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UPDATE 1-Chevron expects production to rise by 4-7 pct in 2018

(Adds CEO quote, production details shares, capital spending plan)

March 6 (Reuters) - Chevron Corp said on Tuesday it expects 2018 production to be 4 percent to 7 percent higher than last year, excluding asset sales and on oil prices at $60 a barrel.

The company also revised its three-year annual capital spending plan to $18 billion to $20 billion, slightly lower at the midpoint than a previous estimate, and said it was looking to resume share buybacks.

Energy companies have been trying to increase production while minimizing costs as oil prices rise. Companies have largely been cutting expenses since crude prices collapsed in 2014.

High margin barrels of oil are expected to increase by more than 200 mboe/d in 2018, Chevron Vice President Jay Johnson said at an analyst day presentation.

Chevron expects Permian production of 500,000 boe/d by end of 2020 and 600,000 boe/d by 2022.

"We intend to grow free cash flow in 2018 and thereafter," Chief Executive Michael Wirth said.

"Even with no commodity price appreciation, we expect to deliver stronger upstream cash margins and production growth."

The company, which had halted its buyback program in 2015 to conserve cash amid a slump in oil prices, did not give any additional details on the buyback, but said it will be in a place to start the program as it generates more cash.

Chevron's shares were up 0.84 percent at $114.10 in light premarket trading on Tuesday. (Reporting by Ernest Scheyder in Houston and Yashaswini Swamynathan in Bengaluru Editing by Saumyadeb Chakrabarty)