Chevron Corp said Wednesday it expects organic capital spending for consolidated subsidiaries to be $18-19 billion next year, at the lower end of its annual capex guidance of $18-21 billion through 2030.
On investor day on November 12 Chevron set a “structural cost reductions” goal of $3-4 billion by the end of 2026.
It expects the United States to account for $10.5 billion of next year’s projected capex, more than half of the total figure. “Nearly $6 billion is expected for U.S. shale and tight assets that include Permian, DJ and Bakken, underpinning anticipated U.S. production of more than two million barrels of oil equivalent per day”, Chevron said in an online statement Wednesday.
U.S. upstream capex is projected to be $8.9-9.2 billion. “Spend related to the power business [is] expected to be primarily incorporated into U.S. upstream segment, pending final commercial agreements”, Chevron noted.
“Global offshore capex is expected to be approximately $7 billion, primarily supporting growth in Guyana, Eastern Mediterranean and Gulf of America”, it said.
Upstream capex for 2026 is pegged at $17 billion. “Included in upstream spend is about $0.4 billion in capitalized interest, primarily related to Guyana assets”, Chevron said.
On September 23 operator Exxon Mobil Corp announced a positive final investment decision on the Hammerhead field in the Stabroek block offshore Guyana after receiving regulatory approvals, earmarking $6.8 billion for the 150,000 barrels per day (bpd) development.
Hammerhead represents the first project approved in Stabroek with Chevron as a partner. ExxonMobil and China National Offshore Oil Corp had tried to prevent Chevron’s entry into Stabroek by initiating arbitration, asserting their preemption rights. Preemption would have prevented Hess Corp from selling its stake to Chevron as part of Chevron’s acquisition of Hess. The arbitration ruling favored Chevron, as confirmed separately by Chevron and ExxonMobil in July.
Targeted to be put into production 2029, Hammerhead will grow Stabroek’s production capacity to 1.5 million bpd.
Hammerhead is the seventh project approved in Stabroek, with the fourth and biggest – the 250,000-bpd Yellowtail – started up earlier this year, as announced by ExxonMobil August 8.
ExxonMobil operates Stabroek with a 45 percent stake through ExxonMobil Guyana Ltd. Chevron’s Hess Guyana Exploration Ltd owns 30 percent. CNOOC Petroleum Guyana Ltd holds 25 percent.
Meanwhile Chevron’s downstream capex next year is expected to be $1 billion, nearly three-fourths for the U.S.
“Within total upstream and downstream budgets, about $1 billion is dedicated to lowering the carbon intensity of operations and growing new energies businesses”, Chevron said.
“Corporate and other capex is expected to be around $0.6 billion”.
Affiliate capex for 2026 is expected to be $1.3-1.7 billion. “Chevron Phillips Chemical Co LLC spend is anticipated to be nearly half of affiliate capex in support of two new world-scale facilities under construction and expected to start up in 2027”, Chevron said.
Chevron chair and chief executive Mike Wirth said, “Our 2026 capital program focuses on the highest-return opportunities while maintaining discipline and improving efficiency, enabling us to grow cash flow and earnings”.
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