Chevron preps for big 2027 exploration capex ramp
Oil & Gas Journal · Geert De Lombaerde ·
Vice-chairman Mark Nelson told analysts the operator is targeting about 20 wells annually because its opportunity set around the world is “the largest and highest-quality I have...
Chevron Corp., Houston, could increase its exploration capital budget by more than $500 million in 2027 as executives look to capitalize on strong commodity markets and build on an organizational shuffle that has centralized and accelerated decision-making.
Speaking after Chevron reported its third-quarter results, vice-chairman Mark Nelson told analysts that the company’s opportunities globally are “the largest and highest-quality I have seen in years.” Chevron has added more than 20 million acres to its portfolio since mid-2024 and deployed artificial-intelligence tools to more quickly assess promising development candidates.
In the third quarter, Nelson said, Chevron teams added six blocks in the Gulf of Mexico as well as sites in Angola, Nigeria, Guinea-Bissau, and Egypt. Going forward, he added, he expects Namibia, Equatorial Guinea, and Suriname to be among the regions Chevron adds to its list for exploration. That function was centralized as part of a broad corporate streamlining launched last year that also grouped the company’s offshore and shale assets into dedicated divisions and sought to save about $3 billion in costs. Nelson said the centralized group now uses “one global standard” to assess projects, which has sped up decisions and helped set the stage for next year’s ramp.
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