Chevron is well positioned to deal with difficult market conditions given its strong balance sheet, numerous new growth projects coming onstream and a disciplined approach to cost management, executives said at the corporation’s annual meeting with financial analysts in New York in March. ‘We are continuing to execute our key strategies,’ Dave O’Reilly, chairman and CEO, told the meeting. ‘We’re moving legacy projects to development, we’re moving resources to reserves, and we’re continuing to deliver our industry-leading exploration program.’
George Kirkland, executive vice president, upstream and gas, added: ‘Over the next two years, we expect new project startups and continued ramp-ups to contribute production of 650,000 barrels per day. In addition, the depth of our portfolio provides us with the flexibility to optimize project timing to take advantage of lower expected capital costs.’
Outlining future growth, Kirkland focused on Chevron’s LNG portfolio, particularly Gorgon and Wheatstone in Australia, as well as the crude oil opportunities in the Lower Tertiary trend in the deepwater US Gulf of Mexico. ‘We’ve made substantial progress on both Gorgon and Wheatstone in the past 12 months. We expect Gorgon to be sanctioned during the second half of 2009, and Wheatstone is advancing toward front-end engineering and design later this year,’ he said.
Referring to the company’s high-profile Jack and St Malo discoveries in the Gulf of Mexico, Kirkland said FEED work has begun for a production facility that will have a capacity of between 120,000-150,000boe/d. The facility will co-develop the Jack field and the nearby St Malo, which are estimated to have combined recoverable resources in excess of 500 million barrels.
OE-April 2009
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