Oil producer Chevron Corporation(NYSE:CVX) said on Wednesday it would spend $36.7 billion next year on energy exploration and other investments including spends by its affiliates.
This budget is 12 percent higher than what the company had earmarked for 2012. The company added that about 90 percent of the budgeted amount would be set aside for upstream crude oil and natural gas exploration and production projects, while another 7 percent is for Chevron's downstream business that makes, transport and sell gasoline, diesel fuel and other refined products, fuel and lubricant additives, and petrochemicals.
One of the major projects which will be covered under the capital outlay is the multi-billion dollar liquefied natural gas project in Western Australia called Gorgon that had been approved last year.
Chevron has raised its cost estimate for the Gorgon foundation project to $52 billion, up from $37 billion, due in part to higher labour costs, logistics challenges, weather delays and the stronger Australian dollar.
The Gorgon project is expected to start in 2014 and the first LNG cargo would be ready in the first quarter of 2015, it added.
"While investment requirements have grown, oil prices, which directly impact the overall revenue stream, have increased by approximately 80 percent over the same time period," said Vice Chairman George Kirkland.
"In addition, the LNG nameplate capacity has increased by 4 percent to 15.6 million tons per year."