Chevron Corporation today announced several steps it is taking in response to market conditions occasioned by the ravaging coronavirus also known as COVID-19.
The company is, therefore, reducing its guidance for 2020 organic capital and exploratory spending by 20 percent to $16 billion.
The reductions are expected to occur across the portfolio and are estimated as $2 billion in upstream unconventionals, primarily in the Permian Basin; $700 million in upstream projects and exploration; $500 million in upstream base business spread broadly across our U.S. and international assets; and $800 million in downstream & chemicals and other.
“With an industry-leading balance sheet and a flexible capital program, we believe Chevron is resilient and positioned to withstand this challenging environment,” said Chevron Chairman and CEO Michael Wirth.
“Given the decline in commodity prices, we are taking actions expected to preserve cash, support our balance sheet strength, lower short-term production, and preserve long-term value.”
Source: Business Day