Chevron Corp Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : I have 2 questions. I think one for Jay, one for Pierre. Jay, you mentioned about the problem in Gorgon. It's a bit surprising given it's a new machine. I mean the train has only come on stream for, say, less than 5 years and that you have this problem. So is the problem is a design issue or that is just poor workmanship? And also whether the same vendor is applying those to the Train 1 and Train 3 as well as in Wheatstone? And if they are, have you already did some inspection on those unit?

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : And Jay, Train 1 and Train 3 already went through the full turnaround recently, right, just in the last year or 2? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2020 / 3:00PM, CVX.N - Q2 2020 Chevron Corp Earnings Call

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : So that if that's a risk, yes, Train 3 has more of the risk than Train 1 then because I assume that if there's an issue, when you went through the turnaround in Train 1 you should have already discovered?

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. So Train 3...

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : Sure. Second question is for Pierre. I heard about, say, that improving return is one of the top priority for the company. We appreciate that. But we then hear that we have conflicting maybe priority because from a cash flow standpoint, you are cutting your CapEx in Permian, and Permian actually is your highest return project, while that you're still investing in Anchor and Tengiz, which has clearly that much lower return comparing to Permian. So how exactly that the company is going to be able to raise your return when you are not investing at least in the next maybe year or 2 in the most profitable project? I mean what steps that you will be able to take?