Chevron reports surge in profits

Chevron plans to spend £50m a day on energy exploration

Record oil prices helped Chevron deliver a jump in profits, despite problems at its refining business.

Profits at the second biggest US oil firm rose 29% to $4.88bn (£2.47bn) in the last three months of 2007.

That was despite a $55m loss at its refining, marketing and transportation unit, which the company blamed on customers buying less petrol.

Earlier on Friday Exxon Mobil saw a quarterly profit of $11.7bn, and annual profits of $44.6bn - both new records.

Big projects

Oil and gas production fell 1.6%, but record oil prices more than compensated for that decline.

The company expects oil and gas output to rise 1.8% in 2008.

Two big fields are expected to start production this year, the "Blind Faith" field in the Gulf of Mexico and the "Agbami" project off the coast of Nigeria.

Last year it had to postpone four major projects due to technical problems.

Chief Executive David O' Reilly says his firm will spend $50m a day on searching for oil this year.

Chevron shares finished 0.9% lower at $82.49.