American energy company Chevron revealed plans to spend between $18.5bn and $19.5bn in the upcoming year, with the bulk of that to be allocated on upstream operations.

Chevron’s 2024 budget includes a projected organic capital expenditure (capex) of $15.5-16.5bn for consolidated subsidiaries.

The company has allocated a budget of around $3bn to be spend on its affiliates.

Almost 50% of the capex for affiliates is meant for the Tengizchevroil FGP/WPMP project in Kazakhstan. The start-up for the WPMP field conversion is anticipated to commence in the first half of 2024.

Roughly one-third of the capex is allocated to Chevron Phillips Chemical. This includes funding for projects such as the Golden Triangle polymer project and the Ras Laffan petrochemical project.

For upstream, Chevron will spend around $14bn. Of the intended spending, its US operations will receive two-thirds, with approximately $6.5bn earmarked for the development of the company’s shale and tight portfolio.

Around $5bn from the same allocation is set aside for the development of the Permian Basin.

Additionally, approximately 25% of the US upstream capital expenditure is designated for projects in the Gulf of Mexico. This includes the Anchor project, which was sanctioned by the company in December 2019, and currently anticipated to produce its first oil in 2024.

Chevron expects a downstream capital expenditure of approximately $1.5bn in 2024, with 80% of this allocation directed towards the US.

The corporate and other capital expenditure is projected to be around $500m.

Both the upstream and downstream budgets include an allocation of approximately $2bn for lower carbon capital expenditure aimed at reducing the carbon intensity of conventional operations and expanding into new energy business segments.

The company said that the start-up of its $950m Geismar renewable diesel expansion project in Louisiana is slated for 2024.

Chevron Chairman and CEO Mike Wirth said: “We’re maintaining capital discipline in both traditional and new energies.

“These investments are expected to underpin durable free cash flow growth to support our objective of returning more cash to shareholders.”

In late October this year, the company signed an all-stock deal worth $53bn to acquire rival oil and gas company Hess. Subject to regulatory approvals and other conditions, the deal is anticipated to close in the first half of 2024.

Following closing of the transaction, Chevron’s annual capex budget is estimated to be $19-$22bn.