Chevron hikes 2023 capital spending to $17 billion

US energy giant and LNG producer Chevron has increased its 2023 capital spending budget by more than 25 percent from this year to $17 billion.

Chevron announced budgets of $14 billion for consolidated subsidiaries (capex) and $3 billion for equity affiliates (affiliate capex), which total near the high end of the company’s guidance range.

These budgets support Chevron’s objective to safely deliver higher returns and lower carbon and include about $2 billion in lower carbon capex, more than double the 2022 budget, the firm said.

Chevron said its 2023 capex budget assumes cost inflation that averages in the mid-single digits with certain areas higher, such as the Permian Basin that assumes low double-digit cost inflation.

“We’re maintaining capital discipline while investing to grow both traditional and new energy supplies,” Chevron chairman and CEO Mike Wirth said in the statement.

“Our capex budgets remain in line with prior guidance despite inflation,” Wirth said.

Upstream capex includes more than $4 billion for Permian Basin development and roughly $2 billion for other shale & tight assets.

More than 20 percent of upstream capex is for projects in the Gulf of Mexico while the international upstream capex is $3.5 billion.

Lower carbon capex across all segments totals around $2 billion, including $0.5 billion to lower the carbon intensity of Chevron’s traditional operations and about $1 billion to increase renewable fuels production capacity, the firm said.

Chevron produced a record number of LNG cargoes in the third quarter of this year, mostly from its Gorgon and Wheatstone plants in Western Australia.

The company’s international upstream operations earned $5.91 billion in third quarter, compared with $3.17 billion a year ago.

- Advertisements -

Most Popular

ExxonMobil working on larger Rovuma LNG export project in Mozambique

US energy giant ExxonMobil has boosted the capacity of the planned Rovuma LNG onshore terminal in Mozambique and is...

Sempra takes FID on Port Arthur LNG project

US LNG player Sempra Infrastructure, a unit of Sempra, has taken a final investment decision for the first phase...

Excelerate to buy FSRU from Maran Gas

US floating LNG player Excelerate Energy plans to exercise an option to buy the 2020-built FSRU Sequoia from Greece’s...

More News Like This

Angola LNG cancels tenders due to production issues

Angola LNG has canceled tenders due to production issues at the 5.2 mtpa liquefaction plant in Soyo. "I can confirm...

Jera, Chevron ink CCS pact

Japan’s LNG trader and power generation firm, Jera, and US energy giant Chevron have signed a memorandum of understanding...

Chevron upgrading LNG fleet to further slash emissions

Chevron's shipping unit has contracted a unit of Singapore's Sembcorp Marine to install reliquefaction systems and other tech on...

Chevron, NewMed Energy approve budget for Leviathan FLNG

US energy giant Chevron and Israel’s NewMed Energy will invest $51.5 million for the pre-FEED work on a floating...