US oil and gas giant Chevron said Thursday it would slash its 2016 capital spending budget to $26.6 billion, down 24 percent as compared to the company’s capital and exploratory investment this year.
Included in the 2016 program are $4.5 billion of planned expenditures by Chevron’s affiliates.
Chevron, which is expected to start its giant Gorgon and Wheatstone LNG projects in Australia next year, said 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.
“Our capital budget will enable us to complete and ramp-up projects under construction, fund high return, short-cycle investments, and preserve options for viable long-cycle projects,” said Chevron’s 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.”
LNG World News Staff