By Victor Uchechukwu
We are in a better position to grow our free cash flow by $6 billion to $8 billion by 2026, and lower expenses by “a couple billion dollars
The United States oil and gas major has announced that it would consolidate its Oil, Products & Gas segments into Upstream and Downstream, Midstream & Chemicals segments, to be led by Mark Nelson, the current executive vice president of the Oil, Products & Gas unit.
“Our new organizational structure and leadership appointments are designed to improve our operational efficiency and position Chevron for sustained growth,” CEO Mike Wirth has said in a statement.
Reports disclose that the mass layoffs were part of the company’s efforts to cut costs. Chevron had last month announced that it was in a better position to grow its free cash flow by $6 billion to $8 billion by 2026, and lower expenses by “a couple billion dollars”. America’s second-largest oil and gas company expects to achieve these results looking at its expanded oil production projects in Kazakhstan, and its growth in US shale and offshore Gulf of Mexico.
The US major has also projected oil production growth in the Gulf of Mexico to clock in at 300,000 barrels per day by 2026, up from 200,000 in 2024. Recall that back in August, Chevron was reported to have produced its first oil from a pioneering US Gulf of Mexico deepwater field under extreme pressures. The field is expected to produce, all things being equal, up to 75,000 barrels of oil per day at its peak, with the company lining up two more offshore projects.
Meanwhile, Chevron is looking to close the gap between it and Exxon Mobil Corp. (NYSE:XOM) through the acquisition of Hess Corp. (NYSE:HES). Just last month report says, the Federal Trade Commission (FTC) finalized a consent order that resolves antitrust concerns surrounding Chevron Corporation’s acquisition of oil producer Hess Corporation. Meanwhile Hess CEO John Hess was reported to have expressed confidence that the company’s planned $53 billion sale to Chevron would be completed.
“We’re very confident that the merger is going to go through and we’re getting prepared for that,” Hess was quoted to have said at the Goldman Sachs Global Energy, Clean Technologies & Utilities Conference.