The California-based supermajor also sees lower 2017 production than previously expected, albeit basing its new estimate on a significantly higher oil price than previously thought.
In Tuesday’s analyst presentation, Chevron said proceeds from asset divestments from 2014 to 2016 are projected to hit $10 billion.
This compares with $7 billion taken between 2011 and 2013, with just over $2 billion of that coming from the upstream sector.
More than 80% of this $10 billion is set to involve upstream asset sales, as Chevron nears the end of the rationalisation of its downstream portfolio.
The net production outlook for 2017 is now 3.1 million barrels of oil equivalent per day from a previous outlook given in 2013 of 3.3 million boepd. The new 2017 guidance assumes, however, a per-barrel price of $110, as against the guidance in 2013 that assumed a price of $79.
Chevron pointed to project delays as part reason for the drop in expected output, highlighting issues at the Chuandongbei sour gas development in China. Upstreamreported in November that production-sharing partner PetroChina urged the US supermajor to put its efforts into completing the project’s first phase before tending to the second phase.
The Chevron-led Tengizchevroil (TCO) venture developing the Tengiz field in western Kazakhstan is also subject to project slippage, it said.
Chevron also said that 2013 represented a “peak” when it comes to capital expenditure, with capex to come down in the next three years. Last year saw more jsut over $40 billion in capex.
Although the company will spend more this year than last year on upstream projects, it will spend nothing on business development and about the same on downstream and chemicals.
The projected total spend for 2015-2016 is about the same as 2014.
Chevron will spend less on liquefied natural gas and US gas plays, but unconventional plays will receive more cash.
Both North America and the Asia-Pacific region will receive 34% of the capex total, with 17% set aside for Africa-Latin America and 15% earmarked for Europe, Eurasia and Middle East.
Base upstream projects will receive 21% of capex, with LNG getting 22% and deep-water 13%. Shale and tight resources will get 11%, other upstream 15%, exploration 7% and downstream and chemicals a combined 8%.
Chief executive John Watson commented: “World energy demand continues to grow and the outlook for the energy business remains excellent.
“Our strategies are sound, and we’re poised to deliver significant production growth through the end of the decade.”
Jay Johnson, senior vice president of upstream, continued: “Our plan for production growth is solid and will be driven by near-term project ramp-ups as well as our larger major capital projects which begin starting up later this year.
“These projects are attractive, and when combined with profitable production growth from our shale and tight resource developments, are expected to add over 800,000 boepd by 2017.
“We also have a deep queue of other growth opportunities which should allow us to continue growing production to the end of the decade.”