted to sustain and grow currently producing assets, including $3.6 billion for the Permian and $1.6 billion for other shale and tight investments, Chevron said.

Approximately $5.1 billion of the upstream program is planned for major capital projects underway, including $4.3 billion associated with the Future Growth Project at the Tengiz field in Kazakhstan.

Global exploration funding is expected to be about $1.3 billion. Remaining upstream spend will be for early-stage projects supporting potential future developments, the company’s statement reads.

Speaking of the budget, Chevron’s chairman and CEO Michael Wirt, said, “Our investments are anchored in high-return short-cycle projects, with more than two-thirds of spend projected to realize cash flow within two years.”

He added the company expects to continue delivering production growth.

Also in its program, Chevron has earmarked approximately $2.5 billion for the company’s downstream businesses that refine, market and transport fuels, and manufacture and distribute lubricants, additives and petrochemicals.