|Highlights of the Capital and Exploratory Spending Program|
|Chevron 2014 Planned Capital and Exploratory Expenditures||$ Billions|
|TOTAL (Including Chevron’s Share of Expenditures by Affiliated Companies)||39.8|
|Expenditures by Affiliated Companies||(4.8)|
|Cash Expenditures by Chevron Consolidated Companies||35.0|
Planned capital spending is also directed toward improving crude oil and natural gas recovery and reducing natural field declines from existing producing assets throughout the world. About 30 percent of the Upstream capital program is allocated to highly profitable development wells and other projects associated with current producing assets. The 2014 base program includes an increase in activity across several producing regions of North America as well as in Thailand and Indonesia.In Australia, the Gorgon project has been under construction for four years and is almost 75 percent complete. The current estimate for the cost of the foundation project is US$54 billion (AU$55 billion), with plant startup and first gas planned for mid-2015. “Gorgon project economics are attractive,” said Vice Chairman George Kirkland. “We continue to make steady progress against key project milestones and are applying lessons learned to our Wheatstone development which is almost 25 percent complete. Approximately 75 percent of our combined LNG offtake from the two projects is committed under firm, long-term sales and purchase agreements. These LNG developments are two of our most important future legacy assets, representing approximately 400,000 barrels a day of net production at full capacity. They will be substantial contributors to our cash flow for decades to come.” Kirkland added: “Our focus is on developing resource projects that grow shareholder value. For instance, we are steadily increasing activity levels to develop shale and other tight resources in Canada’s Duvernay, the Vaca Muerta in Argentina and the Permian Basin of the United States. We are very pleased with our global unconventional acreage position.” In the Gulf of Mexico projects under development include Jack/St. Malo, Big Foot, and Tubular Bells. The Jack/St. Malo hull has been moored at the offshore location and is on schedule for a 2014 startup. The Big Foot project is forecasting a third quarter 2014 tow to location and a second quarter 2015 start-up.
Upstream spending in 2014 for major capital projects also includes:
- Kazakhstan/Russia – advancement of the Tengiz Future Growth and Wellhead Pressure Management Projects (Kazakhstan) and the Caspian Pipeline expansion (Kazakhstan, Russia)
- Nigeria – further development of the Usan and Agbami deepwater fields
- Canada – Hebron offshore development and advancement of Kitimat LNG
- Angola, Republic of the Congo – development of Mafumeira Sul (Angola) and Moho Nord (Republic of the Congo)
- Argentina – advancement of the YPF arrangement for the development of the Vaca Muerta shale
- United Kingdom – advancement of the Clair Ridge and Alder projects
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. Chevron is based in San Ramon, California. More information about Chevron is available at www.chevron.com.CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This press release contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “budgets,” “outlook” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices; changing refining, marketing and chemicals margins; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of equity affiliates; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather or crude oil production quotas that might be imposed by the Organization of Petroleum Exporting Countries; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant investment or product changes required by existing or future environmental statutes, regulations and litigation; the potential liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets and gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; and the factors set forth under the heading “Risk Factors” on pages 28 through 30 of the company’s 2012 Annual Report on Form 10-K. In addition, such results could be affected by general domestic and international economic and political conditions. Other unpredictable or unknown factors not discussed in this press release could also have material adverse effects on forward-looking statements.