Chevron and Phillips 66 have announced capital and investment programs totalling some $40bn for 2013.
Approximately 90% of Chevron's annual budget - around $33bn of capital investment - will be focused on upstream oil and natural gas exploration and production projects. Major capital projects will continue in Nigeria, Angola/Republic of Congo, Kazakhstan/Russia, Brazil, Canada, the UK and China.
Chevron affiliates will also provide $3.3bn of planned expenditures. Some of the investment program includes projects currently under construction, such as the Australian LNG projects and United States deepwater developments.
A further $2.7bn is budgeted for downstream operations in 2013, with approximately $1bn being set aside for technology, power generation and other corporate activities.
Meanwhile North American's oil and gas production revolution has led to Conoco spin-off, Phillips 66, setting up a master limited partnership (MLP) along with a $3.7bn total capital program (up six percent on 2012) and increased use of advantaged feedstocks.
The capital program includes Phillips 66’s portion of planned capital spending by DCP Midstream, Chevron Phillips Chemical Company (CPChem) and WRB Refining along with other consolidated investments.
The formation of the MLP will include a a portion of the company's transportation assets and may include certain product and crude pipelines and terminals, rail cars and other rail infrastructure, as well as natural gas liquids (NGL) assets.
According to Chairman and CEO, Greg Garland, Phillips 66 “expect to use the master limited partnership as an efficient vehicle to fund growth investments in the transportation and midstream sectors.”
Since becoming an independent company in May 2012, Phillips 66 has announced plans to increase its quarterly dividend by a total of 56% and to repurchase $2bn-worth of outstanding common stock.