Chevron To Spend $22.6B On Upstream Projects

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Chevron, the second-largest U.S. oil company, said it will spend $22.6 billion on upstream projects this year, a 20% increase from 2010 as the company looks to take advantage of higher oil prices and boost investments in major liquefied natural gas projects in Australia and Angola.

California-based Chevron (CVX) said it is expecting 2011 output of 2.79 million barrels of oil equivalent per day this year based on oil prices of $79 a barrel, according to Platts. Chevron is hoping to boost its output to 3.3 million barrels per day by 2017.

Chevron, which sold its Pembroke refinery in the U.K. last week, as generated some $6 billion since 2005 after reducing its downstream exposure, Platts reported. The company is looking to focus on projects such as the $37 billion Gorgon LNG project in Western Australia, a project Chevron has called one of the centerpieces of its global growth plans in the coming years.

Chevron believes it can be the fourth-largest LNG producer in the world by 2020 and the second-largest among entities that are not state-controlled. Exports from Gorgon are expected to commence in 2014.