A Review of the Nigerian Energy Industry

Chevron announces $35bn capital and exploratory budget for 2015

30 January 2015, Sweetcrude, San Ramon, California – Chevron Corporation today announced a $35 billion capital and exploratory investment programme for 2015.


Included in the 2015 programme are $4 billion of planned expenditures by affiliates, which do not require cash outlays by Chevron . The 2015 budget is 13% lower than total investments for 2014.

“We continue to execute against a consistent set of business strategies which are focused on creating long-term value for our shareholders. Although commodity prices have fallen recently, we believe long-term market fundamentals remain attractive,” said Chairman and CEO John Watson .

“Our investment priorities are ensuring safe, reliable operations and progressing our queue of projects under construction. Once on-line, these new projects are expected to measurably increase our production and cash generation,” he said.

Watson added: “We will continue to monitor and be responsive to market conditions, and to actively pursue cost reductions throughout our supply chain in order to lower overall outlays. We anticipate growing flexibility in our spend as projects under construction are completed and as supplier contracts are renewed.

“We are testing our short-cycle investments, particularly base business and unconventional assets, at current prices and are selecting only the most attractive opportunities to move forward.”

Highlights of the capital and exploratory spending programme

For Upstream, approximately $12 billion of planned upstream capital spending is directed at existing base producing assets, which includes shale and tight resource investments ($3.5 billion ). Roughly $14 billion is related to the construction of major capital projects already underway, primarily LNG ( ~$8.5 billion ) and deepwater developments ($3.5 billion ). Global exploration funding accounts for approximately $3 billion .

Roughly 75 percent of affiliate expenditures are associated with investments by Tengizchevroil LLP in Kazakhstan and Chevron Phillips Chemical Company in the United States .

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry.

Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels.


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