Chevron Announces $5.2 Billion Capital Spending Program

Chevron Corp. has announced a $5.2 billion capital and exploratory spending program for 2000. "Our spending program reflects continued confidence in our company's prospects for growth," said Chevron Chairman and CEO Dave O'Reilly. "We'll devote the majority of our capital dollars to developing the high potential of our extensive worldwide upstream portfolio." The 2000 plan is 16.5 percent less than estimated actual 1999 spending because of two acquisitions. The company plans to invest $3.6 billion, or 69 percent of total 2000 spending, in worldwide exploration and production. Spending in the U.S. will be $1.3 billion. The program includes funding for growth projects in the U.S., where deep-water gross production reached 98,000 bpd of oil and equivalent gas from the Gemini and Genesis fields at year-end 1999; and in Canada, where the company will participate in the Athabasca Oil Sands Project (20 percent interest). In the U.S., the development of a third project, Typhoon, has been authorized, with first oil production expected by mid-2001. In addition, six deep-water exploratory wildcat wells will be drilled this year. Chevron will also increase its participation in the U.S. power sector through increased investment in Dynegy Inc. The Canadian project is targeted to produce 155,000 bpd of bitumen for upgrading to high-quality synthetic crude oil. First production is scheduled for late 2002.