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Chevron expects 28 new projects in Nigeria

By on June 13, 2012

FOR the next three years, Chevron Corporation is expecting to launch 28 new projects with a Chevron share of capital of more than $250 million each (about N3.8 billion), from its areas of operation, including Nigeria, Angola and Gulf of Mexico.

The oil multinational at the 2012 yearly Meeting of Stakeholders, where it discussed future growth plans, said Chevron has a share of capital exceeding $1 billion (N155 billion) in 11 of the projects.

“Chevron has already started two of its four 2012 major capital projects in the Gulf of Mexico and Nigeria. Two other major capital projects are scheduled to start up later this year: one in Angola and one in Nigeria,” it stated.

In addition, the company expects to make final investment decisions on 12 more projects, each with a Chevron share in excess of $1 billion in capital within the next three years.

Vice Chairman and Executive Vice President for Upstream and Gas, George Kirkland, said Chevron is investing $32.7 billion (about N5 trillion) in 2012, with approximately 87 per cent of that amount directed to upstream activities as the company continues to develop an enviable project queue.

Chevron is increasing exploration activity around the world including evaluation of significant acreage recently added to its upstream portfolio. Downstream investments comprise 11 per cent of the total capital expenditure programme.

Appreciating the company’s performance in the recent period, Chairman and Chief Executive Officer, Chevron, John Watson, said: “We have advantages today because of the thoughtful, deliberate actions we have taken and the capabilities we have built over many years. We are also looking ahead to the next decade, adding opportunities to our portfolio that are expected to drive yet another generation of profitable growth.”

Watson highlighted Chevron’s strong 2011 financial and operational performance, which produced earnings of $26.9 billion, a 21.6 per cent return on capital employed and cash flow from operations of $41 billion.

He said, Chevron led its peers in total stockholder returns over the past five years, besting the S&P 500. The company increased its quarterly dividend by 12.5 per cent in 2011. Chevron announced another quarterly dividend increase (11 per cent) at the end of April 2012. The year 2012 also marks 100 years of continuous regular dividend payments for our stockholders.

He reinforced Chevron’s long-standing culture of safety and environmental stewardship, and resulting industry-leading performance. He also highlighted Chevron’s commitment to partnerships that address health, education and economic development issues in the communities where the company operates, and Chevron’s global social investments of approximately $1 billion over the past six years.