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Chevron (NYSE:CVX) said Wednesday it expects total capital spending for FY 2024 will rise ~14% Y/Y to $15.5B-$16.5B, plus an additional $3B for affiliate capex.
Chevron (CVX) said upstream spending next year will total ~$14B, with two-thirds is allocated to the U.S., including $5B planned for development in the Permian Basin, $1.5B for other shale and tight oil projects, and $3.5B planned for projects in the Gulf of Mexico, including the Anchor project, which is expected to achieve first oil in 2024.
The company allocated $2B for capex to lower the carbon intensity of traditional operations and grow new energy business lines; its Geismar renewable diesel expansion project is expected to launch production in 2024.
Nearly half of affiliate capex is planned for Tengizchevroil’s FGP/WPMP project in Kazakhstan; WPMP field conversion is expected to begin start-up in H1 2024.
Chevron (CVX) previously said it planned to keep its capex budget in a $14B-$16B range through 2027, but when it closes its proposed acquisition of Hess next year, it expects annual capital spending of $19B-$22B.