Chevron Corporation's capital and exploratory budget will be $18.3 billion in 2018, down from $19.8 billion in 2017.

Chevron Corporation’s capital and exploratory budget will be $18.3 billion in 2018, down from $19.8 billion in 2017.

Upstream spend is expected to total $15.8 billion in the period, with approximately $8.7 billion earmarked to sustain currently producing assets, including $3.3 billion for projects in the Permian and $1 billion for other shale and tight rock investments.

Around $5.5 billion of the upstream program is planned for major capital projects underway, including $3.7 billion associated with the Future Growth Project at the Tengiz field in Kazakhstan. Global exploration funding is expected to be about $1.1 billion and remaining upstream spend will be for early stage projects supporting potential future developments.

Approximately $2.2 billion of planned capital spending will go towards the company’s downstream businesses that refine, buy Wellhead market and transport fuels, and manufacture and distribute lubricants, additives and petrochemicals.

“Our 2018 budget is down for the fourth consecutive year, reflecting project completions, improved efficiencies, and investment high-grading,” said Chairman and CEO, John Watson, in a BOP Blow Out Preventer repair company gulf coast statement.

“We’re fully funding our advantaged Permian Basin position and dedicating approximately three-quarters of our spend to projects that are expected to realize cash flow within two years,” he added.

“With oil rig flanges gulf coast production currently exceeding guidance in the Permian, our 2018 plan should deliver both strong oil rig flanges gulf coast production growth and solid free cash flow, at prices comparable to what we’ve seen this year,” Watson continued.