U.S. oil major Chevron Corp said on Tuesday it expects its annual production to grow in the range of 3 percent to 4 percent through 2023, boosted by strong performance in the country's top shale region, the Permian basin.
The company expects shale production from the basin to reach 600,000 barrels per day (bpd) by the end of 2020, and 900,000 bpd by the end of 2023.
Chevron’s Permian production reached 377,000 barrels per day in the fourth quarter of 2018, up 84 percent compared with the same period a year earlier.
The company raised its estimate of its reserves, saying it has 16.2 billion barrels of recoverable resources in the Permian, located in Texas and New Mexico, up from 9 billion.
Like its bigger rival Exxon Mobil Corp, Chevron has moved away from conventional exploration outside the United States to focus on shale oilfields at home. Chevron, though, holds legacy acreage in the Permian and has operated there for decades.
"Our position in the Permian Basin just continues to get better," said Chief Executive Mike Wirth at an annual meeting with analysts on Tuesday morning.
The San Ramon, California-based company expects to sell assets worth $5 billion to $10 billion https://bit.ly/2tOctMy between 2018 and 2020, including production assets in Denmark, Azerbaijan and Britain's North Sea. The company's annual capital expenditure is expected to be in the range of $19 billion to $22 billion between 2021 and 2023.
(Reporting by John Benny in Bengaluru and Jennifer Hiller; Editing by Shinjini Ganguli and Bernadette Baum)
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