Chevron announces $26.6bn capital, exploratory budget for 2016

Chuks Isiwu 12 December 2015, Sweetcrude, Lagos – US oil giant Chevron Corporation has announced a $26.6 billion capital and exploratory investment programme for 2016.

Mr John Watson

Included in the 2016 programme are $4.5 billion of planned expenditures by affiliates, the company saidon Friday, adding that the 2016 budget is 24% lower than total expected investments for 2015.

“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.”

For upstream, Chevron said 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 .

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