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Chevron unveils $16 billion CAPEX budget for 2024

Chevron announced an expected organic capital expenditure range of $15.5 to $16.5 billion for consolidated subsidiaries as well as an affiliate capital expenditure budget of approximately $3 billion for 2024.

Upstream spending in 2024 is expected to be about $14 billion, and of this planned expenditure, two-thirds will be allocated to the US. That includes approximately $6.5 billion to develop Chevron’s US shale and tight portfolio, of which around $5 billion is planned for Permian Basin development. About 25% of US upstream is planned for projects in the Gulf of Mexico, including the Anchor project, which is expected to achieve first oil in 2024.

Downstream is expected to be roughly $1.5 billion, with 80% allocated to the US. Corporate and others are projected to be about $0.5 billion.

Included in the upstream and downstream budgets is approximately $2 billion in lower carbon to lower the carbon intensity of traditional operations and grow new energy business lines. Chevron’s Geismar renewable diesel expansion project is expected to start in 2024.

Nearly half of the affiliate budget is planned for Tengizchevroil’s FGP / WPMP project in Kazakhstan and about a third is planned for Chevron Phillips Chemical Company, including the Golden Triangle Polymer Project and Ras Laffan Petrochemical Project. WPMP field conversion is forecasted to begin in the first half of 2024.

With the acquisition of PDC Energy, Chevron announced an annual guidance range of $14 to $16 billion through 2027. On 23 October 2023, Chevron announced that it had agreed to acquire Hess Corporation. This acquisition is expected to close in the first half of 2024, subject to Hess shareholder approval, regulatory approvals and other customary closing conditions. Following the closing of the acquisition, Chevron’s annual budget is expected to be between $19 and $22 billion.

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