Chevron-Unocal 2006 capex spending to reach $65-75 million in Alaska

The Chevron-Union Oil Company of California net capex spend for Alaska for 2006 will be a range of $65 million to $75 million, Alaska spokeswoman Roxanne Sinz, told Petroleum News Dec. 19.

Chevron announced a $14.8 billion capital and exploratory spending program for 2006 earlier in December, a 35 percent increase compared with estimated expenditures of approximately $11 billion in 2005. The budget includes $4.9 billion investment in the United States, a $1.1 billion increase over 2005 estimated spending.

“Our overall investment program continues to advance our strategies to build legacy positions in key producing regions and commercialize our significant natural gas resource base,” said the company’s chairman and CEO, Dave O’Reilly.

Chevron said some 75 percent of its total capital and exploratory spending, $11.3 billion, is for upstream investment in exploration, production and natural gas-related projects, including $3.3 billion in the United States. Chevron began construction in 2005 on two Gulf of Mexico projects, Tahiti and Blind Faith.

The Chevron takeover of Union Oil Company of California was approved by Chevron shareholders in August.

The company’s Alaska interests range from leases in the Arctic National Wildlife Refuge and Point Thomson on the eastern North Slope to production from the Prudhoe Bay, Kuparuk River and Duck Island units on the central North Slope.

In Cook Inlet the company operates the Swanson River, Trading Bay and South Granite Point oil fields as well as being a major natural gas supplier for Southcentral Alaska from a one-third interest in the Beluga River field, the company’s oil fields and smaller gas fields on both the west side of Cook Inlet and on the Kenai Peninsula.

—Kristen Nelson