Chevron
to begin oil production in Brazil
Petroleumworld
CARACAS
Petroleumworld.com 01 27 06
San
Ramon-based Chevron Corp., will spend more than $2 billion to
begin oil production in Brazil. Output of about 100,000 barrels
a day from the Frade field may start in early 2008. That would
be the equivalent of 3.9 percent of the company's overall oil
and natural gas output, based on third-quarter production figures.
A company
official said Chevron will likely spend $1.5 billion to $2 billion
in Brazil on development in the next five years. The company hopes
Brazilian finds, together with new projects in Kazakhstan, western
Africa and the Gulf of Mexico, will halt a two-year decline in
reserves.
Chevron
Corp. reports earnings for the fourth quarter on Friday, Jan.
27.
Analysts polled by Thomson Financial expect the company to post
quarterly earnings of $1.89 per share.
Street
analysits estimates for the quarter are for $1.89/share and $6.61
for the full year. CVX has been aggressively returning money to
its shareholders through its share buyback program and 12.5% dividend
increase. The company has also been reducing debt. CVX has estimated
previously that the hurricanes cost the company about $600 million
in lost profits and repairs. CVX should update these figures for
the fourth quarter. Street estimates for revenues are at $51 billion.
Revenues may be light, as oil prices declined in the quarter.
It seems unlikely that the shortfall was made up by natural gas
revenue, since they only constitute about one-fifth of total revenue.
Petroleumworld
01/26/06
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