Chevron plans to spend a total of $39.8 billion in 2014, cutting its capital and exploratory expenditure from the $42 billion estimated to be spent this year, the company announced.
This year's budget also included $4 billion for resource acquisitions that were not included in the original budget. In 2014, however, no major resource acquisitions are planned so the company intends to cut some of the budget. This means that 2013 will be a peak year for Chevron's investments, the company chief executive officer John Watson said.
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Despite the slight fall in budget, Chevron expects an increase in investments in several liquefied natural gas projects in Australia. Reaching the final stage of preparations, the biggest and most ambitious project, the Gorgon liquefied natural gas (LNG) project, is set to start commercial production in 2015. The plant is estimated to cost $54 billion, a significant part of which should be spent in 2014. The Gorgon will have a maximum capacity of 400,000 barrels per day of LNG production, Chevron said.
Chevron explained that as much as 90 percent of the capital spending next year is intended for upstream crude oil and natural gas exploration and production projects. A further eight percent will be allocated to downstream projects, such as transporting and selling gasoline, diesel and other refined products.