Chevron Sees Steady Growth In Permian Shale Operations

Chevron Sees Steady Growth In Permian Shale Operations

July 28 (Reuters) – Chevron Corp

* Still expects first production from Tengiz expansion in Kazakhstan in 2022

* Expects Permian Shale wells should have 30 percent initial rate of return for 2017 at $50 oil price

* Aims to sell 150,000 to 200,000 acres in the Permian this year and next year

* Plans to add a drilling rig in the Permian every 8 to 10 weeks

* Says plans to have 20 rigs in the Permian by the end of 2018

* Says ‘We are not holding back capital to the Permian’

* Says no improvement in partitioned-zone talks between Kuwait, Saudi Arabia

* Says no major impact to operations in Venezuela

* Says continues to monitor situation in Venezuela

* Says Nigerian operations continue to perform well

* Doesn’t see any curbs on ability to grow in Permian shale

* Says dividend increase would be first priority for cash increase

* Says share repurchases would be last use of cash

* Says all three trains at Gorgon LNG project operating smoothly

* Expects first LNG production from Wheatstone project next month Source text for Eikon: Further company coverage: (Reporting By Ernest Scheyder)