Chevron to invest $4 bln in Permian

USA

SINGAPORE, September 25, 2017 – Super-major Chevron is planning a USD 4-billion investment in the USA’s Permian Basin next year, international media reported on Monday.

“We will be investing roughly USD 4 billion, next year, of capital in the Permian Basin, and we plan to grow production over the next several years to well in excess of 400,000 [boepd],” Ryan Krogmeier, the company’s vice-president of crude supply and trading, told a conference, cited by Reuters. “The Permian is the powerhouse [of US crude output growth].”

The company expects total output from all companies operating in the Permian to rise to 3.8 million boepd in 2020, up from current levels of 2.4 million boepd, the report added.

The news came days after Total said on Friday that it would be joining Chevron in seven prospects in two Gulf of Mexico deepwater plays. Though a price tag for the deal was not disclosed, the French super-major added that its participation in the wells would be between 25% and 40%.

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