Chevron Corp. increased its natural gas and oil output by 9%-plus in October and November compared with the full final quarter of 2008, but the downstream segment was sharply lower on weaker refining margins, the oil major said late Monday.

The San Ramon, CA-based major is set to deliver its 4Q2009 report on Jan. 29. The interim production volumes, realizations and margins reported are based on October and November 2009 results, compared with performance in the final three months of 2008.

In the upstream division, gas and oil production worldwide jumped 9.2% to 2.77 million boe/d in October and November from 4Q2008. Compared with the average for 3Q2009, U.S. net production in the first two months of the final quarter of last year rose 14,000 boe/d, primarily in the Gulf of Mexico. Upstream profits are “in line” with results in 3Q2009, when the unit earned $3.65 billion, the producer said.

U.S. net natural gas production also jumped in October and November to 1.399 Bcf/d, versus 1.32 Bcf/d in 4Q2008. Domestic liquids output rose to 526,000 b/d from 399,000 b/d. Total U.S. upstream output was up at 759,000 boe/d from 619,000 boe/d in 4Q2008.

Average natural gas price realizations were $3.94/Mcf in the two-month period, well below the $5.23 average in 4Q2008, Chevron said.

Despite the gains on the upstream side, downstream results are forecast to be sharply lower for 4Q2009, “mainly due to significantly weaker refining margins,” Chevron said. The volume of crude oil processed by its refineries in October and November was down 6% in the United States and 0.6% internationally from the final three months of 2008. For the partial period, Chevron received an average $69.92/bbl for crude oil produced in the United States, up 36% from $51.43 for the full 4Q2008. Internationally it received an average $68.14/bbl, up from $46.79.

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