…concludes joint venture expansion
Chevron Corporation on Wednesday provided an overview of the company’s business plans and operations at its annual stockholder’s meeting.
“We are focused on delivering higher returns, lower carbon and superior shareholder value,” said Michael Wirth, Chevron’s chairman and CEO.
“Our strategy is clear: leverage our strengths to deliver lower carbon intensity energy to a growing world. Our capabilities, assets, and customers are distinct advantages. We’re building on these strengths as we aim to lead in lower carbon intensity oil, products, and natural gas, and to advance new products and solutions that reduce the carbon emissions of major industries.”
In the past year, Chevron completed the transformation of the organization, integrated Noble Energy’s people and assets, and formed Chevron New Energies.
The company is working toward achieving updated targets to reduce the carbon intensity of operations. “We intend to be a leader in carbon-efficient production of traditional energy while building new energy businesses, where we have competitive advantages,” Wirth added.
Chevron announced the proposed acquisition of Renewable Energy Group, in February, which is expected to be completed around the middle of this year.
“Chevron is doing its part to grow domestic supply, with U.S. oil and gas production up 10 percent over the first quarter of last year,” Wirth said. “Our total of 2022 capital spending plus announced acquisitions is expected to be more than 50 percent higher than 2021.”
The company maintains a clear and consistent approach throughout the business cycle, including its top financial priorities: growing the dividend; reinvesting to grow future cash flows; strengthening the balance sheet; and returning excess cash to stockholders.
“We look to the future with optimism, applying over 140 years of experience to tackle the difficult problems that must be solved,” Wirth concluded.
Meanwhile Chevron, Talos and Carbonvert announced the closing of previous joint venture expansion of the Bayou Bend CCS project offshore Jefferson County, Texas
Meanwhile,Chevron through its Chevron New Energies division, Talos Energy Inc, through its Talos Low Carbon Solutions division, and Carbonvert, Inc. on Wednesday announced the execution of definitive documentation and closing of the expanded joint venture to develop the Bayou Bend CCS offshore carbon capture and sequestration (“CCS”) hub, effective May 1, 2022.
Under the terms of the transaction, Chevron has acquired a 50 percent stake in the expanded Bayou Bend CCS joint venture for gross consideration of $50 million to Talos and Carbonvert, consisting of $30 million of gross upfront cash and up to $20 million of gross capital cost reimbursement, expected to cover Talos and Carbonvert capital expenditures through the project’s final investment decision (“FID”). Equity interests in the joint venture are now 25 percent Talos, 25 percent Carbonvert, and 50 percent Chevron, and Talos is the operator. The three companies have also established an Area of Mutual Interest (“AMI”) over the full ~231,000-acre Jefferson County offshore region contemplated in the State of Texas’s original request for proposal, aligning the parties for future expansion opportunities