Chevron doubles its offshore investments

Overseas staff

SAN RAMON, Calif. – Chevron Corp. reported a profit of $11.6 billion for the second quarter of 2022, compared to $3.1 billion in the second quarter of 2021.

The current quarter included charges associated with early contract termination of $600 million, pension settlement costs of $11 million and gain on sale of assets of $200 million, according to the report on the company’s second quarter 2022 results. Sales and other operating income in the second quarter of 2022 were $65 billion, compared to $36 billion a year ago.

“The second quarter’s financial performance improved as we achieved a return on capital employed of 26%,” said Mike Wirth, president and CEO of Chevron.

The company strengthened its balance sheet, lowering its debt-to-equity ratio to less than 15% and increased the upper limit of its annual share buyback range to $15 billion, according to the report.

“We have more than doubled our investments compared to last year to develop both traditional and new energy activities,” added Wirth.

Investments abroad

This investment includes total capital expenditures and exploration and acquisition-related expenditures as Chevron completed its acquisition of Renewable Energy Group Inc. and completed the formation of a renewable fuels joint venture with Bunge North America Inc.

During the second quarter, the company also sanctioned the Ballymore project in the deep waters of the US Gulf of Mexico (GoM), which is expected to require a gross investment of approximately $1.6 billion. The field is expected to be produced by an existing facility with an allocated capacity of 75,000 bpd of crude oil.

The company also advanced its carbon capture and storage (CCS) business this quarter by launching a CCS project to reduce the carbon intensity of its upstream operations in California and forming an expanded joint venture to develop the hub. Bayou Bend CCS in Texas, with the goal of becoming one of the first offshore CCS projects in the United States.

Additionally, leveraging growing U.S. natural gas production and its global LNG value chain, Chevron has signed agreements to export 4 MMtonnes per year of LNG out of the U.S. Gulf Coast, from 2026.