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Table of Contents
1 2010 at a Glance 2 Financial Information
11 Highlights 14 United States 18 Other Americas Africa 21 25 Asia 32 Australia 34 Europe 36 Gas 37 Operating Data
47 Highlights 48 Refining and Marketing 50 Lubricants 50 Trading 51 Chemicals 52 Transportation 53 Operating Data
59 Technology 60 Power Generation 60 Chevron Energy Solutions 61 Mining
62 Glossary of Energy and Financial Terms 63 Additional Information 64 Organizations
Cover photo: A derrick barge lowers the Platong Gas II living quarters onto the topside utility deck, Platong Field, Gulf of Thailand. Inside front cover photo: The Platong Gas II living quarters after installation in the Gulf of Thailand.
This publication was issued in March 2011 solely for the purpose of providing additional Chevron financial and statistical data. It is not a circular or prospectus regarding any security or stock of the company, nor is it issued in connection with any sale, offer for sale of or solicitation of any offer to buy any securities. This report supplements the Chevron Corporation 2010 Annual Report to stockholders and should be read in conjunction with it. The financial information contained in this 2010 Supplement to the Annual Report is expressly qualified by reference to the 2010 Annual Report, which contains audited financial statements, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and other supplemental data.
2010 at a Glance
Corporate Strategies Financial-return objective – Create shareholder value and achieve sustained financial returns from operations that will enable Chevron to outperform its competitors. Enterprise strategies – Invest in people to strengthen organizational capability and develop a talented global workforce that gets results the right way. Execute with excellence through rigorous application of the company’s operational excellence and capital stewardship systems and disciplined cost management. Grow profitably by using competitive advantages to maximize value from existing assets and capture new opportunities. Major business strategies – Upstream – grow profitably in core areas, build new legacy positions and commercialize the company’s equity natural gas resource base while growing a high-impact global gas business. Downstream – improve returns and grow earnings across the value chain. The company also continues to utilize technology across all its businesses to differentiate performance and to invest in profitable renewable energy and energy efficiency solutions. Accomplishments Corporate Safety – Achieved the company’s safest year ever, setting new world-class safety records in the daysaway-from-work performance metric in both Upstream and Downstream operations. Financial – Achieved the highest operating cash flows in the company’s history, at approximately $31 billion, and a total stockholder return that led the peer group for the previous five-year period. Dividends – Paid $5.7 billion in dividends with 2010 marking the 23rd consecutive year of higher annual dividend payouts. Annual average dividend growth over the period was 7 percent. Capital and exploratory expenditures – Invested $21.8 billion in the company’s businesses, including $1.4 billion (Chevron share) of spending by affiliates. Announced 2011 projected outlays of $26.0 billion, including $2.0 billion of affiliate expenditures. Focus continues on exploration and production activities. Stock repurchase program – Resumed the company’s common stock repurchases in the fourth quarter, acquiring $750 million of the company’s shares. Upstream Exploration – Achieved an exploration drilling success rate of 57 percent. Results included several natural gas discoveries offshore western Australia. Additionally, acquired offshore exploration leases in China, Liberia, Turkey and the United States and captured of shale gas acreage in Canada, Poland and Romania. Production – Produced 2.763 million net oil-equivalent barrels per day, approximately a 2 percent increase over 2009, with about 75 percent of the volume outside the United States in more than 20 different countries. Acquisition – Announced plans to acquire Atlas Energy, Inc., providing a shale gas acreage position in the Marcellus Shale, primarily located in southwestern Pennsylvania. (Acquisition completed in February 2011.) Major projects – Continued progress on the company’s development projects to deliver future production growth. Achieved first production at the deepwater Perdido Regional Development Project and the Athabasca Oil Sands Project Expansion and continued to increase production at the Tengizchevroil Sour Gas Injection/ Second Generation Plant Project in Kazakhstan. The company also reached final investment decision on a number of major capital projects, including Jack/St. Malo, Big Foot and Tahiti 2 in the Gulf of Mexico; PapaTerra in Brazil; and expansion of the Caspian pipeline in Kazakhstan and Russia. Natural gas projects – Delivered first gas from the Escravos Gas Project Phase 3A in Nigeria. In Australia, continued construction on Barrow Island and awarded approximately $25 billion of contracts for materials and services for the Gorgon Project. The company also executed additional binding and nonbinding agreements with Asian customers for the delivery of liquefied natural gas from the Gorgon and Wheatstone projects. Downstream Refinery upgrades – Completed project start-ups, including the Pascagoula, Mississippi, refinery continuous catalytic reformer and the Yeosu, South Korea, gas-oil hydrocracker. Construction also began on a processing unit designed to further improve the El Segundo, California, refinery’s reliability, high-value product yield and flexibility to process a range of crude slates. Chemical – Commenced operations on the ethylene cracker and polyethylene/normal alpha olefins plants in Qatar. Continued construction on a petrochemical project in Saudi Arabia with start-up expected in late 2011. Sale of nonstrategic assets – Sold a 23.4 percent ownership interest in Colonial Pipeline in the United States. Additionally, concluded the sales of businesses in Malawi, Réunion and Zambia and 21 product terminals. Financial Highlights:
• Sales and other
operating revenues $198 billion
• Net income attributable
to Chevron Corporation $19.0 billion $9.48 per share – diluted
• Return on capital employed
• Return on stockholders’
• Cash dividends
$2.84 per share
Chevron Corporation 2010 Supplement to the Annual Report
3% 25.53 76.1% 33.2% 25.77 2.935 2.402 5.958 5.6 100.6% 19.84 2.579 148.0 10 0.373 11.12 55.1% 13.80 2.0 30 50.50 1.0 06 07 08 09 10 0 Debt (left scale) Stockholders’ Equity (left scale) Ratio (right scale) 2 Chevron Corporation 2010 Supplement to the Annual Report .775 29.76 1.83 1.99 1.6% 13.088 2.4% 50.237 19.39 66.838 68.628 9.01 32.5 12.674 21.83 8.6 % 15.11 $ 11.2% 30.66 46.483 $ 23.54 8.4% 10.7% 18.20 Net income attributable to Chevron Corporation Sales and other operating revenues Cash dividends – common stock Capital and exploratory expenditures Cash provided by operating activities Working capital at December 31 Total assets at December 31 Total debt and capital lease obligations at December 31 Chevron Corporation stockholders’ equity at December 31 Common shares outstanding at December 31 (Millions) $ 19.005 164.8% 91.63 56.931 $ 18.6 % 17.791 20.621 10.0% 22.26 5.8% 18.1 214.53 9.6% 27.20 53.977 5.4 % 21.84 7.895 132.091 4.3 204.993.97 79.3 10.769 11.829 184.7% 10.323 7.3 167.232 77.99 73. except per-share amounts Year ended December 31 2010 2009 2008 2007 2006 $2.53 43.4 12 6 0 06 07 08 09 10 Debt Ratio Billions of dollars/Percent 125.4 0.447 161.6% 6.5% 26.60 0.26 37.6 264.4) % 93.026 24.2 8.755 31.476 105.72 $ 5.198 5.00 Financial Summary Millions of dollars.2 69.00 06 07 08 09 10 Return on Capital Employed Percent 30 Per-share data Net income attributable to Chevron Corporation – Basic – Diluted Cash dividends Chevron Corporation stockholders’ equity at December 31 Market price – Close at December 31 – Intraday high – Intraday low Financial ratios* Current ratio Interest coverage Debt ratio Return on stockholders’ equity Return on capital employed Return on total assets Cash dividends/net income (payout ratio) Cash dividends/cash from operations Total stockholder return * Refer to page 63 for Financial ratio definitions.67 2.82 104.6% 25.3% 11.40 1.786 7.162 22.06 73.648 1.993.24 2.1% 22.359 19.9% 76.50 64.25 92.914 1.6% 23.5% 24 18 17.7 101.0 40 75.892 4.2 % 26.302 22. $ 9.1 166.165 8.990.901 86.1% 1.688 $ 17.3 % 29.84 52.4 % (18.081 1.024 $ 10.7 9.138 198.611 24.0 50 $116.396 16.076.13 $ 7.9 9.48 2.150.514 91.80 1.3% 17.632 4.4% 8.3 53.0 20 25.74 $ 11.Financial Information Annual Cash Dividends Dollars per share 3.8% 19.33 95.9% 29.4 62.
342 12.653 17.842 15.669 220.110 17.493 1.624 5.086 5.483 $ 23.116 2.857 4.446 68.940 9.333 32.241 23.892 4.336 $ 53.594 108.958 5.563 80 264.681 273.198 5.311 5.169 9.636 99.147 13.0 $ 19.303 – 229.723 250.136 112 11.591 (117 ) 197.542 61.266 166 188.904 133.2 83.672 53.254 $ 47. & NGLs Petroleum Products & Chemicals Total Revenues and Other Income Costs and Other Deductions Purchased crude oil and products2 Operating expenses Selling.919 19.928 116.093 204.479 18.814 24.528 21.057 19.863 6.109 9.0 200.565 633 198.0 06 07 08 09 10 Chevron Corporation 2010 Supplement to the Annual Report 3 .931 $ 18.309 16.031 100 213.811 102.290 3. depletion and amortization 3 Taxes other than on income1 Interest and debt expense Total Costs and Other Deductions Income Before Income Tax Expense Income tax expense Net Income Less: Net income attributable to noncontrolling interests Net Income Attributable to Chevron Corporation 1 2 Net Income Attributable to Chevron Corporation Billions of dollars 25.0 0.528 7.637 1.461 6.483 3.0 $198.948 43.093 1.337 25.488 78.026 24.091 867 264.442 133.0 20. general and administrative expenses Exploration expenses Depreciation.014 17.862 1.364 7.708 22.121 9.488 2.063 18.316 918 171.660 1.551 (103 ) (90 ) (73 ) (65 ) 166.517 4.883 451 178.0 50.Financial Information Consolidated Statement of Income Millions of dollars Year ended December 31 2010 2009 2008 2007 2006 Sales & Other Operating Revenues Billions of dollars 300.091 4.813 8.965 10.647 7.188 4.630 32.886 15.0 06 07 08 09 10 All Other Crude Oil & Condensate.074 $ 42.600 61.0 Revenues and Other Income Sales and Other Operating Revenues1.046 14.838 17.460 2.926 1.108 18.138 5.232 95.130 5.642 5.502 1.024 $ 10.577 31.330 8.118 128.072 32.795 107 204.402 3.932 5.527 1.467 19.937 6.2 Gasoline Jet fuel Gas oil and kerosene Residual fuel oil Other refined products Total Refined Products Crude oil and condensate Natural gas Natural gas liquids (NGLs) Other petroleum revenues Chemicals Excise taxes Other Total Upstream and Downstream All Other Total Sales and Other Operating Revenues Income from equity affiliates Other income $ 42.323 8.868 2.0 $19.005 171.0 100.846 10.191 50 172. Includes amounts for buy/sell contracts.767 1.912 23.056 40.756 1.151 14.725 44 0.366 2.0 3 2006 to 2009 conformed to 2010 presentation.407 16.437 22.170 7.506 20.274 13.795 5.515 3.123 3.348 5.694 1.397 20.639 14.274 817 214.688 $ 17. associated costs are in “Purchased crude oil and products”: Includes asset impairment charges: $ $ – 121 $ $ – 542 $ $ – 351 $ $ – 415 $ $ 6.208 70 150.055 12.873 32.144 2.591 28 153.698 704 167.195 697 204.0 15.0 10. Natural Gas.007 31.255 971 210.553 $ 37.
396 ) (19 ) – 3 Retained Earnings at December 31 $ 19.791 ) – (35 ) 3 17.138 (4.0 $17.524 17.541 $ 4.024 (5.289 $ 01.0 Consolidated Statement of Comprehensive Income Millions of dollars Year ended December 31 2010 2009 2008 2007 2006 20.024 $ 10.0 Net income Currency translation adjustment Net unrealized holding (loss) gain on securities Net derivatives gain (loss) on hedge transactions Defined benefit plan activity – (loss) gain Other comprehensive (loss) gain.5) 06 07 08 09 10 All Other2 Net Income Attributable to Chevron 1 2 $ 19. power generation businesses.677 10.162 ) – – 4 18. 4 Chevron Corporation 2010 Supplement to the Annual Report .931 $ 18.932 22.7 15. net of tax Comprehensive Income Comprehensive income attributable to noncontrolling interests $ 19.483 $ 23.102 $ 82.169 15.464 1 1 1 3.031 $ 18.909 ) 31 19 (6 ) 685 729 55 (88 ) 67 (38 ) (4 ) 18.122 $ 2.138 International United States 2006 to 2009 conformed to 2010 segment presentation.464 $ 55.641 $ 06.795 $ 17.Financial Information Worldwide Upstream Earnings Billions of dollars 25.577 (121 ) 594 473 (922 ) 1.166 22.353 1.5 Balance at January 1 Net income attributable to Chevron Corporation Cash dividends Adoption of new accounting standard for stripping costs in the mining industry Adoption of new accounting standard for uncertain income tax positions Tax benefit from dividends paid on unallocated ESOP (employee stock ownership plan) shares and other $ 06.5 Income Attributable to Chevron Corporation by Major Operating Area $2.204 (112 ) (80 ) (100 ) (107 ) (70 ) $ 18.483 (5.688 $ 17.122 19.5 Millions of dollars Year ended December 31 2.022 10.670 15.783 3.5 (0.152 (1.131 ) 8. prior to its sale in May 2007.5 2010 2009 2008 2007 2006 Upstream1 – United States – International – Total – United States – International – Total $ 4.209 2.555 1. worldwide cash management and debt financing activities.369 1.674 ) – – 2 10.493 Downstream1 0.738 1 1 19. corporate administrative functions.086 $ 22.0 Comprehensive Income Attributable to Chevron Corporation 5.0 Retained Earnings 0.139 2.102 $ 82.022 $ 19.390 ) 1.136 $ 10.339 1.5 17. Includes mining operations. real estate activities. insurance operations.808 4.262 $ 7.563 $ 24.478 (1.118 13.329 $ 68.991 10.285 13.901 ) (1.302 ) – – 6 23.596 (26 ) 9.161 (516 ) 1.134 10.387 3.688 (4.417 $ 17.208 2.931 (5. alternative fuels and technology companies. and the company’s investment in Dynegy Inc.289 $ 01.208 6 (4 ) 20 (167 ) (145 ) 60 2 (60 ) (399 ) (397 ) (112 ) (6 ) 110 (1.0 06 07 08 09 10 Year ended December 31 Millions of dollars 2010 2009 2008 2007 2006 United States International Worldwide Downstream Earnings Billions of dollars 4.147 $ 4.879 $ 10.329 $ 68.
159 19. cash equivalents and marketable securities.786 $ 32.854 4.561 32.088 204 77. information systems.288 91.628 1 Segment Assets Millions of dollars At December 31 2010 2009 2008 2007 2006 Upstream1.519 48.203 18.841 2. supplies and other Total inventories Prepaid expenses and other current assets $ 14.780 4.747 68.855 155 20. technology companies.470 2.619 252 – 732 22.818 $ 1.477 154.494 77.469 1.769 $164.491 4.304 2.088 4.158 188.776 2.820 96.081 730 105. Chevron Corporation 2010 Supplement to the Annual Report 5 .437 16.863 104.216 2. plant and equipment Deferred charges and other assets Goodwill Assets held for sale Total Assets Liabilities and Equity Short-term debt Accounts payable Accrued liabilities Federal and other taxes on income Other taxes payable Total Current Liabilities Long-term debt and capital lease obligations Deferred credits and other noncurrent obligations Noncurrent deferred income taxes Reserves for employee benefit plans Total Liabilities Chevron Corporation stockholders’ equity Noncontrolling interests $184.275 4.240 $146.264 12. net Investments and advances Properties.972 3.574 36.060 91.165 $148.749 63.968 1 $184.282 $135.678 11.675 5.680 383 1.362 $ 10. mining operations.144 105.696 78.449 71.546 2. at cost Less: Accumulated depreciation.697 6.703 3. real estate.521 6. plant and equipment.935 13.440 $ 92.165 $148.679 11.413 20.012 11.493 2.628 1 Total Assets 1 2 3 2006 to 2009 conformed to 2010 segment presentation. the company’s investment in Dynegy Inc.626 1.210 4.621 $161.648 469 87.619 $ 4.965 22.633 1.367 102.786 $132.617 $ 4.474 78.466 1.299 81.023 6.562 39.883 42.520 207.048 86. power generation businesses.621 $161.347 $ 7.324 5.610 3. Includes goodwill associated with the acquisition of Unocal Corporation: $ 4.624 3.519 91.647 4.811 Total Equity Total Liabilities and Equity $ 84.660 Total Segment Assets All Other2 $162.798 6.858 2.725 74.291 15.446 4. and assets of the corporate administrative functions.529 5.007 12.920 173.589 395 1.000 11.527 39.769 $164.375 8.440 $ 16.842 14.552 137.509 5.493 5. prior to its disposition in 2007.628 $ $ 187 $ 384 $ 2.889 68.484 68.808 72.769 164.003 290 1.403 29.391 1.381 37.310 3.879 4.2 Downstream1 $120.207 $151.533 13.211 10.305 $108.907 $ 80.083 17.637 $ 4.077 5.759 3. depletion and amortization Net properties.677 $ 41.117 33.466 5.242 111.914 647 92.618 $ 4.220 6.Financial Information Consolidated Balance Sheet Millions of dollars At December 31 2010 2009 2008 2007 2006 Assets Cash and cash equivalents Time deposits Marketable securities Accounts and notes receivable.292 28.017 5.786 $132.346 36.628 3.162 37.958 26.637 – – 953 17.079 3.259 16.468 2.289 19.586 258 812 4.623 – Total Current Assets Long-term receivables. net Inventories Crude oil and petroleum products Chemicals Materials.856 5.580 21.623 “All Other” assets consist primarily of worldwide cash.716 $ 9.377 2.077 21.070 15.621 $161.656 2.162 $ 2.539 6.084 75.130 17.170 4.409 7.060 $ 8.175 459 1.282 21.165 $148.756 16.200 36.194 20.504 3.617 – – 106 17.390 11.711 4.935 209 69.618 – – 213 15.
545 ) (621 ) (4.4 27.224 ) (4.4 18.572 (17.031 $ 18.219 ) ) ) ) ) (212 ) 1.400 (14.359 12.030 (1.0 06 07 08 09 10 Operating Activities Net income Adjustments Depreciation.205 – – – – (2.396 ) (60 ) 194 450 10.347 (496 ) 168 (5.848 ) ) ) ) Net Change in Cash and Cash Equivalents Cash and cash equivalents at January 1 Cash and Cash Equivalents at December 31 $ 14.Financial Information Cash From Operating Activities Compared With Capital Expenditures & Dividends Billions of dollars 36.708 507 (1. depletion and amortization Dry hole expense Distributions less than income from equity affiliates Net before-tax gains on asset retirements and sales Net foreign currency effects Deferred income tax provision Net decrease (increase) in operating working capital composed of: (Increase) decrease in accounts and notes receivable Decrease (increase) in inventories Increase in prepaid expenses and other current assets Increase (decrease) in accounts payable and accrued liabilities Increase (decrease) in income and other taxes payable Net decrease (increase) in operating working capital Increase in long-term receivables Decrease (increase) in other deferred charges Cash contributions to employee pension plans Other $ 19.136 $ 10.162 ) (99 ) (166 ) 1.563 $ 24.362 $ 10.362 (345 ) 650 (3.060 ) – – – – 2.373 9.213 (264 ) (1.678 (13.673 ) (161 ) (84 ) (839 ) 10 29.0 $25.450 ) 697 31.915 (16.977 7.632 8.439 ) (2.0 Consolidated Statement of Cash Flows Millions of dollars Year ended December 31 2010 2009 2008 2007 2006 $31.389 ) (4.476 ) 1.795 $ 17.491 3.719 483 432 – (1.493 6 Chevron Corporation 2010 Supplement to the Annual Report .930 741 685 (82 ) (530 ) (317 ) 326 24.323 Dividends Capital Expenditures Cash From Operating Activities Net Cash Provided by Operating Activities Investing Activities Capital expenditures Repayment of loans by equity affiliates Proceeds from asset sales Time deposits purchased Time deposits matured Net purchases of time deposits Marketable securities purchased Marketable securities sold Net (purchases) sales of marketable securities Net (purchases) sales of other short-term investments (19.295 (11.647 – (965 ) (6.344 8.791 ) (77 ) 120 (3.192 ) 5.628 ) (909 ) (1.060 $ 8.302 ) (71 ) 114 (631 ) 9.315 ) 378 261 (3.666 (16.413 142 – Net Cash Used for Investing Activities Financing Activities Net (payments) borrowings of short-term obligations Proceeds from issuances of long-term debt Repayments of long-term debt and other financing obligations Net (purchases) sales of treasury shares Cash dividends – common stock Distributions to noncontrolling interests Net Cash Used for Financing Activities Effect of Exchange Rate Changes on Cash and Cash Equivalents (20.975 ) 2.506 520 (979 ) (229 ) 259 614 17 (536 ) (31 ) 1.301 ) (258 ) 201 (1.236 ) 3.255 ) 466 467 (1.612 (19.821 ) (5.131 ) 10.160 185 (799 ) – (1.564 1.049 321 76 (12 ) 48 (1.347 2.271 ) 1.246 348 1.493 (677 ) – (2.995 2.855 ) (90 ) 41 (49 ) (732 ) – (30 ) 157 127 244 – (3.813 ) ) ) ) ) 338 336 179 21 463 1.491 ) (4.985 7.674 ) (72 ) (5.208 13.063 496 (501 ) (1.343 ) (6.043 (3.004 ) 251 559 (2.358 ) (355 ) 598 6.347 $ 7.767 ) 15 (542 ) 3.739 ) 670 19.843 (19.867 ) (749 ) (370 ) 4.716 $ 9.170 ) 70 5.250 (156 ) (306 ) (5.546 (10.933 (12.338 989 (5.528 375 (440 ) (1.121 ) (653 ) (2.0 9.081 (13.044 (900 ) 232 (449 ) (503 ) 24.716 (3.0 0.110 552 (103 ) (1.
Consolidated companies only.149 10.962 598 271 521 774 5.147 $ 1.585 $ 2.763 2. Chevron Corporation 2010 Supplement to the Annual Report 7 .394 507 485 403 625 7.723 1.454 1.313 12 33 132 37 20 948 1.342 $ 1.305 $ 736 $ 810 2. and research and development costs.385 12.119 1.771 769 801 311 78 142 7 14.906 2.536 362 1.611 $ 1.593 1.783 1.775 $ 20.266 9.002 13.388 $ 1.656 4.563 2.8 20. Includes expensed well contributions.077 12.204 629 197 69 201 13 16. $ 21.120 1.822 3.026 $ 16.712 530 200 482 417 0.0 10.192 5.464 335 302 435 405 8.Financial Information Capital and Exploratory Expenditures (Includes equity share in affiliates) Millions of dollars Year ended December 31 Capital & Exploratory Expenditures* Billions of dollars 25.973 1.0 5.357 431 942 388 54 238 14 10.211 3.755 $ 22.848 $21.099 770 49 133 196 160 142 264 210 407 218 146 195 239 261 280 244 286 402 618 768 403 5.237 $ 22.577 246 333 396 299 1.919 Exploration Expenses2 Millions of dollars Year ended December 31 2010 2009 2008 2007 2006 Geological and geophysical Unproductive wells drilled Other3 $ 255 $ 496 396 328 $ 552 462 329 $ 375 465 367 $ 507 449 429 520 415 Total Exploration Expenses Memo: United States International 1 2 3 $ 1.715 14.463 1.0 2.154 959 202 92 196 3 16.0 06 07 08 09 10 All Other Downstream Upstream *Includes equity share in affiliates.0 2010 2009 2008 2007 2006 United States Exploration Production Other Upstream1 Refining Marketing Chemicals Other Downstream1 All Other Total United States International Exploration Production Other Upstream1 Refining1 Marketing Chemicals Other Downstream1 All Other Total International Worldwide Exploration Production Other Upstream1 Refining1 Marketing Chemicals Other Downstream1 All Other Total Worldwide Memo: Equity share of affiliates’ expenditures included above $ 638 $ 605 $ 1.478 14.982 901 2.323 $ 1.169 $ 1.339 7.173 10.173 1.364 $ 186 $ 961 451 $ 891 370 $ 799 511 $ 812 431 933 2006 to 2009 conformed to 2010 presentation.187 2. oil and gas lease rentals. Excludes amortization of undeveloped leaseholds.306 $ 2.052 2.0 15.990 15.670 451 1.336 $ 1.505 1.216 1.800 2.714 325 863 438 53 241 6 12.
5 100.0 (11. Net of exploratory well write-offs.299 $ 54.081 $ 5. real estate assets and management information systems.610 $ 68.Financial Information Net Properties.858 1 $ 07.0 Net Properties.309 ) (151 ) (373 ) (13 ) (537 ) (136 ) (305 ) (9 ) (450 ) 64.048 (6. depletion and amortization (DD&A) and total DD&A expense shown on the income statement relates to accretion expense. Includes net investment in unproved oil and gas properties: $ 5.315 1. Plant and Equipment at December 31 Memo: Gross properties.218 8 Chevron Corporation 2010 Supplement to the Annual Report .179 (1.728 75.186 2.474 (68. Plant and Equipment at January 1 Additions at Cost Upstream1.960 ) (1.098 ) (504 ) (579 ) (35 ) (1.321 $ 5. Depletion and Amortization Expense4 Upstream1 Downstream1 All Other3 Total Depreciation.084 $ 37.708 278 13. power generation businesses.468 $ 91.820 (81.288 $ 73.0 50.750 ) (1.0 06 07 08 09 10 United States International Net Properties. Depletion and Amortization Expense Net Retirements and Sales Upstream1 Downstream1 All Other3 Total Net Retirements and Sales Net Intersegment Transfers and Other Changes5 Upstream1.0 06 07 08 09 10 2006 to 2009 conformed to 2010 segment presentation.392 2.647 ) ) (254 ) (246 ) (18 ) (518 ) (64 ) 6 17 (41 ) 87. Reconciliation as follows: DD&A on consolidated statement of income Less: Accretion expense DD&A – Properties.110 $ (463 ) 11.145 14.063 $ (513 ) 12.504 $ 96.506 (275 ) 7. Plant & Equipment by Function Billions of dollars 125.6 Downstream1.747 2 1 1 1 1 75.231 ) (192 ) (239 ) (34 ) (465 ) (2 ) (140 ) (21 ) (163 ) 55.055 (10.858 $ 63.528 $ (430 ) 9.690 19. Includes reclassification adjustments for “Assets held for sale” in 2008.367 $ 88.559 25.072 13. Plant and Equipment at December 31 Upstream1.598 603 23.193 11. depletion and amortization Net properties.257 11.2 Downstream1 All Other3 Total Additions at Cost Depreciation.780 $ 78.0 $ 04. Difference between the total depreciation.610 $ 68.550 $ 12.858 1 50.367 $ 4.873 1.029 ) (1.280 12.708 $ (399 ) 8.927 $ 5. Plant & Equipment by Geographic Area Billions of dollars 125. plant and equipment $ 96.723 14.5 100. Primarily mining operations.550 (11.0 Properties.0 (102.780 $ 78.0 4 0.321 2.327 2.270 2.041 1.151 ) (198 ) (8.106 ) ) (316 ) (303 ) (12.647 $ 9.174 2.037 ) (165 ) (7.512 (295 ) (90 ) (30 ) (415 ) (137 ) (122 ) 1 (258 ) 79.330 357 17.7 Downstream1 All Other3 Total Net Properties.504 $ 96. plant and equipment Accumulated depreciation.468 $ 91.231 All Other Downstream Upstream 5 6 7 Includes reclassifications to/from other asset accounts. plant and equipment $ $ 13.0 $104.610 $ 68.008 20.098 $ 8.118 ) (346 ) 121 18 (207 ) 76.534 16.137 2.6 All Other3 Total Net Intersegment Transfers and Other Changes Net Properties.519 (75.593 (7. Plant and Equipment (Includes capital leases) Millions of dollars At December 31 2010 2009 2008 2007 2006 $104.103 ) (245 ) (9.665 14.027 (6.0 0.309 $ 7.863 (91.0 1 2 3 25.560 270 21.780 $ 78.468 $ 91.238 ) ) (1.093 685 19.889 ) ) ) ) ) $ 04.
87 2.607 $ 1.286 $103.076.901 11. social insurance plans and other benefits.32 8.918 $ 4.132 61.8 (Millions of barrels) Raw stocks Unfinished stocks Finished products Total 1 2 3 $117.48 $ 2.473 $ 2.041 66.791 $ 4.3 2.929 62.052 6.80 40 20 $ 5.881 2.417 10.360 18.527 41.454 $ 4.873 65.621 4.309 22.055 2.628 6.7 – International 6.9 188 1.27 $ 2.886 $ 1.298 3.87 1.3 1.464 2.185.035 55.016 $ 3.e.97 2.85 2.100 $ 1.113 47.086 22.991.72 $ 46.48 $ 0.784 4.002 $ 2.793 4.1 2.6 1.13 $ 32. other postemployment benefits.7 – Goodwill – Total Downstream – United States 6.75 2.674 $ 5.6 216 2.311 8.057 Average sales per employee 5 (Thousands of dollars) Average monthly wage per employee Capital Employed at December 31 (Millions of dollars) Upstream – United States 6.250 $ 4.993.52 1. employee severance.196 $ 2.897 $ 5.70 1.875 $ 3.307 35.982 74 33 37 144 78 33 39 150 95 31 46 172 84 28 51 163 81 29 48 158 4 5 6 7 Consolidated companies only.29 1.636 $ 15.018 $ 84.990.637 59.7 – Total All Other 60.196 59.189 8 On an “owned” inventories basis (i.198 $ 6.995.966 12.67 $ $ 52.7 – International 6.4 2.53 $ 2.572 62.645 59.617 79.26 $ 2.11 $ 43.162 $ 4.265 $ 3.06 0 06 07 08 09 10 Personnel.211 21.751 $ 15. Investment = Total year-end capital employed.793 $ 2.623 52.396 $ 2. physical inventory adjusted for volumes payable to receivable from others).169 64.666 19.473 $ 4.. Average sales per employee = Sales and other operating revenues (net of excise taxes)/Average number of employees (beginning and end of year).661 $ 5. 2006 to 2009 conformed to 2010 segment presentation.052 1.329 4.150.882 6.54 $ 37.694 10. Chevron Corporation 2010 Supplement to the Annual Report 9 .Financial Information Miscellaneous Data 2010 2009 2008 2007 2006 Chevron Year-End Common Stock Price Dollars per share 100 Common Stock Number of shares outstanding at December 31 (Millions) Weighted-average shares outstanding for the year (Millions) Number of stockholders of record at December 31 (Thousands) Cash dividends on common stock Millions of dollars Per common share Net income attributed to Chevron Corporation per common share – Diluted First quarter Second quarter Third quarter Fourth quarter Year Chevron Corporation stockholders’ equity per common share at December 31 1.933 $ $ 270 702 972 $ $ 1.141 2. savings and profit-sharing plans.439 9.436 $ 3.618 75.25 80 $ 5.951 11.300 $ 1.052 3.267 3.44 2.90 3.66 $ 2.80 1.92 1.4 206 2.627 $ 4.650 7.027 $ 13.0 225 $91.080 4. Includes a realignment of accounts receivable from Downstream to Upstream that reflects Upstream equity crude marketed by Downstream: United States International Total $ $ 1.64 9.075 $ 96.441 $ 1.963 4.92 $ 0.200 $ 3.037.162 5.989 11. Excludes incentive bonuses.464 6. Includes pension costs.74 7.524 $ 78.207 Total Capital Employed Petroleum Inventories at December 311.775 $ 14.53 2.24 $ 11.439 $ $ 1.294 55.01 $ 60 2.116.84 $ 2.003 15.107 $ $ 725 1.334 11.488 $ 5. Payroll and Benefits1 Number of employees at December 31 Excluding service station employees Service station employees Total Payroll costs2 (Millions of dollars) Employee benefit costs3 (Millions of dollars) Investment per employee at December 31 4 (Thousands of dollars) 58.604 5.302 $ 5.619 67.684 $ 12.500 $ 2.742 $ 1.5 197 1.993.567 5.77 $ 1.18 $ 2.
Photo: Natural gas/fuel-oil fired steam generators for the Large-Scale Steamflood Pilot at the First Eocene heavy-oil carbonate reservoir in the Partitioned Zone. build new legacy positions and commercialize the company’s equity natural gas resource base while growing a high-impact global gas business.Upstream Grow profitably in core areas. .
capturing and effectively incorporating new core upstream businesses. The company’s producing operations are geographically dispersed.80 per MCF in 2009. regasifying and marketing natural gas.7 billion. with no other country accounting for more than 10 percent of the company’s total worldwide output. Upstream Portfolio Exploration Production Aligned with the activities in both exploration and production is the company’s strategy to commercialize its significant worldwide natural gas resource base through the development and integration of business activities. 2 percent higher than in 2009. Drilling and seismic activities occurred or were in various stages of planning in several test areas. Industry Conditions Average prices for crude oil were higher in 2010 than in 2009. Liberia. 2010 Accomplishments Worldwide • Achieved a world-class safety record in the days-away-from-work performance metric. China. Leading the industry in selection and execution of major capital projects. In 2010. Identifying.Highlights Upstream Highlights Worldwide net oil-equivalent production averaged 2. benchmark prices at Henry Hub averaged $4. including offshore United Kingdom. price changes for natural gas in many regional markets are more closely aligned with supply-and-demand conditions in those markets. • Achieved an exploration drilling success rate of 57 percent. Growing and developing equity gas resource base.763 million barrels per day in 2010.60 per MCF. Romania and Turkey. the U. In the United States during 2010. About 26 percent of 2010 production was in the United States and another 13 percent was in Kazakhstan. a benchmark crude. Business Strategies Grow profitably in core areas and build new legacy positions by: • • • • • • Achieving world-class operational performance. The increase in average prices from 2009 is largely associated with improved global economic conditions. including producing. liquefying. • Reported net income of $17. Chevron’s international natural gas realizations averaged approximately $4. Chevron Corporation 2010 Supplement to the Annual Report 11 . These realizations reflect a strong demand for energy in certain Asian markets. the eastern coast of Canada and deepwater Brazil.S. Achieving superior exploration success. compared with about $4. compared with about $3. averaged $79 per barrel for full-year 2010. Poland. compared with $62 in 2009. The spot price for West Texas Intermediate crude oil. Fluctuations in the price for natural gas in the United States are closely associated with customer demand relative to the volumes produced in North America and the level of inventory in underground storage.763 million net oil-equivalent barrels per day including synthetic oil. including oil sands. Gulf of Mexico and offshore northwest Australia. In contrast to price movements in the global market for crude oil. Maximizing and growing the base business. The company’s focus areas for exploration in 2010 were the deepwater regions of West Africa. In addition. new exploration areas were added in Canada. transporting.50 per thousand cubic feet (MCF). 2 percent higher than oil-equivalent production. • Produced 2.00 per MCF during 2009. in 2009.
• • • • • Canada – Achieved first production from the Athabasca Oil Sands Project (AOSP) Expansion. • Produced the company’s 5 billionth barrel of net oil-equivalent production from the Permian Basin. Liberia – Acquired interest in three deepwater concessions. — Reached final investment decisions for the Big Foot. • Vietnam – Awarded a contract for FEED for the Block B Gas Project offshore development and signed a Business Cooperation Contract for the Block B Gas Pipeline project. International Exploration: • Angola – Made a pre-salt exploration discovery in Block 0 located near the planned Greater Vanza/Longui Area development. • Venezuela – Signed an agreement to work toward commercializing a heavy-oil project in three blocks within the Carabobo Area of eastern Venezuela’s Orinoco Belt. • Australia – Awarded approximately $25 billion of contracts for materials and services for the Gorgon Project. • • • • • • • Canada – Acquired shale gas acreage in Western Canada and secured a new exploration lease in the Beaufort Sea. Poland – Acquired an additional shale gas concession area in southeast Poland. • Thailand – Completed installation of a central processing platform jacket and living quarters module for the Platong Gas II project. offshore East Kalimantan. Kazakhstan – Continued to increase production at the Tengizchevroil (TCO) Sour Gas Injection/Second Generation Plant Project in Kazakhstan. • Angola – Secured right-of-way for Congo River Crossing Pipeline. Jack/St. 12 Chevron Corporation 2010 Supplement to the Annual Report . • Nigeria – Delivered first gas from the Escravos Gas Project Phase 3A. • Reached agreement to acquire Atlas Energy.Upstream Highlights United States • Accomplished major milestones on Gulf of Mexico projects: — Achieved first production at the deepwater Perdido Regional Development Project. • Australia – Executed binding and nonbinding agreements with Asian customers for the delivery of LNG from the Gorgon and Wheatstone projects. Indonesia – Received government approval of FEED for the Gendalo-Gehem natural gas project. Canada – Received government approval for front-end engineering and design (FEED) at Hebron project. — Added 42 offshore leases – 15 in the deep water and 27 on the shelf. Project Execution: • Brazil – Reached final investment decision for the deepwater Papa-Terra project. Turkey – Acquired a deepwater exploration lease in the Turkish Black Sea. Romania – Awarded three shale gas exploration blocks. Russia – Signed Heads of Agreement (HOA) for deepwater exploration of the Shatsky Ridge in the Russian Black Sea. China – Acquired interest in three deepwater exploration blocks in the South China Sea. Inc. • Kazakhstan/Russia – Reached final investment decision for the Caspian Pipeline Consortium Expansion Project. China – Continued construction of the natural gas purification plant at Chuandongbei. • Australia – Announced several natural gas discoveries during 2010 and early 2011 offshore Western Australia that are expected to contribute to future growth at company-operated liquefied natural gas (LNG) projects. Global Natural Gas Projects • Angola – Continued construction on the Angola LNG project and installed the roof on the first of four LNG tanks. Malo and Tahiti 2 deepwater projects.
Chevron Corporation 2010 Supplement to the Annual Report 13 .351 4. Does not include mining acreage associated with synthetic oil production in Canada.800 $ 12 $ 3. — Australia – Continue construction of the Gorgon Project.062 23 16 669 12.901 17 4 582 38.779 4.732 3.507 1.234 5. Represents volumes produced at Athabasca (Canada) Oil Sands in 2009.726 6.857 1.989 1.122 $ 2. • Exploration – Deliver new hydrocarbon resources through continued exploration investment. — Vietnam – Reach final investment decision for the Block B Gas Development Project.173 $ 1. Consolidated companies only.286 $ 2. Resume deepwater exploratory drilling in the U.831 56.8 (Thousands of acres) Exploration expenditures Production expenditures Other upstream expenditures2 Total upstream capital and exploratory expenditures2 1 2 3 $ 4.555 $ 8.472 5. — Australia – Reach final investment decision for the Wheatstone Project. — China – Continue construction and development at Chuandongbei gas project. — Indonesia – Commence FEED for the Bangka natural gas project.6 Net oil and gas acreage 7.932 22 1 634 38. In early 2011 signed a binding Sales and Purchase Agreement (SPA) with an Asian customer.314 $ 1. reduce decline rates and lower costs.154 $ 15.454 1.Highlights Upstream 2011 Outlook • Complete acquisition of Atlas Energy.002 4 5 6 7 8 Includes equity share in affiliates unless otherwise noted. • Base business – Continue major initiatives to improve operating efficiencies.907 60. — Nigeria – Continue drilling at Agbami to maintain plateau production. Includes wells producing or capable of producing and injection wells temporarily functioning as producing wells.476 21.294 1. — Thailand – Achieve first production on the Platong Gas II Project. • Global Natural Gas Projects – Progress activities to commercialize the company’s natural gas resource base: — Angola – Continue construction of the Angola LNG Project.S.656 $ 33 $ 3.385 $ 12.463 1.741 23. — United Kingdom – Reach final investment decision for the Clair Ridge development.275 2. — United States – Commence FEED for the Mad Dog II development project.477 $ 605 $ 2.670 527 489 – 1.182 8. Gross production or gross reserves are the company’s share of total production or total reserves before deducting royalties (and a government’s agreed-upon share of production under a production-sharing contract [PSC]).519 3.590 7.228 26.391 7.077 $ 12.) • Project execution – Advance major projects that are expected to add production in 2011 and beyond: — Canada – Commence shale gas appraisal drilling program in Alberta.450 523 484 — 1.698 5.361 3.074 2. Inc.204 $ 15.463 $ 1.612 27. bringing contracted volumes from signed binding SPAs and nonbinding HOAs to approximately 90 percent of the company’s LNG offtake for the project. 2009 conformed to 2010 segment presentation. Upstream Financial and Operating Highlights1 Dollars in millions United States International 2010 2009 2010 2009 Segment earnings2 Gross liquids production 3 (Thousands of barrels per day) Net liquids production 3 (Thousands of barrels per day) Other produced volumes 4 (Thousands of barrels per day) Gross natural gas production 3 (Millions of cubic feet per day) Net natural gas production 3 (Millions of cubic feet per day) Gross proved liquids reserves 3 (Millions of barrels) Net proved liquids reserves 3 (Millions of barrels) Gross proved natural gas reserves 3 (Billions of cubic feet) Net proved natural gas reserves 3 (Billions of cubic feet) Natural gas sales (Millions of cubic feet per day) Natural gas liquids sales (Thousands of barrels per day) Net productive exploratory oil and gas wells completed 5 Net productive development oil and gas wells completed 5 Net productive wells at year-end 5.314 1.399 1.376 1. — United States – Reach final investment decision for the Tubular Bells development. — Kazakhstan – Commence FEED for the TCO Future Growth Project.813 2. Gulf of Mexico.611 1. build on previous discoveries and appraisal successes.493 27 11 522 14.857 $ 638 $ 2. Net wells include all wholly owned wells and the sum of the fractional interests in wells that are associated with joint ventures or unitized operations.362 26 4. Net production or net reserves are after deducting royalties (and a government’s agreed-upon share of production under a PSC).262 $ 13. — Nigeria – Continue construction of the EGTL facility.869 5. — Canada – Complete AOSP Expansion 1 Upgrader modifications. (Acquisition completed February 2011.434 – 4.
where a successful appraisal well was completed early in the year. At the end of 2010. were produced from these diatomite reservoirs. 1 in net daily oil-equivalent production in California in 2010 at 199. infill and replacement locations during 2010 and plans to drill an additional 56 wells in these diatomite reservoirs in 2011. diatomite reservoir). Chevron again ranked No.000 barrels of crude oil (133.000 net). Waterflood technology is being used to improve recovery of the field’s hydrocarbons. 404 of which are located in water depths greater than 1. the company continues to progress the development of increased water and natural gas handling capacity at the field. These enhanced-recovery activities are intended to allow production of additional crude oil and natural gas that would not be recoverable using conventional methods. with emphasis on improved energy efficiency. 100 percent.000 barrels. Chevron has an interest in 686 leases in the Gulf of Mexico. McKittrick and Midway Sunset contain heavy oil. had total average daily production from company-operated leases of 75. diatomite is a reservoir rock with very high porosity and low permeability. Heat management continues to be a major operational focus in the recovery of these reserves. 99 percent. nitrogen injection optimization continued and a second alkaline surfactant polymer flood pilot was initiated. a mature steamflood operation.S. Chevron’s interest by field was: Kern River.000 feet (305 m). approximately 42. Total daily production from these wells averaged 12. with net daily oil-equivalent production averaging 708. the Rocky Mountains and Alaska.000 barrels. McKittrick. thermal recovery techniques utilizing steam are applied to increase oil recovery.000 barrels of crude oil (74. Formed from the remains of microorganisms called diatoms. composed of 169.000 barrels of NGLs (4.Upstream United States United States Chevron’s U. composed of 178. 197 development wells (including producers and injectors) and one delineation well were drilled. The company drilled 64 wells in new.000 net). Dewatering of the reservoir from areas underlying the crude oil accumulation is successfully reducing reservoir pressure and enabling economic steamflooding. exploratory drilling efforts were primarily concentrated in the deepwater Gulf of Mexico. Inc. 100 percent.000 net) and 2 million cubic feet of natural gas (2 million net). the Gulf of Mexico. 445 million cubic feet of natural gas and 17.000 net) in 2010. Texas. The governmentimposed deepwater drilling moratorium halted drilling activities at several exploration prospects and also impacted development drilling activity in the Gulf of Mexico. More than 195 horizontal wells have been drilled in Kern River since 2006 to more efficiently develop remaining resources. and Cymric. A pilot project to drill horizontal wells at depths of less than 500 feet (152 m) from the surface was initiated in 2010 and is planned to continue into 2011. In 2010. Diatomite Reservoirs Chevron has crude oil resources in diatomite reservoirs at the Cymric. A recovery technique utilizing a high-pressure cyclic steaming process continues to improve recovery from Cymric’s Antelope reservoir. the total daily production from these leases was 136. In addition. In the Shallow Oil Zone. In February 2011. In 2010. which is expected to be completed in third quarter 2011. The majority of the production is from company-operated leases located in a portion of three major crude oil fields: Kern River.000 barrels of NGLs.000 barrels of crude oil. 96 million cubic feet of natural gas and 5.000 barrels of crude oil. 21 percent of the company’s net oil-equivalent production in California. Midway Sunset. Lost Hills Kern River Cymric and McKittrick Bakersfield Midway Sunset Elk Hills California Taft San Joaquin Valley Crude Oil Field Chevron Activity Highlight Elk Hills An active development program continued at the Elk Hills Field. portfolio is composed of a diverse group of assets concentrated in California.000 barrels of natural gas liquids (NGLs).000 barrels. resulting in incremental crude oil production and reserve additions. During 2010. California Operating primarily in the San Joaquin Valley. Midway Sunset and Lost Hills fields.000 barrels per day. Total daily production was 44. making commercial production difficult. the company was the largest leaseholder in the Gulf of Mexico. which continued to extend producing boundaries. Gulf of Mexico During 2010.000 barrels of crude oil (12. The diatomite reservoirs at Cymric. including drilling in shale zones. in which the company has an average nonoperated working interest of 23 percent in four producing zones. the company drilled 25 production wells during 2010. net daily oil-equivalent production for the company’s combined interests in the Gulf of Mexico shelf and deepwater areas and the onshore fields in the region averaged 260. the company added natural gas resources and shale acreage primarily in southwestern Pennsylvania and Michigan with the acquisition of Atlas Energy. Louisiana. Midway Sunset and Cymric. New Mexico. 14 Chevron Corporation 2010 Supplement to the Annual Report . representing approximately one-fourth of the companywide total.000 net) and 14 million cubic feet of natural gas (14 million net). With respect to these operated leases. In the Lost Hills Field (a light-oil. The Kern River Field.000 barrels of crude oil (10. and the process is also being used at McKittrick and Midway Sunset. With approximately 84 percent of the company’s crude oil production in California considered heavy oil (typically with API gravity lower than 22 degrees). The company drilled 165 infill wells at Kern River in 2010 and planned to drill approximately 197 infill wells in 2011. In 2010. 283 million cubic feet of natural gas (65 million net) and 18. The company was the thirdlargest hydrocarbon producer in the United States during 2010.
000 net) and 6 million cubic feet of natural gas (2 million net). Chevron Corporation 2010 Supplement to the Annual Report 15 . In July 2010. An appraisal well to test the Mad Dog north flank potential is Alabama planned for 2011. production was shut-in shortly after first oil when issues with the compression and export gas systems arose.000 barrels of crude oil. that Chevron and other major energy companies formed. In February 2011.000 net).6 percent nonoperated working interest in this spar floating production facility and field. Chevron has a 15. Perdido Regional Development First oil at the Perdido development was achieved in first quarter 2010. Production Blind Faith Total daily production in 2010 averaged 48.000 barrels of crude oil (8. development drilling was stopped. Chevron operates and holds a 75 percent working interest in this project. 382 million cubic feet of natural gas and 9. is the deepest spar production facility in the world. It is the company’s deepest operated offshore production facility.438 m) of water.000 feet (2. Chevron was not a participant in the well.000 barrels of crude oil (9. an accident occurred at the competitor-operated Macondo prospect in the deepwater Gulf of Mexico.000 barrels of crude oil (36. The Perdido Regional Development is located in the ultradeep Alaminos Canyon. The company’s net oil-equivalent production for 2010 in the Gulf of Mexico was reduced by about 10. Petronius SHELF Genesis DEEP WATER Perdido Regional Development Silvertip Tobago Great White Tahiti Caesar/Tonga Jack Knotty Head Mad Dog Big Foot St.5 percent nonoperated interest. which will be completed in a multiyear drilling program. A maximum daily production rate of 130.000 barrels of oil-equivalent is expected to be reached in 2013.438 m) and has storage and processing capacity for up to 60. intervention and spill response. During the moratorium.000 net).000 barrels per day of liquids. The moratorium and the ensuing slowdown in issuing drilling permits have resulted in delays in shallow water drilling activity. the government issued the first deepwater drilling permit since April 2010 to another company. Mad Dog Total daily production averaged 49. The host is designed to service multiple Alaminos Canyon fields. As of year-end 2010. In 2009. located in Mississippi Canyon.000 feet (4.981 m) of water with the subsea wells located in 7.000 feet (2. Gulf Coast that can operate in water depths up to 8.5 percent nonoperated working interest). The shared host. Mississippi Texas Louisiana Houston New Orleans Pascagoula 15.000 net) and 8 million cubic feet of natural gas (1 million net) during 2010.3 percent nonoperated working interest). 29 million cubic feet of natural gas (22 million net) and 3. Chevron participated in a number of industry efforts to identify opportunities to improve industry standards in prevention. near producing infrastructure.000 barrels of NGLs (2. announced the completion and availability of an initial well containment response system located on the U. The field has an estimated production life of 20 years and is estimated to contain more than 100 million barrels of potentially recoverable oil-equivalent. Subsequent to the event. Due to the loss of the platform drilling rig during Hurricane Ike in 2008. including Great White (33. Deep Water Chevron is one of the top leaseholders in the deepwater Gulf of Mexico. and development drilling is expected to resume in 2012 once the new rig is installed. Department of the Interior placed a moratorium on the drilling of wells using subsea blowout preventers (BOPs) or surface BOPs on a floating facility in the Gulf of Mexico and the Pacific regions. as a result of these delays.000 barrels of crude oil. In October 2010. Average net daily production in 2010 was 50. 62 million cubic feet of natural gas and 8.134 m) of water. The development has an estimated production life of 25 years. delayed drilling of exploratory deepwater wells and impacted development drilling in the Gulf of Mexico. the Secretary of the Interior lifted the moratorium on deepwater drilling activity. producing 23. the partners authorized replacement of the drilling rig. located in 6.000 barrels of NGLs. averaging net daily production of 119.572 m).000 barrels of NGLs during 2010. A total of 27 new Outer Continental Shelf leases were added to the exploration portfolio following the Gulf of Mexico Lease Sale 213 (Central Planning Area) in further support of this deep-gas program. The company drilled 50 development and delineation wells during 2010 and participated in two deep-gas exploration wells.000 feet (2. The Perdido development is expected to include a total of 21 wells.000 barrels per day.United States Upstream In April 2010. however. Also in late February. The development includes a producing host facility in which Chevron has a 37.S. semi-submersible facility. Deep-gas exploration is focused on a series of trends and prospects with subsurface targets below The development utilizes subsea wells and separation facilities with tieback to a spar floating production facility. the Marine Well Containment Company. approximately 250 miles (402 km) south of Houston. the U.S. Production was reestablished during third quarter 2010. Malo Tubular Bells Blind Faith Buckskin GULF OF MEXICO Chevron Activity Highlight Shelf Chevron is one of the largest producers of crude oil and natural gas on the Gulf of Mexico shelf. three wells were online. provided that operators certify compliance with new rules and requirements.500 feet (1. located in approximately 8. Blind Faith is a four-well subsea development with a tieback to a deep draft. Chevron and several other major energy companies announced plans to build and deploy a rapid response system that will be available to capture and contain oil in the unlikely event of a potential future well blowout in the deepwater Gulf of Mexico. Silvertip (60 percent nonoperated working interest) and Tobago (57.
Malo The Jack and St. Tubular Bells Chevron has a 30 percent nonoperated working interest in the Tubular Bells unitized area encompassing Mississippi Canyon Blocks 681. Facility construction activities commenced in 2009 with the subsea system and topsides modifications to the host facility.000 barrels of crude oil (4.Upstream United States Tahiti In 2010. Chevron is the operator with a 56. and maximum total daily production is expected to be 42.000 barrels of oil-equivalent. Development Big Foot Work continues on the 60 percent-owned and operated Big Foot Project. and water injection start-up is expected to occur in 2012. Malo development. Other Deep Water The company’s remaining deepwater production was from the Genesis. Work on the subsea system. At the end of 2010. and a final investment decision is anticipated in 2012.7 percent interest. The project includes three water injection wells. Tahiti 2 Tahiti 2 is the second development phase for the producing Tahiti Field and is designed to increase recovery from the main producing interval and maintain well capability at the facility capacity of 125. At the end of 2010. and a final investment decision was made in December 2010. 758 and 759 and a portion of Blocks 802 and 803) and a 51 percent interest in St. Chevron operates and holds a 58 percent interest in the Tahiti Field.000 net). First production has been delayed due to a mechanical issue with the production riser system.1 billion. plus production from third-party tiebacks. which is estimated at a maximum total daily rate of 94. Caesar/Tonga The Caesar and Tonga partnerships formed a unit agreement for the area consisting of Green Canyon Blocks 683.300 ft (1. and a subsea tieback to a nearby third-party production facility. The project has an estimated production life of 30 years. and start-up is expected in 2014.3 billion.7 billion. A subsea tieback to a planned third-party host has been selected as the development concept. which includes the Caesar. FEED commenced in fourth quarter 2010. At the end of 2010. Drilling began on the first water injection well in September 2010.000 net) and 16 million cubic feet of natural gas (8 million net).8 percent equity interest in St. proved reserves had not been recognized. two additional production wells and the facilities required to deliver water to the injection wells. 715. The final investment decision was made in third quarter 2010 with total project costs estimated at $2.500 feet (8.000 barrels of oil-equivalent per day to accommodate production from the Jack/St. two appraisals and a delineation well. Total daily production in 2010 from Petronius and the nearby Perseus Field averaged 15. 16 Chevron Corporation 2010 Supplement to the Annual Report . Petronius and Perseus fields. FEED activities continued in 2010 and a final investment decision was reached in October 2010. Assessment of development concepts is ongoing for the appraised resource potential on the west and south flanks of the Mad Dog Field outside the drilling radius of the existing spar floating production facility.000 barrels of crude oil (7.000 feet (2. Tonga and West Tonga fields. and total potentially recoverable volumes from the Tahiti Field are estimated at 400 million to 500 million oil-equivalent barrels. and first oil is expected in 2014. 725 and 726 and the northwest quarter of Block 727. including two development sidetracks completed in 2009. Total daily production at Genesis during 2010 averaged 8. 724. 42 million cubic feet of natural gas (24 million net) and 8. Jack/St. Topsides modifications were completed in 2010. 674. Mad Dog II Development Project An appraisal well drilled in 2009 on the south flank of Mad Dog confirmed a significant resource base in this area of the field. proved reserves had not been recognized for the Tahiti 2 project. Development plans include a total of four wells. Project costs are estimated at $4. Total project costs for the initial phase of the development are estimated at $7. The development plan is for a 15-slot drilling and production extended tension leg platform. The field has an estimated production life of 20 years. Malo from a partner. Chevron added 15 new leases to its deepwater portfolio as a result of bid awards stemming from the Gulf of Mexico Lease Sale 213 (Central Planning Area) in early 2010. 770 and a portion of Block 726. Chevron has a 25 percent nonoperated working interest in this discovery.134 m) of water and with a reservoir depth of 26. total daily production averaged 108.077 m).000 barrels of crude oil per day. 677 and 678). Maximum total daily production is expected to reach design capacity of about 79. proved reserves had not been recognized for these exploration prospects.000 barrels of oil-equivalent. Chevron is the operator with a 50 percent interest in both fields. At the end of 2010. The field has an estimated production life of 30 years. Chevron holds a 20.5 billion. Exploration During 2010.000 barrels of NGLs (4. proved reserves had not been recognized for these fields. Both fields are company-operated and combined have total potentially recoverable resources in excess of 500 million oil-equivalent barrels. Malo fields are located within 25 miles (40 km) of each other and are being jointly developed with a host floating production unit (FPU) located between the two fields. The area is located in 4. proved reserves had not been recognized for this project. 727. following the company’s acquisition in March 2010 of an additional 9. with a final investment decision targeted for second quarter 2011. Drilling operations on two of these exploration wells were halted in second quarter 2010 as a result of the deepwater drilling moratorium in the Gulf of Mexico.3 percent nonoperated working interest in the unitized area. The first appraisal well at Knotty Head was completed in March 2010 and interpretation of well results continues into 2011. Studies to screen and evaluate future development alternatives continued into early 2010. The facility is planned to have a design capacity of 177. commissioning of the topsides and the initial well completion program carried over into 2011. Malo (Walker Ridge Blocks 673.000 net) and 9 million cubic feet of natural gas (5 million net). the company participated in five deepwater exploratory wells – two wildcats. Tahiti is a subsea development with tieback to a truss-spar floating production facility. including drilling of the first appraisal well at the 55 percent-owned and operated Buckskin discovery. Project costs are estimated at $1. Chevron has a 50 percent interest in Jack (Walker Ridge Blocks 714.000 barrels of crude oil (63. 683. Located in 7. At the end of 2010. located in Walker Ridge Block 29. A decision on the development concept followed by the project moving into the FEED stage is expected to occur in the second-half 2011. proved reserves had not been recognized for this project. A delineation well was completed in July 2010 and is producing back to the floating production facility. 682. At the end of 2010. located in Green Canyon.000 net).311 m) of water. Proved reserves have been recognized for this project.000 barrels of oil-equivalent. The project completed front-end engineering and design (FEED) in June 2010. development is geologically and technically challenging.
Expansions. The 2010 work plan focused on optimization of the existing wells and facilities.United States Upstream Other U. where first oil commenced in mid-2010. and Slaughter. East Texas and the Rockies. Rangely in Colorado. the company continued the appraisal of the Haynesville shale gas formation in East Texas. The full development plan includes drilling more than 2. CO2 projects are ongoing in fields such as Vacuum in New Mexico. The company commenced a large 3-D seismic survey of approximately 600 square miles (1. Completion activities continued in 2010. In West Texas. including the interests in two regional pipelines. Inc. the company has operated and nonoperated working interests in the Cook Inlet and holds nonoperated working interests on the North Slope. Dollarhide and Reinecke in West Texas. portfolio. with final results from the survey expected in 2012. bringing the full development potential up to 350 million cubic feet per day. This program is highly scalable. During the year. Areas The company produces crude oil and natural gas across the mid-continental United States – primarily in Colorado. Capital spending is focused in the Permian Basin. advances in drilling and completion technologies have opened up widespread targets in the Wolfcamp and associated “tight” rock formations. and construction of compression and dehydration facilities to process 65 million cubic feet per day of natural gas production was completed in 2009. An estimated 3 trillion cubic feet of natural gas are potentially recoverable from this project. The company continues to evaluate data from other Haynesville operators and from earlier Antrim Shale appraisal drilling in preparation for Michigan resuming drilling in 2012. facility and equipment improvements. the company drilled 130 wells and participated in drilling 287 partner-operated wells. completion of previously drilled wells. and future work is expected to be completed in multiple stages. In 2010. the company’s total net production surpassed 5 billion barrels of oil-equivalent.S. using both horizontal and vertical drilling. Texas..S. Additional production growth is expected from both operated and nonoperated interests in these formations in future years through continued use of these advanced drilling and completion technologies.000 barrels. the company announced plans to sell its interests in the Cook Inlet. In Alaska. 773 million cubic feet of natural gas and 29. As a result of the February 2011 acquisition of Atlas Energy.000 acres (142 sq km). Pennsylvania Marcellus Shale UNITED STATES New Mexico Vacuum Oklahoma Slaughter Reinecke Dollarhide Texas Haynesville Alaska MEXICO Chevron Activity Highlight Conventional Resources In this portion of the U. new producing areas were added.000 barrels of crude oil. Unconventional Resources Chevron continues to pursue opportunities in unconventional oil and gas resources. The company expects an additional 89 wells to be completed and brought online by 2013. and additional development drilling.S. In the Piceance Basin in northwestern Colorado. The LPG fracture fluid pilot is planned to begin in late 2011. artificial-lift techniques. composed of 91. Texas and Wyoming – and in Alaska. enhanced-recovery methods such as water and carbon dioxide (CO2) injection. net daily oil-equivalent production outside California and the Gulf of Mexico averaged 249. An eight-mile (13-km) pipeline to transport the natural gas to a gathering system was completed in 2008. Oklahoma. the company is continuing development of a 100 percent-owned and operated natural gas field consisting of approximately 35. Proved reserves for subsequent stages of the project had not been recognized at the end of 2010. Chevron Corporation 2010 Supplement to the Annual Report 17 . including the company’s Lupin Project. Operations in the Permian date back to the 1920s and in 2010. with 115 completed wells available to supply natural gas to the central processing facility. and designing a pilot to test liquefied petroleum gas (LPG) as an alternative fracture fluid. a 100 percent-owned and operated interest. Wyoming Rangely Piceance Basin Colorado In 2010.000 wells from multiwell pads over the next 30 to 40 years.554 sq km) across Panola County. where an estimated 2 trillion cubic feet of natural gas is potentially recoverable from Chevron’s leases. are proceeding in these fields at a pace to optimize facility utilization rates while balancing CO2 demand and supply. In October 2010. primarily in southwestern Pennsylvania and Michigan. the company’s U. New Mexico. Chevron is one of the largest hydrocarbon producers in the Permian Basin of West Texas and southeastern New Mexico. the company is managing production decline rates in existing conventional fields with a combination of well workovers.000 barrels of NGLs. CANADA Chevron has substantial reserves and resources in the United States recoverable through CO2 enhanced-recovery methods.
000 miles (1. and consists of approximately 850. The FEED phase commenced in third quarter 2010. The project was subsequently approved by the joint venture. Further progress was made in 2010 with completion of an extensive core study. The acquisition provides an attractive natural gas resource position in the Appalachian basin. which achieved first production from the Jackpine Mine in third quarter 2010. Brazil. sustainable and scalable recovery technology.6 percent nonoperated working interest in the planned Hebron Field development located offshore the province of Newfoundland and Labrador.440 sq km) of the Marcellus Shale and Utica Shale.000 barrels during 2010 in these countries represented about 9 percent of the companywide total. is expected to be completed in second quarter 2011.000 net) of synthetic oil. total daily production from oil sands averaged 126.000 barrels (24. Expansion of the Scotford Upgrader. with further government approval of required agreements received in early 2011.000 barrels (28. The AOSP Expansion 1 Project. In 2007. contains a significant oil shale resource base.000 acres (809 sq km). Argentina.Upstream Other Americas The Piceance Basin. the company increased its shale gas exploration leases in Alberta to approximately 200. with plans to commence an appraisal drilling program in the second-half 2011. in the Duvernay formation. an affiliate that owns more than 1. proved reserves had not been recognized for this project. Regulatory. Atlantic Canada Production Chevron holds a 26. Average total daily crude oil production in 2010 was 154.609 km) of natural gas gathering lines servicing the Marcellus. development and demonstration lease by the Bureau of Land Management for the purpose of demonstrating a viable commercial technology for the extraction of hydrocarbons from oil shale in the Piceance Basin. Western Canada Production The company holds a 20 percent nonoperated working interest in the Athabasca Oil Sands Project (AOSP) and the AOSP Expansion 1 Project near Fort McMurray. continued success toward converting kerogens to movable oil. federal and provincial government approval of the development plan was received in late 2010.000 net).000 barrels in early 2011. the Hibernia and Ben Nevis Avalon.9 percent nonoperated working interest in the Hibernia Field that comprises two key reservoirs. Chevron was granted a research. At the end of 2010. also part of the project. BEAUFORT SEA Northern Canada Exploration Northwest Territories CANADA Nunavut Athabasca Oil Sands Project Shale Gas Fort McMurray Leases Alberta Calgary Saskatchewan Quebec Ontario Manitoba Block 4 ATLANTIC OCEAN Newfoundland and Labrador Exploration License 1109 Orphan Basin St. proved reserves had not been recognized for the HSE unitized blocks. Greenland. In 2010. Next steps entail continuing to collect baseline ground water data while developing an environmentally responsible. and the project has an expected economic life of 30 years.000 total acres (1. acquisition of multicomponent and cross-well seismic data.000 barrels of synthetic oil from oil sands (24. The acquisition provides a 49 percent interest in Laurel Mountain Midstream. with the Newfoundland and Labrador government’s energy corporation acquiring a 10 percent working interest in February 2010 as part of the project approval conditions. In 2009. and exploration and discovered resource interests in the Mackenzie Delta and Beaufort Sea region of Canada’s western Arctic. Development Hebron Chevron holds a 26. which include Antrim Shale producing assets and approximately 380.000 barrels to more than 255.000 total acres (3.6 percent nonoperated working interest in the unitized HSE areas of the Hibernia Field. Colombia.000 net). Chevron has a 23. Chevron acquired Atlas Energy. Exploration Through year-end 2010. Canada Chevron has ownership interests in oil sands projects and shale gas acreage in the province of Alberta. exploration and development projects offshore in the Atlantic region. This heavy-oil field is estimated to contain between 400 million and 700 million of potentially recoverable barrels.000 net). GREENLAND HUDSON BAY UNITED STATES Chevron Activity Highlight Crude Oil Field Oil Sands 18 Chevron Corporation 2010 Supplement to the Annual Report . and modeling reservoir stimulation.537 sq km) in the Antrim and Collingwood/Utica Shale. Inc. At the end of 2010. First production from the HSE unitized area is expected in late 2011. A concrete gravity-base platform is planned to develop the field using directional drilling techniques. is expected to increase daily production design capacity from oil sands by 100. 30 million cubic feet of natural gas (4 million net) and 126. In February 2011. Exploration planning activities on these 100 percent-owned and operated leases have begun.000 barrels of crude oil (29. primarily located in southwestern Pennsylvania. Total daily production in 2010 from Canadian operations was 223. The acquisition also provides assets in Michigan. Hibernia Southern Extension (HSE) The HSE development is expected to stem the production decline from the Hibernia Field. along with other Rocky Mountain basins. John’s Hibernia Terra Hebron Nova Other Americas In Other Americas. Chevron completed a 19-well hydrology testing program as a first step in attempting to unlock this resource. a regional and local fracture characterization study. The development of these unitized areas requires the drilling of producing wells from the existing Hibernia concrete gravity-base platform and subsea drilling of supporting injection wells. Net daily oilequivalent production of 247. and bitumen is extracted from the oil sands and upgraded into synthetic oil using hydroprocessing technology. proved reserves had not been recognized for any of these areas. LLC. the company is engaged in exploration and production activities in Canada. Oil sands are mined from both the Muskeg River and Jackpine mines. Trinidad and Tobago. At the end of 2010. and Venezuela. Alberta.
PapaTerra and Maromba (37.602 m). In the Santos Basin.040 sq km).537 feet (2. In the Beaufort Sea. Production During 2010.2 percent nonoperated working interest in this exploration license. The company has a 30 percent nonoperated working interest in this concession. Chevron sold its interest in the Puesto Prado.000 net). total daily production averaged 50. Development Maromba Evaluation of the field development concept continued in early 2011 for Maromba. Drilling operations on the second Orphan well were completed in mid-2010.060 sq km). Chevron holds a 29. Argentina Chevron holds operated interests in five concessions in the Neuquen Basin.. Frade includes subsea systems and flowlines tied back to a floating production. respectively). with planned additions of five development wells and three injection wells by the end of 2011. Greenland Exploration: Evaluation of seismic data for License 2007/26.800 acres (2.5 million acres (6. Additionally. As of early 2011. Maximum total daily production of 68.000 barrels of crude oil (23. there are two exploration licenses that are 100 percent-owned and operated. the company holds a 20 percent nonoperated working interest in the deepwater Atlanta and Oliva fields. Las Bases and El Sauce fields in the Neuquen Basin in 2010. total daily production averaged 48. At the end of 2010. In 2010 there were no exploration activities on these leases.7 percent-owned and operated). At the end of 2010. Brazil Chevron holds working interests in three deepwater fields in the Campos Basin: Frade (51. commenced in 2010 and is planned to continue in 2011.000 barrels of crude oil and 25 million cubic feet of natural gas is expected to be realized in mid-2011. totaling 574. proved reserves had not been recognized for any of these areas.Other Americas Upstream Exploration Chevron operates and holds a 50 percent interest in an Orphan Basin exploration license totaling approximately 1. set a new record for deepwater wells drilled in Canada.000 net) and 7 million cubic feet of natural gas (5 million net).000 barrels of crude oil (31.8 percent to 100 percent. proved reserves had not been recognized for either of these exploration prospects.000 acres (2. 230 miles (370 km) northeast of Rio de Janeiro. storage and offloading vessel (FPSO).5 percent and 30 percent nonoperated working interests. Eight development wells and four injection wells had been completed as of year-end 2010.128 m) of water. offshore Disko Island West Greenland. Working interests range from 18. which expires in 2033. Planning for a seismic program is under way at the 100 percentowned and operated Exploration License 1109. One license was acquired in 2010 and covers 508. Chevron has drilled two exploration wells in the Orphan Basin and is continuing to assess plans for further exploration. In 2010. and the water depth. Production During 2010. The company also holds additional nonoperated minor working interests in other offshore licenses in the Beaufort Sea.323 sq km) and located approximately 75 miles (121 km) offshore Labrador. Development drilling is continuing. proved reserves had not been recognized for this project. The concession that includes the Frade Project expires in 2025. Chevron also holds a 14 percent interest in Oleoductos del Valle S. the company continued the development of El Trapial Field with sequential projects to reduce production declines.A. Chevron holds a 34 percent nonoperated working interest in the offshore Amauligak discovery and is continuing to assess development concept alternatives. Northern Canada Exploration Chevron holds a 25 percent nonoperated working interest in several onshore exploration leases in the Mackenzie Delta region of the Northwest Territories. which covers Block 4. which owns and operates a crude oil pipeline from the Neuquen producing area to the Atlantic coast. at 8. TRINIDAD AND TOBAGO Dolphin Deep Cardon III Chuchupa Starfish Manatee Ballena Dolphin LL-652 Loran Riohacha Plataforma Deltana Block 3 Hamaca Boscan Carabobo 3 VENEZUELA COLOMBIA ATLANTIC OCEAN BRAZIL PACIFIC OCEAN ARGENTINA Maromba Oliva Frade Papa-Terra Atlanta Neuquen Basin Leases Chevron Interest Chevron Corporation 2010 Supplement to the Annual Report 19 . At the end of 2010.700 feet (1. Frade The Frade Field lies in approximately 3.
Loran is scheduled to provide the initial natural gas supply for the Delta Caribe liquefied natural gas (LNG) plant. and development drilling is expected to begin in the second-half 2011. Chevron conducted a seismic survey of the offshore. 134.2 percent interest in Petroindependiente. Exploration Chevron operates and holds a 60 percent interest in Block 2 and a 100 percent interest in Block 3 in the offshore Plataforma Deltana region. Chevron operates and holds a 100 percent interest in the Cardon III Block.000 barrels of crude oil (26. At the end of 2010. Petropiar Chevron holds a 30 percent interest in Petropiar. proved reserves had not been recognized for this exploration prospect.000 net). During 2010. Exploration Evaluation of the deepwater Atlanta and Oliva fields continued in 2010. which includes the Dolphin and Dolphin Deep producing natural gas fields. The project is located in Venezuela’s Orinoco Belt and has a total design capacity for processing and upgrading 190. Production During 2010.000 barrels of liquids (25. Petroboscan The company holds a 39.189 m) of water. the project would be Chevron’s largest investment in Brazil. proved reserves had not been recognized for this project. a Chevron-led consortium was selected to participate in another heavy oil project in the Orinoco Belt in 2010. The single-phase development project involves an FPSO and a tension leg well platform with a planned total daily capacity of 140. Production Total daily production in 2010 averaged 714 million cubic feet of natural gas (249 million net). located north of Lake Maracaibo in the Gulf of Venezuela offshore region.000 barrels per day of extra heavy crude oil (8. Venezuela Chevron’s production activities in Venezuela are performed by two affiliates in western Venezuela and one affiliate in the Orinoco Belt. At the end of 2010.2 percent interest in Petroboscan. near-shore and onshore development areas. When completed. Petroboscan total daily production averaged 96. In August 2010. and the evaluation of the results are ongoing. an overarching treaty supporting unitization was signed by the governments of Venezuela and Trinidad and Tobago.5 degrees API gravity) into 180. These volumes were sold under four sales contracts.000 net) and 15 million cubic feet of natural gas (6 million net). Venezuela’s first LNG project. Additionally.000 net) and 52 million cubic feet of natural gas (9 million net). proved reserves had not been recognized for this field. In 2007. Production Total daily production during 2010 from the Dolphin and Dolphin Deep fields averaged 560 million cubic feet of natural gas (223 million net). which operates the onshore Boscan Field in western Venezuela under a 20-year contract expiring in 2026. in which Chevron has a 37.000 barrels of crude oil. which includes the Loran Field. which operates the LL-652 Field in Lake Maracaibo under a 20-year contract expiring in 2026. At the end of 2010. During 2010.900 feet (1. This well extended the six shallow gas sands discovered in Venezuela’s Loran Field in Block 2 into Trinidad and Tobago. Petroindependiente The company holds a 25. a Loran/Manatee field-specific treaty was signed by the two governments. proved reserves had not been recognized for either field. During 2010. total daily production averaged 101. Fifteen development wells and two water injection wells were drilled during 2010.000 barrels of liquids (1. Chevron also operates and holds a 50 percent interest in the Manatee Area of Block 6(d). Exploration The company drilled a successful exploratory well in the Manatee Area of Block 6(d) in 2005.000 barrels of synthetic oil (28. The concession expires in 2032. a Declaration of Commerciality was accepted by the Venezuelan government in March 2010. Enhanced oil recovery studies continued through 2010. The company operates the offshore Chuchupa and the onshore Ballena and Riohacha natural gas fields as part of the Guajira Association contract. At the end of 2010.000 barrels of synthetic oil (28.5 percent nonoperated working interest. Trinidad and Tobago The company has a 50 percent nonoperated working interest in three blocks (Block E.000 net) and 49 million cubic feet of natural gas (10 million net) during 2010. proved reserves had not been recognized for either of these exploration prospects. Build-Operate-Maintain-Transfer agreement based on prior Chuchupa capital contributions. higher-value synthetic oil (26 degrees API gravity). In Block 2.Upstream Other Americas Papa-Terra The Papa-Terra Project. Colombia Chevron’s activities in Colombia are focused on the production and commercialization of natural gas from properties in the Caribbean Sea and adjacent coastal areas of the Guajira Peninsula. Block 5(a) and Block 6) in the offshore East Coast Marine Area of Trinidad. First production is expected in 2013. Chevron has a 10 percent nonoperated interest in the LNG facility. A final investment decision was reached in January 2010.000 net) and 116 million cubic feet of natural gas (25 million net). 20 Chevron Corporation 2010 Supplement to the Annual Report . has potentially recoverable crude oil of approximately 380 million barrels and lies in about 3. which operates the Hamaca Project. At the end of 2010.000 barrels of lighter. Total daily production averaged 134. Chevron also has interests in three offshore exploratory blocks – two in the Plataforma Deltana region and one off the northwest coast of Venezuela. Major construction contracts were awarded in 2010. Chevron receives 43 percent of the production for the remaining life of each field and a variable production volume from a fixed-fee. Petroindependiente total daily production averaged 5.
At the end of 2010. Petroindependencia. Venezuela’s national oil and gas company. and work toward commercialization of the Carabobo 3 Project was initiated.000 barrels of LPG (6. Liberia. Mafumeira Sul. and as of year-end 2010.000 barrels of liquids (116.. Net daily oil-equivalent production of 469. Pointe-Noire ATLANTIC OCEAN Kitina REPUBLIC OF THE CONGO Djeno Terminal Wamba Nsano ANGOLA (CABINDA) Moho-Bilondo Moho Nord LIANZI DEVELOPMENT ZONE Benguela Tomboco Lobito Lianzi Landana Nkossa Nsoko Banzala Lomba Kuito Takula Malongo Numbi Malongo Terminal Nemba Vuko Belize Limba Kungulo Malange Vanza AREA A Longui Bomboco BLOCK 0 Mafumeira Tombua Lucapa BLOCK 14 Negage Kokongo N'Dola Sanha Gabela AREA B Libwa Tshiala East Angola LNG Project ANGOLA DRC Chevron Activity Highlight Crude Oil Field Natural Gas Field Terminal Chevron Corporation 2010 Supplement to the Annual Report 21 . is located in the Southern Malongo Area in 200 feet (61 m) of water. Work on the fourth project. continued during 2010 with expected completion in fourth quarter 2011. approximately 75 miles (120 km) of subsea pipelines and 51 wells.000 barrels during 2010 in these countries represented about 17 percent of the companywide total.000 barrels of LPG. Democratic Republic of the Congo. proved reserves had not been recognized for this project. Malongo Flare and Relief Modification. At the end of 2010. S. Africa In Africa. The company also has a 20 percent nonoperated working interest in Block 2. targeting the northern portion of the field. and a final investment decision is expected in fourth quarter 2011. a concession adjacent to the Cabinda coastline. The first stage of the project is expected to be completed in second quarter 2011 with the start-up of natural gas injection on the existing South Nemba platform. total daily liquids production averaged 580.000 net) and 15.000 net). Mafumeira Sul The second stage of the Mafumeira field development.2 percent interest in Block 0. located west of Block 0.000 barrels.000 barrels of LPG (1.3 percent nonoperated working interest in the onshore Fina Sonangol Texaco (FST) concession area. proved reserves had not been recognized for this project.A. A joint operating company. Nemba Enhanced Secondary Recovery & Flare Reduction Work continued on the Nemba Enhanced Secondary Recovery & Flare Reduction Project. Gas injection from the new platform is planned to start in 2014.000 barrels of crude oil in fourth quarter 2010. Chevron’s interest in the project is 34 percent. flaring has been reduced by approximately 65 million cubic feet of natural gas per day. During 2010. and a 16. Development Gas Management Projects The Area A Gas Management Projects are a series of four projects designed to eliminate flaring of natural gas by reinjecting excess natural gas into the various Takula and Malongo reservoirs. The development plans include a central processing facility. which is adjacent to the northwestern part of Angola’s coast south of the Congo River. completed development drilling and achieved maximum total daily production of 57. Three of the four projects started up in 2008 and 2009. Area B has six producing fields and averaged total daily production of 119. Mafumeira Norte.000 net) in 2010. two wellhead platforms. The maximum total daily production is expected to reach 110. Area A comprises 15 producing fields and averaged total daily production of 227. The Block 0 concession extends through 2030.000 barrels of crude oil and 10. Development plans include enhancing crude oil recovery by increasing natural gas injection and eliminating routine flaring at the North and South Nemba platforms.000 net). Chad. and a 31 percent interest in a production-sharing contract (PSC) for deepwater Block 14. Angola The company operates and holds a 39. The next stage of the project includes additional compression facilities on a new platform.0 billion. with FEED planned to start in second quarter 2011. was formed in May 2010. a Chevron-led consortium was selected to participate in a heavy-oil project in three blocks within the Carabobo Area of eastern Venezuela’s Orinoco Belt. Block 0 Production Block 0 is divided into areas A and B and contains 21 fields that produced a total daily average of 365.000 barrels of crude oil and condensate (37. The total estimated cost for the first stage is $1. Mafumeira Norte The first stage of the Mafumeira Field development.000 barrels of crude oil (72. and the modifications are expected to enhance total daily liquids production by 16. The consortium holds a combined 40 percent interest with Petróleos de Venezuela. holding the remaining interest. Nigeria and Republic of the Congo.000 net).Africa Upstream In February 2010.000 net) and 4. Greater Vanza/Longui Area (GVLA) Development concept selection studies continued during 2010. which will be connected to the existing South Nemba platform. FEED began in January 2010. the company is engaged in exploration and production activities in Angola.000 barrels (152.
Development activities remain suspended pending final agreements between the two countries. a portion of the Negage Development Area situated in the southwest corner of Block 14 was designated to be in the Zone of Common Interest. completed in June. At the end of 2010. two exploration wells were drilled at the northern edge of the producing Moho-Bilondo Field. Exploration During 2010. Studies were planned to evaluate the feasibility of producing these reservoirs by tying back to the existing Moho-Bilondo facilities. Project construction is scheduled to begin in the second-half 2011 with completion planned for 2013. Democratic Republic of the Congo Chevron has a 17. which is in 270 feet (82 m) of water. Production Average total daily production in 2010 from Republic of the Congo fields was 124.000 barrels of liquids (34. all of which are offshore. Proved reserves have been recognized for producing operations associated with this project.000 net). Nsoko and Moho-Bilondo permit areas and a 29. The first well was completed in February with successful flow tests from pre-salt zones beneath the Pinda formation of the planned GVLA development. Development drilling is expected to continue with maximum total daily production of 75. Development The Lianzi Project continued FEED through the end of 2010. proved reserves had not been recognized for this project.000 barrels of liquids (2. Development and production rights for these fields expire in 2028. Angola.000 barrels of NGLs. Tombua-Landana Development drilling continued during 2010.3 percent interest in the Lianzi unit located in a joint development area shared equally between Angola and Republic of the Congo. 2019 and 2027.000 barrels of crude oil was reached in fourth quarter 2010. Exploration During 2010. including the installation of the roof on the first of four LNG tanks. The project is expected to enter production in 2012. The development plans include a wellhead platform with production from 12 wells tied back to existing infrastructure. was not successful.000 net) in 2010. a cooperative arrangement between Angola and Democratic Republic of the Congo. Kuito.2 million-metric-ton-per-year LNG plant. 22 Chevron Corporation 2010 Supplement to the Annual Report . Malange A new development area was granted at Malange Field in 2010 after a successful appraisal well was drilled in 2009. Construction continued throughout 2010. The development plans include 87 miles (140 km) of offshore pipeline routed under the Congo River subsea canyon. Maximum total daily production of 93. respectively. which will operate the 5.000 net). Infrastructure Shared by Blocks 0 and 14 Congo River Canyon Crossing Pipeline Chevron holds a 38. proved reserves had not been recognized for Lucapa. The development and production rights for Moho-Bilondo expire in 2030. Plans are to drill two new exploration wells in Block 0 during the second-half 2011. Angola.5 percent nonoperated working interest in the Nkossa. Development Lucapa Studies to evaluate development alternatives for the Lucapa Field continued throughout 2010. The project scope includes three producing wells and three water injection wells with a subsea tie-back to an existing platform in Block 14. and the anticipated life is in excess of 20 years.000 net) from Benguela Belize–Lobito Tomboco. Block 14 Production In 2010. Kitina and Nkossa expire in 2018. A successful exploration well was drilled in the Lucapa development area in fourth quarter 2010. two exploration wells were completed in Area B targeting pre-salt opportunities. total daily production was 197.0 billion. Processing of additional seismic data in Area A started in mid-year 2010 and is expected to continue through the end of 2011. At the end of 2010. Angola–Republic of the Congo Joint Development Area Chevron is the operator and holds a 31. Negage In 2009. At the end of 2010. Natural Gas Commercialization Angola LNG Chevron has a 36.4 percent interest in Angola LNG Limited. The estimated total cost of the plant is $9. Block 2 and FST Area Production Total daily production averaged 18. At year-end. Republic of the Congo Chevron has a 31. is designed with the capacity to process 1. A final investment decision is planned for fourth quarter 2011.Upstream Africa South N’Dola FEED activities continued during 2010 on the south extension of the N’Dola Field development. The second well. 12 development wells and five injection wells had been completed.000 barrels of crude oil anticipated in second quarter 2011.1 percent interest in the proposed pipeline designed to transport up to 250 million cubic feet per day of natural gas from Angola’s Blocks 0 and 14 to the Angola LNG plant in Soyo.1 billion cubic feet of natural gas per day with expected average total daily sales of 670 million cubic feet of regasified LNG and up to 63. proved reserves had not been recognized for this project.7 percent nonoperated working interest in a concession off the coast of Democratic Republic of the Congo. Development Drilling of development and injection wells continued in Moho-Bilondo during 2010. The development and production rights for Nsoko. At the end of 2010.000 barrels of liquids (23. Production Total daily production in 2010 from seven fields averaged 14. proved reserves had not been recognized for the project.3 percent nonoperated working interest in the Kitina permit area. A final investment decision is anticipated in fourth quarter 2011.000 barrels of crude oil (2. The onshore plant in Soyo. A pipeline right-of-way convention was signed in November 2010 with Democratic Republic of Congo. resulting in crude oil discoveries in two new reservoirs. Tombua and Landana fields. with FEED expected in third quarter 2011.
000 barrels (10. The leases that contain the Agbami Field expire in 2023 and 2024. In March 2010.800 feet (1.000 net). A natural gas exploration well is scheduled for export to world markets. Development Western Niger Delta Construction to rebuild the Olero Creek Flowstation continued in 2010 with project completion anticipated in 2013. predominantly in the onshore and near-offshore regions of the Niger Delta.000 barrels of LPG (2. 190 million cubic feet of natural gas (75 million net) and 5. A final investment decision is anticipated in second quarter 2011.000 net). a subsequent 10-well Phase 2 development program was initiated and is expected to provide 100. In July 2010.000 acres (182 sq km) across OML 127 and OML 128.000 barrels of crude oil (140. 206 million cubic feet of natural gas (86 million net) and 5. Development Agbami 2 In 2009. The Chevron-operated Agbami Field is located in a water depth of 4.000 barrels of crude oil (237. total daily production from 32 fields in the Niger Delta averaged 284.000 barrels (27. Regional studies to identify deep gas prospects were miles (1. The field is one of the largest deepwater discoveries in Nigeria and contains an estimated 1 billion barrels of potentially recoverable liquids. Chevron holds a 25 percent interest in to be drilled in fourth quarter 2011. Ewan Ruta Hely Creek Olure Mejo Nedum Malu Makaraba Dibi Oloye Opolo Meta Tapa Utonana Meren Kito Olomu Delta Abiteye Delta South Warri Sonam Offe Ekura Obokun Kudo TOGO GHANA Konko BENIN Olokola Lagos LNG OML 49 Escravos (EGTL and EGP) OML 95 OML 53 OML 113 Port OML 91 OML 90 Harcourt OML 89 OML 86 OML 52 OML 132 OML 85 OPL 221 OML 139 OML 140 OML 83 OPL 223 OPL 214 OML 127 OML 129 OML 138 OML 128 Swamp Areas Crude Oil Field Mefa Awodi Escravos Okan Mesan NIGERIA Doba CHAD Meji CAMEROON CENTRAL AFRICAN REPUBLIC GULF OF GUINEA Kribi Marine Export Terminal Terminal Chevron Interest Crude Oil Pipeline West African Gas Pipeline Niger Delta Production In 2010.2 percent to 67. Nigeria Chevron operates and holds a 40 percent interest in 13 concessions. proved the producing operations and an approximate 21 percent interest reserves had not been recognized for these exploration prospects. This project also includes rebuilding the existing Dibi permanent facilities that were vandalized in 2003. The Chad producing operations are conducted Omuro Shango Opuekeba Isan West Benin River NIGER under a concession agreement that expires Gbokoda Gbadudu Bime Abigborodo Mina Isan Ojumole in 2030. into a permanent flowstation. total daily production from Agbami averaged 239.000 barrels. The geological structure spans 45.000 net). The first well is scheduled to commence production in the second-half 2011. in the two affiliates that own the pipeline.900 sq km) and are operated under a joint-venture arrangement with the Nigerian National Petroleum Corporation (NNPC). FEED was completed in September 2010. total daily production averaged 524. The Dibi Long-Term Project is designed to integrate the existing Early Production System (EPS) facility.000 net).9 billion. Deep Water Production Agbami In 2010. Work to lay a new pipeline to transport natural gas from Abiteye to the processing facilities at Escravos continued in 2010 with completion planned for fourth quarter 2011. Drilling began in May 2010 and is expected to continue through 2014. which owns a 60 percent interest. Production In 2010. At the end of 2010.Africa Upstream Exploration Shallow-water exploration activities in 2010 included Chad/Cameroon Chevron holds a nonoperated working interest in crude oil fields in reprocessing 3-D seismic data over Oil Mining Lease (OML) 53 southern Chad. with subsea wells tied back to an FPSO. gas sales resumed from the Nigerian Gas Company pipeline. The produced volumes are transported about 665 and OML 95. Total costs for the drilling program are estimated at $1. Chevron Corporation 2010 Supplement to the Annual Report 23 .000 net).000 barrels of total daily liquids production to offset field decline and to sustain a maximum total daily liquids production rate of 250.463 m). In August 2010.2 million acres (8. three fields returned to production in following the repair of the Nembe Creek Trunk Line that was vandalized in 2008. which had been vandalized in 2009.000 net).000 net) and 16 million cubic feet of natural gas (11 million net).070 km) by underground pipeline to the coast of Cameroon ongoing in early 2011. The company also holds acreage positions in 10 deepwater blocks with working interests ranging from 18 percent to 100 percent. Parabe Production Total daily crude oil production in 2010 from seven fields in the Doba Basin averaged 123.000 barrels of crude oil (97. Total daily production from the Dibi EPS averaged 32.000 barrels of LPG (2.3 percent. purchased in 2009. an equity redetermination of the unitization agreement for OML 127 and OML 128 reduced the company’s interest from 68. The concessions cover approximately 2.
proved reserves associated with this project had not been recognized. which is expected in 2012.000 barrels of LPG and condensate. The project scope includes facilities required to develop the Sonam natural gas field in the Escravos area as well as expansion of the Escravos Gas Plant to include a third gas processing train. This discovery lies in approximately 5.4 billion. As of early 2011. As a result of the expansion. Okan and Mefa fields. Proved reserves had not been recognized for these exploration activities at the end of 2010. partners extended a pre-unitization agreement. At the end of 2010. At the end of 2010. prior to entering FEED. procurement. The project scope is expected to be finalized by third quarter 2011. the timing of a final investment decision was uncertain. In 2003. At the end of 2010. total daily input into the facility was 230 million cubic feet of natural gas.461 feet (750 m) of water. Ewan. Isan. The PSC expires in 2023. Exploration Chevron had no exploratory drilling activity in Nigeria in 2010. Engineering. EGTL Chevron and the NNPC are developing a 33. OKLNG plans to build a multitrain naturalgas-liquefaction facility and marine terminal located northwest of Escravos. focused on eliminating routine flaring of natural gas that is associated with the production of crude oil. The company has nonoperated working interests of 20 percent and 27 percent in OPL 214 and OPL 223. The development plan involves subsea wells producing to an FPSO.311 m) of water. construction and installation contract for the gas gathering and compression platform is expected to be signed in second quarter 2011. with start-up scheduled for 2012. A final unitization agreement will be signed in advance of a final investment decision. The total costs for the project are estimated at $8. Two onsite construction contracts were awarded in third quarter 2010. and modifications to nine existing production platforms. proved reserves associated with the project had not been recognized. During 2010. Proved reserves have been recognized for this project.0 billion.800 feet (1. 62 miles (100 km) off the coast of the eastern Niger Delta region. The company’s interest in OPL 247 was relinquished at year-end 2010. which lies in 2. Nsiko Chevron operates and holds a 95 percent interest in the Nsiko discovery in OML 140.Upstream Africa Bonga SW/Aparo The Aparo Field in OML 132 and OML 140 and the third-party-owned Bonga SW Field in OML 118 share a common geological structure and are planned to be developed jointly. Total capital costs for the project are estimated to be $2. and first gas was delivered to the new facilities in June 2010. Opolo. The OAGM project is designed to restore these facilities and supply 125 million cubic feet of natural gas per day to the Nigerian domestic gas market. The geological structure lies 70 miles (113 km) off the coast of the western Niger Delta region in 4.4 billion. Usan Chevron holds a 30 percent nonoperated working interest in this development project in OML 138. development drilling and construction of the FPSO continued. At the end of 2010. The proposed development plan involves subsea wells tied back to an FPSO. The engineering. Olokola LNG Project Chevron has a 19. The FPSO is expected to depart from the fabrication site in second quarter 2011. 24 Chevron Corporation 2010 Supplement to the Annual Report .5 percent interest in the OKLNG Free Zone Enterprise (OKLNG) affiliate. At the end of 2010.000 barrels. The expansion also included infrastructure for offshore natural gas gathering and compression and the addition of a second processing facility to process natural gas from the Meji.000 barrels of liquids per day. Work on the project was approximately 70 percent complete at the end of 2010. Subsurface and surface facility studies are expected to be completed in second quarter 2011. 90 miles (145 km) off the coast of the western Niger Delta region. Delta South. Parabe. Subsurface evaluations and field development planning were completed in 2008. which is scheduled for start-up in 2013. no proved reserves were recognized for this project. Onshore Asset Gas Management (OAGM) Chevron operates and holds a 40 percent interest in six fields collectively referred to as the Onshore Area.000 to 58. respectively. Maximum total daily production of 180. Tapa and Delta fields and transport it to the Escravos Gas Plant for processing and sale. Malu. proved reserves had not been recognized for this project. procurement and offsite fabrication are complete. Gas Supply Expansion Project The Chevron-operated and 40 percent-owned project is designed to deliver 215 million cubic feet of natural gas per day to the domestic gas market and produce 43. The estimated cost of the project is $8. Chevron is expected to have an approximate 20 percent nonoperated working interest in the unit. The project includes installation of a 120 million-cubic-foot-per-day natural gas gathering and compression platform near the existing Meren 1 complex. EGP Phase 3B This Chevron-operated and 40 percent-owned development in Escravos is expected to be completed in 2013. civil unrest in the area resulted in vandalism of the compression infrastructure.000-barrelper-day gas-to-liquids facility at Escravos that is designed to process 325 million cubic feet per day of natural gas from the EGP Phase 3A expansion. A final investment decision is expected in third quarter 2011. The project was delayed in 2009 in order to secure stakeholder alignment on scope. installation of approximately 75 miles (121 km) of subsea pipelines. Construction activities are ongoing. Development activities and FEED are expected to begin once commercial terms are resolved and further exploration drilling is completed. Exploration wells are scheduled to be drilled in third quarter 2011 in the Uge North prospect in Oil Prospecting License (OPL) 214 and the Owowo area in OPL 223.768 m) of water. Natural Gas Commercialization Escravos Gas Project (EGP) Phase 3A Construction on the Chevron-operated and 40 percent-owned EGP Phase 3A expansion was completed in 2009. Chevron is the operator and has a 75 percent interest in the plant. resulting in daily gas sales to the domestic market of 180 million cubic feet and export sales of 8. During 2010. The project is designed to receive natural gas from the Meren.300 feet (1. Proved reserves have been recognized for the project. EGP Phase 3B is a continuation of the company’s Western Delta Gas Development Program. which will operate the Olokola LNG Project. the Escravos Gas Plant’s daily processing capacity increased from 285 million to 680 million cubic feet of natural gas and daily LPG and condensate export capacity increased from 15.000 barrels of crude oil is anticipated within one year of start-up. Construction of the pipelines and modifications to the production platforms continued through 2010. with all large modules and equipment greater than 50 metric tons installed on their foundations.
Net daily oil-equivalent production of 1. Cambodia. GUINEA Production The AIOC’s total daily crude oil production in 2010 averaged 822. The pipeline supplies Nigerian natural gas to customers in Ghana. Bangladesh. Turkey.094-mile (1. Indonesia. and production is scheduled to begin in 2013. Azerbaijan.600 sq km). As alternatives to the primary export pipelines. provided there is spare capacity. the final investment decision was reached at the ACG Chirag Oil Project. Turkey. Russia. Chevron increased its working interest in the AIOC from 10. KAZAKHSTAN UKRAINE RUSSIA Atyrau Korolev Tengiz Novorossiysk BLACK SEA 3921 West Supsa GEORGIA CASPIAN SEA Baku ARMENIA TURKEY AZERBAIJAN ACG IRAN Ceyhan SYRIA Chevron Activity Highlight IRAQ Crude Oil Field Terminal WREP CPC Pipeline BTC Pipeline Karachaganak–Atyrau Transportation System Chevron Corporation 2010 Supplement to the Annual Report 25 .Asia Upstream West African Gas Pipeline Chevron is the largest shareholder in West African Gas Pipeline Company Limited.000 barrels (28. Chevron acquired a 70 percent interest in and is operator of three blocks off the coast of Liberia.3 percent nonoperated working interest in the Azerbaijan International Operating Company (AIOC) and the crude oil production from the Azeri-Chirag-Gunashli (ACG) Project. through Georgia to Mediterranean deepwater port facilities at Ceyhan. to the terminal at Supsa.069. The total estimated cost of the project is $6 billion with maximum total daily production capacity of 185.9 percent interest in the Baku-Tbilisi-Ceyhan (BTC) Pipeline. which transports the majority of the ACG production from Baku.7 billion cubic feet of natural gas (487 million net). China. Chevron also has an 8. SIERRA LEONE LIBERIA Monrovia LB-14 LB-12 LB-11 ATLANTIC OCEAN Chevron Interest CÔTE D'IVOIRE Karachaganak Asia In Asia. Total daily production in 2010 from TCO and Karachaganak was 831. the AIOC could use rail tank cars that connect with a Georgian Black Sea port and/or.000 barrels of crude oil and NGLs (291. Proved reserves were recognized in 2010.000 net) and 1. The WREP runs 515 miles (829 km) from Baku. Benin and Togo for industrial applications and power generation. The deepwater blocks. on the Black Sea and has a capacity of 100. 3-D seismic data was purchased.4 million acres (9. Liberia Exploration In 2010. Development In March 2010. Kazakhstan Chevron has a 50 percent interest in the Tengizchevroil (TCO) affiliate and a 20 percent nonoperated working interest in the Karachaganak Field.3 percent to 11.762-km) BTC pipeline has a capacity of 1. LB-11.000 barrels per day.000 net). and an exploration well is planned for fourth quarter 2011. In September 2010. The 1. Thailand. Azerbaijan. Nigeria – São Tomé e Príncipe Joint Development Zone (JDZ) Chevron divested its 45. Start-up of compression facilities to increase the pipeline capacity to 170 million cubic feet of natural gas per day occurred in February 2011. which is wholly owned by the AIOC.000 barrels of oil-equivalent. Myanmar.9 percent interest in JDZ Block 1 in fourth quarter 2010.3 percent. Azerbaijan Chevron holds an 11. Georgia. which owns and operates the 421-mile (678-km) West African Gas Pipeline.2 million barrels per day. The project is designed to further develop the deepwater Gunashli Field and includes a new 48-slot platform.7 percent interest. TCO production is from the Tengiz and Korolev fields. the Philippines. cover a combined area of 2. In third quarter 2010. Upstream activities are located in Azerbaijan. the Partitioned Zone between Saudi Arabia and Kuwait. LB-12 and LB-14. with a 36. AIOC operations are conducted under a PSC that expires in 2024. and Vietnam. a northern pipeline route that connects to an existing pipeline system in Russia and extends to the Russian Black Sea port of Novorossiysk.000 barrels during 2010 in these countries represented about 39 percent of the companywide total. The AIOC exports the production primarily via the BTC pipeline and the Western Route Export Pipeline (WREP). Kazakhstan.
000 barrels of crude oil (234. The balance of production was moved by rail to Black Sea ports or to Aktau. Substantially all of the exported volumes were transported through the CPC pipeline. for loading onto rail cars. the development of the Muchai compression project progressed with the completion of preliminary construction and development activities at the plant site. Chevron signed a Heads of Agreement (HOA) covering the exploration. The project is planned to be implemented in three phases with capacity increasing progressively until reaching full capacity in 2016. Liquids not exported by these pipelines were sold as unstable condensate into the Russian market.000 net). The project is expected to support additional production starting in 2012 from the Bibiyana. During 2010.000 barrels per day at a total estimated project cost of $5. Development In 2010. proved reserves had not been recognized for these activities. 13 and 14. and then via tanker to Baku. Chevron relinquished its interest in the Silopi licenses in southeast Turkey subsequent to the February 2010 completion of the unsuccessful Lale exploratory well. The initial exploratory well. At the end of 2010.000 barrels per day. Work continued on identifying the optimal scope for the next phase of expansion for the field. Kazakhstan. from Moulavi Bazar in 2028 and from Bibiyana in 2034. In December 2010. Approximately 175. At the end of 2010. Proved reserves have been recognized for this project.000 net) were exported and sold at prices available in world markets. which had started drilling prior to the JOA. and Blocks 13 and 14 (Jalalabad and Moulavi Bazar fields). The company has a 43 percent interest in Block 7 and a 98 percent interest in Blocks 12. the majority of TCO’s crude oil production was exported through the Caspian Pipeline Consortium (CPC) pipeline. Production In 2010.505-km) crude oil export pipeline from the Tengiz Field in Kazakhstan to tanker-loading facilities at Novorossiysk on the Russian coast of the Black Sea. Bangladesh Chevron holds interests in three operated PSCs in Bangladesh covering Block 7. Block 12 (Bibiyana Field). approximately 39. 26 Chevron Corporation 2010 Supplement to the Annual Report .000 barrels per day originating from Kazakhstan and 136.000 to 300.000 barrels of condensate (2. The license covers a 5. At the end of 2010. total daily production averaged 883 million cubic feet of natural gas (404 million net) and 5.000 barrels of liquids (39. the CPC pipeline transported an average of 743. Turkey In September 2010.000 net). Production Total daily production during 2010 averaged 220. Technical and commercial evaluation of the opportunity is ongoing in 2011. CPC partners made a final investment decision to expand the pipeline capacity by 670. Jalalabad and Moulavi Bazar natural gas fields. composed of 607. and operations are conducted under a PSC that expires in 2038. The Future Growth Project will utilize sour gas injection technology developed for SGI/SGP and is expected to increase total daily crude oil production by 250. providing the critical export route for crude oil production from both TCO and Karachaganak. Future plans are under evaluation. The expansion is expected to provide additional transportation capacity that accommodates future growth in TCO production.000 barrels per day of processed liquids (31. Chevron signed a Joint Operating Agreement (JOA) for a 50 percent interest in the western part of License 3921 in the Black Sea. work continued on a fourth train that is designed to increase total liquids-stabilization capacity by 56. proved reserves had not been recognized for this expansion. FEED is scheduled for the second-half 2011. A portion was exported via the Atyrau-Samara (Russia) pipeline. also for shipment by rail to Black Sea ports. with a final investment decision anticipated in 2012. Karachaganak The Karachaganak Field is located in northwest Kazakhstan. development.000 barrels of NGLs (18. TCO continues to evaluate options for an expansion project similar in scale to the SGI/SGP Project. During 2010.000 net) and 840 million cubic feet of natural gas (149 million net). was completed in November 2010 and was unsuccessful. The project has a slight positive impact on field production rates and enables export of the stabilized condensate to world markets. In 2010.000 barrels of crude oil per day to Novorossiysk. production and marketing of hydrocarbons from the Shatsky Ridge Block in the Black Sea.Upstream Asia Tengiz and Korolev TCO is operating and developing the Tengiz and Korolev crude oil fields in western Kazakhstan under a concession that expires in 2033. The rights to produce from Jalalabad expire in 2025. Kazakhstan/Russia CPC The CPC operates a 935-mile (1. Russia In June 2010. In addition. proved reserves had not been recognized for this area. The fourth train is expected to start up in second quarter 2011. Chevron holds a 15 percent interest in the CPC pipeline. The timing of a final investment decision on a preferred development alternative for a Phase III expansion is uncertain. Development The Sulfur Expansion Project is expected to increase TCO’s sulfur-granulation capacity and eliminate routine addition of sulfur inventory at the storage pads. Kazakhstan. The project is scheduled to start up in 2012.000 net). proved reserves had not been recognized for this expansion project.4 billion.000 barrels per day from Russia. Production Total daily production in 2010 averaged 567.000 barrels. At the end of 2010. 822 million cubic feet of natural gas (338 million net) and 44.6 million-acre (22.000 barrels per day of Tengiz crude oil was discharged from the CPC pipeline in Atyrau. TCO continued to increase production from the Sour Gas Injection (SGI) and Second Generation Plant (SGP) facilities. Development During 2010. The development of the field is being conducted in phases.505-sq-km) block located 220 miles (350 km) northwest of the capital city of Ankara. Azerbaijan.
additional development drilling at Moulavi Bazar and an enhanced liquids recovery project at Bibiyana. Development In 2010.000 net) and 1. THAILAND LAOS Myanmar Blocks Bangkok Vietnam Block 122 CAMBODIA ANDAMAN SEA GULF OF THAILAND Phnom Penh VIETNAM Thailand-Cambodia Overlapping Ho Chi Minh City Claim Area Blocks Cambodia Block A Vietnam Blocks B. but is also consumed by the industrial and transportation sectors and the petrochemical industry. Development Construction continued on the 69. Concessions for the producing areas in the Malay Basin expire between 2036 and 2040. Yangon At the end of 2010. proved reserves had not been recognized for the project.000 barrels of crude oil and condensate (70. BANGLADESH Dhaka INDIA Block 7 BAY OF BENGAL Chevron Interest Natural Gas Field The company sells all of the natural gas production to PTT under long-term natural gas sales agreements.1 billion. Exploration In 2010. Operated interests are in the Pattani Basin with ownership interests ranging from 35 percent to 80 percent. the company completed seismic data evaluation and prepared to drill one exploration well in Block 7. Most of the natural gas production from the Yadana Field is purchased by Thailand’s PTT Public Company Limited (PTT) for power plants in Thailand. Chevron has operated and nonoperated working interests in multiple offshore blocks.3 percent nonoperated interest in a pipeline company that transports the natural gas from Yadana to the Myanmar-Thailand border for delivery to power plants in Thailand. The company also has a 28. The well is planned to be completed in mid-2011. The PSC expires in 2028. Chevron’s production in 2010 supplied approximately one-third of Thailand’s total demand for natural gas and half of Thailand’s total liquids output. Myanmar Chevron has a 28. A final investment decision for initial development of a wellhead platform and floating storage and MYANMAR offloading vessel (FSO) is expected in 2011. The natural gas is used mainly in power generation. 48/95 and 52/97 SOUTH CHINA SEA Thailand Blocks Chevron Interest Natural Gas Pipeline Chevron Corporation 2010 Supplement to the Annual Report 27 . Jalalabad Bibiyana Moulavi Bazar Development The Medium Compression Project started commercial operation with one compression train in July 2010 to support additional natural gas demand. Production Total daily natural gas production during 2010 averaged 726 million cubic feet (81 million net).000 barrels per day of NGLs. Chevron also has a 16 percent nonoperated working interest in the Arthit Field in the Malay Basin. The project is designed to produce an estimated 330 million cubic feet per day of natural gas and 18. Production Total average daily production in 2010 was 145.Asia Upstream Other development activities included evaluation of a gas plant expansion at Bibiyana. A 30-year production permit under the PSC is expected to be approved by the government in second quarter 2011. located in the Gulf of Thailand.709-sq-km) Block A. Proved reserves have been recognized for the project. Thailand In the Gulf of Thailand. The estimated total cost is $3.9 percent-owned and operated Platong Gas II project throughout 2010 with the installation of a central processing platform jacket and living quarters module. the company drilled three successful exploration wells in Block A.3 percent nonoperated working interest in a PSC for the production of natural gas from the Yadana and Sein fields in the Andaman Sea.9 billion cubic feet of natural gas (875 million net). proved reserves had not been recognized for these activities. The project is expected to achieve first gas by fourth quarter 2011.2 millionacre (4. Concessions for the producing areas in the Pattani Basin expire between 2022 and 2035. The remaining volumes are dedicated to the Myanmar market. At the end of 2010. Cambodia Chevron owns a 30 percent interest and operates the 1.
Chevron also holds operated and nonoperated working interests in the Thailand-Cambodia overlapping-claims area that vary from 30 percent to 80 percent. The PSCs for Block 16/08.000 sq km).5 percent nonoperated working interest in the Qinhuangdao (QHD) 32-6 Field. Chuandongbei. the company has a 28.3 billion.7 percent nonoperated working interest in offshore Blocks 16/08 and 16/19. Government approval of the relinquishment is expected in mid-2011. 10 and 11. the company has a 32. in September 2010. which cover exploratory acreage of approximately 5. Vietnam The company is the operator of three PSCs in Vietnam. Beijing QHD 32-6 Block 11/19 NORTH KOREA BOHAI BAY SOUTH KOREA CHINA EAST CHINA SEA Chuandongbei Natural Gas Area Hong Kong Block 16/19 Block 16/08 Block 42/05 SOUTH CHINA SEA Block 53/30 Block 64/18 VIETNAM Chevron Interest Crude Oil Field Natural Gas Field 28 Chevron Corporation 2010 Supplement to the Annual Report .2 percent nonoperated working interest in Block 11/19 and a 24. proved reserves had not been recognized for these activities. Additionally. As of early 2011. The pipeline project entered FEED in 2009. the seismic processing work and prospect mapping for Block 122 were completed. At the end of 2010. San Jiao Bei. the company acquired operated interests in three deepwater blocks in the South China Sea’s Pearl River Mouth Basin. the company withdrew from the block. located in the onshore Sichuan Basin. The expected total cost for the offshore development and pipeline projects is $4. analysis of well results and seismic data processing was completed and utilized to prepare for a drilling campaign expected in 2012. The final investment decision for the offshore development project is expected in fourth quarter 2011. In the onshore Ordos Basin. offshore eastern Vietnam. At the end of 2010. At the end of 2010.2 million acres (21. In fourth quarter. 48/95 and 52/97 Development The Block B Gas Development is designed to produce natural gas from the two Malay Basin PSCs for delivery to state-owned Petrovietnam. Blocks B. Chevron has a 20 percent ownership interest in a PSC that covers Block 122. the company relinquished the nonoperated working interests in all previously held blocks (Linxing. a living quarters platform. 11 operated exploratory wells are planned. China Chevron has four operated and four nonoperated PSCs in China. proved reserves had not been recognized for these activities. the company drilled seven exploration wells in the Pattani Basin. Four of the wells. The company is operator during the exploration phase and has a 100 percent interest in Blocks 53/30 and 64/18 and a 59. Targeted maximum total daily production is 490 million cubic feet of natural gas and 4. The project includes installation of wellhead and hub platforms. 13 wellhead platforms were installed and 250 development wells were drilled in the Pattani Basin. proved reserves had not been recognized for the development project. located in the Pearl River Mouth Basin. were successful and were under evaluation to validate further development strategy.4 percent interest in another PSC that covers Block 52/97. In conjunction with the offshore development. six exploration wells were drilled. the QHD 32-6 Field and Block 11/19 expire between 2013 and 2022. these areas were inactive pending resolution of border issues between Thailand and Cambodia. Block 16/19.2 percent interest in Block 42/05. and a central processing platform. Other Vietnam In 2010. an FSO. Future exploration activities in Block 122 could be impacted by an ongoing territorial-claim issue between Vietnam and China. In the South China Sea. The offshore development project entered FEED in 2010. field pipelines. Additionally.000 barrels of condensate. G7/50. Exploration In 2010.4 percent interest in a PSC that includes Blocks B and 48/95 and a 43. Exploration In 2010. In Phu Khan Basin. proved reserves had not been recognized for these activities. Chevron has a 42. The PSC for Chuandongbei expires in 2037.Upstream Asia During 2010. At the end of 2010. Evaluation of the prospects continued. In Bohai Bay. at the Arthit Field.7 percent nonoperated working interest in a pipeline project that would deliver natural gas from the development to utility companies in southern Vietnam. The three unsuccessful exploration wells were drilled in Block G4/50. and five wellhead platforms were installed and 58 development wells were drilled at the Arthit Field. and government approval for the withdrawal is expected by the end of 2011. located in Blocks G6/50. and the engineering and design work is being developed by the operator of the pipeline. Shenfu and Baode) in 2009. the company holds a 16. is 49 percentowned and operated and is composed of several natural gas fields. In the northern part of the Malay Basin offshore southwest Vietnam. The pipeline project received its business license in July 2010. For 2011.
increase recovery and improve reliability from existing reservoirs. Crude oil production from Blocks 16/08 and 16/19 in the South China Sea and Block 11/19 in Bohai Bay was partially restored in the first-half 2010 using temporary FPSOs after the fields were shut-in due to storm damage in 2009. Planned maximum total daily natural gas production is 558 million cubic feet. Production Total daily production averaged 370. In Area 1 through Area 11 of the Duri Field. The Rokan PSC expires in 2021. consisting of more than 90 active fields with total daily production that averaged 182. the company operates two geothermal fields in West Java and a cogeneration plant in Sumatra. Chevron’s interest in a third PSC. the company continued construction of the first natural gas purification plant and initiated development of the Luojiazhai and Gunziping natural gas fields. which are expected by year-end 2011. HZ 25-3 and HZ 25-1 First production from the joint development of the HZ 25-3 and HZ 25-1 crude oil fields in Block 16/19 was achieved in March 2010. During 2010. Construction of a second natural gas purification plant and gathering system in the northern part of the concession is planned to commence in third quarter 2011.000 net) and 46 million cubic feet of natural gas (46 million net) in 2010. four PSCs offshore East Kalimantan and two PSCs onshore in West Papua. Development The company continues to implement projects designed to sustain production. Indonesia Chevron’s operated interests in Indonesia include two onshore PSCs on the island of Sumatra. A final investment decision for Area 13 was reached in May 2010 and is awaiting PACIFIC final development plan and bid award approvals OCEAN from the government of Indonesia.000 barrels of liquids (63. Development also continued in the northern region of the field. South Natuna Sea Block B Total daily production in 2010 from all producing areas in Indonesia averaged 477. respectively. 24 steam injection and 10 observation wells drilled during the year. Duri has been under steamflood since 1985 and is one of the world’s largest steamflood developments. with the project reaching a maximum total daily production rate of 45.7 billion. Execution of the pilot project for a chemical injection process that could further improve recoverability of light oil in Minas and surrounding fields continued. Development Chuandongbei In 2010. and start-up of the initial phase is expected in 2012. was transferred to a local operator in April 2010. was completed in December 2010 with 72 production.000 barrels of crude oil and condensate (18. Mountain Front Kuantan. the majority of Chevron’s Sumatran production came from fields under primary or secondary recovery within the Rokan PSC.000 net) and 46 million cubic feet of natural gas (46 million net) in 2010. The Area 12 expansion. Chevron holds a nonoperated working interest in the offshore South Natuna Sea Block B. and efforts continued to optimize the waterflood program to sustain field production. 58 production wells were drilled during 2010. where approximately 110 million barrels of crude oil are estimated to be potentially recoverable. Sumatra Chevron’s interests in Sumatra include the 100 percentowned and operated Rokan and Siak PSCs. Production is expected to fully resume in third quarter 2011 and in 2013. and an environmental impact study and an exploration well are planned for 2011.000 barrels of crude oil (98. Total project cost is estimated at $4. Ramp-up of steam injection continued.000 net) and 46 million cubic feet of natural gas (13 million net). Upon completion of the project. the full development will include two new sour gas processing plants with an aggregate design capacity of 740 million cubic feet per day.000 net). PHILIPPINES MALAYSIA Siak Block Rokan Block Sumatra MALAYSIA Kutei Basin Kalimantan Sulawesi Maluku West Papua Suoh-Sekincau INDIAN OCEAN Salak Jakarta Darajat Java Nusa Tenggara Timur (NTT) West Papua I & III Blocks Chevron Interest Geothermal Field Chevron Corporation 2010 Supplement to the Annual Report 29 .Asia Upstream Production In 2010. 123 wells were drilled in this area. 80 percent of the field was under steam injection. with total daily production averaging 188. During 2010. In addition. In the deepwater exploration blocks in the South China Sea. total average daily production was 86. In the Minas Field. Proved reserves have been recognized for the project. located northeast of the island of Sumatra. connected by a gas gathering system to five natural gas fields.000 barrels of crude oil (161. In 2010.000 net) and 611 million cubic feet of natural gas (236 million net). 206 production and 16 steam injection wells were drilled during 2010.000 barrels of liquids (187. The development plan includes sequential development of additional northern expansion areas – North Duri Development Area 12 and North Duri Development Area 13. Duri is the largest producing field in the Rokan PSC. Exploration In the Chuandongbei area. drilling is planned to begin for an exploration well by third quarter 2011. a 3-D seismic acquisition program started in fourth quarter 2010. The remaining production from the Rokan PSC is in the Sumatra light oil area.000 barrels of crude oil in September 2010.
100 sq km). The PSC areas are located offshore East Kalimantan in the Kutei Basin. Crude oil is stored at Santan where it is exported by tanker. including operated interests in East Kalimantan (92. additional appraisal drilling is planned in the Kulin and Bekasap fields. In addition. and 2-D seismic acquisition is expected to start in second quarter 2011. the company relinquished its interest in East Ambalat. located in the Tarakan Basin offshore northeast Kalimantan. Total daily production during 2010 averaged 75. During 2010. Drilling for the initial three development phases continued through 2010.1 billion cubic feet of natural gas and 31. Development The company continues to implement projects designed to sustain production. Once the government has approved these agreements. which is expected in the second-half 2011.000 net) and 113 million cubic feet of natural gas (78 million net). The Gendalo-Gehem natural gas project includes two separate hub developments. At the end of 2010. pending approval by the government of Indonesia.000 barrels of crude oil (17. and the onshore receiving facility. A successful appraisal well was also drilled at the Bekasap Field. and an onshore receiving facility. Makassar Strait (90 percent). The East Kalimantan PSC expires in 2018. In 2010. ammonia and methanol complex. During 2011. The third development project is the Extended Reach Drilling Project for the West Seno Field. South Natuna Sea Block B Chevron holds a 25 percent nonoperated working interest in the offshore South Natuna Sea Block B. East Java Sea Basin Exploration A third obligation well in the NE Madura III Block was drilled in 2009 and resulted in a dry hole. In December 2010.000 barrels of liquids in February 2010. government approval for the relinquishment is anticipated in the second-half 2011. Development Block B has a five-phase development project to support two long-term natural gas sales contracts with Malaysia and Singapore. West Papua In June 2010.000 net) and 421 million cubic feet of natural gas (86 million net). the company settled its obligation to participate in three additional exploration wells and relinquished its 40 percent-owned and nonoperated working interest in the PSC. which would further reduce the company’s ownership interest in Rapak and Ganal to 54 percent. the subsea and pipeline components. the Bangka Project development plan was advanced and Chevron approved FEED in the fourth quarter. respectively. Due to the results of this well and the previously drilled exploration wells. Chevron received final government approval to reduce its operated interest in two onshore exploration blocks in western Papua to 51 percent. Natural gas is transported by pipeline to the state-owned Bontang LNG plant and to a fertilizer. The relinquishment is pending government approval. Chevron continued to execute the development program with 22 new wells drilled in 2010. each with its own FPU. Production Block B production is from seven natural gas fields and four crude oil fields. Products are separated offshore in an FPU and are exported by dual subsea pipelines to Santan Terminal.000 barrels of condensate. Proved reserves have been recognized for the project. natural gas and condensate pipelines. The farmout to the Indonesian partner is expected to be completed by yearend 2011. Crude oil and natural gas produced from the northern fields are processed at the company-operated Santan terminal and liquids extraction plant. Additional development drilling in the North Belut Field is planned to continue through 2011. The North Belut Project. there are three deepwater development projects under way. Production Total daily production averaged 33.1 percent and 54. the company’s share of production from the Gendalo-Gehem and Bangka projects will be 55. increase recovery and improve reliability from existing reservoirs in both the shelf and deepwater areas.000 barrels of liquids (4. The natural gas is transported by pipeline for use as fuel gas at the Balikpapan Refinery. under the terms of the Rapak and Ganal PSCs. and natural gas enters the existing Bontang infrastructure. subsea drill centers. The company reached a final investment decision for the project in August 2010.000 barrels of liquids (9. In addition.000 net) and 144 million cubic feet of natural gas (104 million net) in 2010. geologic studies continued on West Papua I and West Papua III blocks. Based on the positive results of the drilling program. the company awarded major FEED contracts for the FPUs. the fourth phase of the Block B development. with total daily production averaging 5. The shelf area averaged 28. The stored crude oil is either exported by tanker or transported by pipeline to the state-owned Balikpapan Refinery.8 million acres (11.0 percent. Rapak and Ganal PSCs. During the year. the majority of Kalimantan production came from 14 producing fields in the shelf area within the East Kalimantan PSC. proved reserves had not been recognized for these projects.000 net) and 31 million cubic feet of natural gas (26 million net) in 2010. the company is required to farm out to an Indonesian partner. Rapak (80 percent) and Ganal (80 percent). The Makassar Strait PSC expires in 2020. The remaining production came from the deepwater West Seno Field in the Makassar Strait PSC.Upstream Asia Exploration Two wells drilled in the Rokan Block in 2010 resulted in discoveries and were placed on production.5 percent). additional seismic acquisition and processing is planned for the second-half 2011. Maximum daily production from the project is expected to be 1. which is anticipated in the second-half 2011. In December 2010. In the shelf area. East Kalimantan Chevron’s operated interests in Kalimantan include four offshore PSC areas that cover approximately 2. Completion of FEED is dependent on government approvals and achievement of project milestones. 30 Chevron Corporation 2010 Supplement to the Annual Report . Chevron finalized an agreement to farm out an 18 percent working interest in the Makassar Strait. Also in 2010. achieved first gas in 2009 and reached a maximum total daily production of 240 million cubic feet of natural gas and 33. Crude oil and natural gas from the southern fields are sent to the company-operated Lawe-Lawe terminal. Appraisal drilling near the Duri Field resulted in defining additional field expansion opportunities to be further assessed by planned 3-D seismic activity.000 barrels of liquids (13.
In September 2010. total daily production from four fields averaged 236. By the end of 2011.000 barrels of condensate (4. Also in West Java. The field supplies steam to a three-unit power plant with a total operating capacity of 259 megawatts. The project is intended to improve natural gas utilization and eliminate natural gas flaring at the Wafra Field. Chevron acquired a 95 percent-owned and operated interest in the Suoh-Sekincau prospect area located in the Lampung Barat Regency. At the end of 2010.000 barrels of crude oil (94. Drilling of one appraisal well was completed in July 2010. the Bawal and South Belut projects were progressed as part of the fifth phase of the development plan for Block B. a small-scale steam injectivity test was initiated in the Second Eocene reservoir. A final investment decision is expected in 2012. which have a combined generating capacity of 637 megawatts. A successful application of steam injection could significantly increase recoverability of the heavy oil from the Wafra Field. Chevron operates and holds a 100 percent interest in the Salak geothermal field in the Gunung Salak contract area. Development The Large-Scale Steamflood Pilot Project was commissioned in 2009 and entailed drilling 16 injection wells and 25 producing wells. A decision to enter FEED for a full field application is expected in 2012. and studies are under way to optimize the next stage of development. At the end of 2010.000 net) and 45 million cubic feet of natural gas (23 million net). which was interested in developing Kuwait’s northern fields. In December 2010. and start-up is expected in 2012. proved reserves had not been recognized for the project. South Sumatra. During 2010. ended in May 2010. supplying up to 300 megawatts of electrical power to Chevron’s Sumatra operations as well as steam in support of the Duri steamflood project. If successful. Production Total daily production from Malampaya during 2010 averaged 350 million cubic feet of natural gas (124 million net) and 13. additional development could potentially add approximately 200 megawatts to Chevron’s geothermal portfolio. During 2010. Chevron develops and produces steam resources for the thirdparty Tiwi and Mak-Ban geothermal power plants. installing water-treatment and steam-generation facilities and commencing steam injection in the First Eocene carbonate reservoir. Geothermal Under an agreement with the Philippine government. 67 wells were drilled. providing further support for expansion of the Large-Scale Pilot to test additional heavy oil resources. The company’s Downstream Technical Service Agreement with Kuwait National Petroleum Corporation for technical assistance with local refineries ended in November 2010. Under the concession agreement. proved reserves had not been recognized for the project. The Malampaya development includes an offshore platform and a 314-mile (505-km) pipeline from the platform to the Batangas onshore natural gas plant. A final investment decision was reached for the Bawal Project in October 2010. Chevron expects to sign a 25-year renewable-energy contract with the government for the continued operation of the steam fields and to supply steam to the two geothermal power plants. Indonesia. Kuwait remains an important business relationship and investment partner for Chevron both in Kuwait and globally. Philippines Chevron holds a 45 percent nonoperated working interest in the Malampaya natural gas field. Partitioned Zone Chevron holds a concession with the kingdom of Saudi Arabia to operate the kingdom’s 50 percent interest in the hydrocarbon resources of the onshore area of the Partitioned Zone between Saudi Arabia and Kuwait. In 2010. IRAQ IRAN KUWAIT Partitioned Zone SAUDI ARABIA ARABIAN GULF Chevron Interest Crude Oil Field Chevron Corporation 2010 Supplement to the Annual Report 31 . Production During 2010. alternatives were being evaluated for the Central Gas Utilization Project. The concession expires in 2039. Indonesia. Proved reserves have been recognized for this project. located about 50 miles (80 km) offshore Palawan Island in water depths of approximately 2.000 net). and 1. the pilot project was injecting steam and production had increased 600 percent over the initial baseline. well workovers and numerous facility-enhancement programs scheduled for 2011 and 2012 are expected to partially offset overall field declines.062 wells were producing at the end of 2010.Asia Upstream During 2010. Chevron has the right to Saudi Arabia’s 50 percent interest in the hydrocarbon resources. Chevron was issued an exploration license for the area by the government of Indonesia and is in the early phase of geological and geophysical assessment.800 feet (853 m). Development drilling. Geothermal and Power Geothermal/Cogeneration The company operates and holds a 95 percent interest in the Darajat geothermal field located in West Java. The field supplies steam to a six-unit power plant with a total operating capacity of 377 megawatts. and Chevron continues to monitor all business opportunities for possible future investment. Kuwait The Chevron-led consortium. Chevron also operates and holds a 95 percent interest in the North Duri Cogeneration Plant in Sumatra.
Chevron acquired a 90 percent-owned and operated interest in this project. The company’s nonoperated working interests range from 16.6 billion cubic feet of natural gas and 20. Chevron’s interests are 57.000 barrels of crude oil (4. Echo Yodel. the preliminary field development plan was submitted to the state and federal regulators for assessment. The company holds a 47. a carbon sequestration project and a domestic natural gas plant with a capacity of 300 terajoules per day. The fields are expected to be unitized prior to development. Chevron signed a farm-in agreement and a JOA with two Philippine corporations to explore. with Chevron’s unitized interest becoming effective upon a final investment decision. At the end of 2010. These discoveries are expected to help underpin further expansion opportunities on the Gorgon Project. During 2010. The development plan includes a three-train.000 barrels of condensate.7 percent nonoperated working interest in the NWS Venture in Western Australia.3 percent interest across most of the area and is the operator of the Gorgon Project.8 percent to 50 percent in other blocks in the Browse Basin. the company’s net daily oil-equivalent production averaged 111. proved reserves had not been recognized for any of the Browse Basin fields. Negotiations continue to convert the remaining nonbinding HOAs to binding SPAs. Production is from the Angel. and progression of studies on the possible expansion of the project.000 barrels of LPG (5. Maximum total daily production from the project is expected to be 2.000 barrels of crude oil and condensate (29. and 2. proved reserves had not been recognized for any of these discoveries. 15.000 net).1 percent for Barrow and 51. Start-up of the first train is expected in 2014. clearing of the plant site.Upstream Australia Kalinga final field development plan scheduled to be submitted in mid2011. which is under a 25-year renewable-energy service contract with the Philippine government. the company holds nonoperated working interests ranging from 24.0 million-metric-ton-per-year LNG facility. Barrow Island and Thevenard Island On Barrow Island and Thevenard Island off the northwest coast of Australia. which would bring combined delivery commitments to about 90 percent of Chevron’s share of LNG from the project. develop and operate the Kalinga geothermal prospect in northern Luzon. Hermes.4 percent for Thevenard. Greater Gorgon Area Chevron holds equity interests in the natural gas resources of the Greater Gorgon Area off the northwest coast of Australia.000 net).7 billion cubic feet of natural gas (458 million net). with the 32 Chevron Corporation 2010 Supplement to the Annual Report . completion of the first stage of the construction village. which combines the development of the offshore Gorgon Field and the nearby Io/Jansz Field as one large-scale project. and total estimated project cost for the first phase of development is $37 billion. In addition. During third quarter 2010. The project’s estimated economic life exceeds 40 years from the time of start-up. Exploration During 2010 and early 2011. Philippines. Browse Basin In early 2010. The joint venture operates offshore producing fields and extensive onshore facilities that include five LNG trains and a domestic gas plant. North Rankin and Perseus natural gas fields and the Cossack. The project was in the early phase of geological and geophysical assessment and could potentially add 100 megawatts to Chevron’s geothermal portfolio. WA-392-P and WA-24-R. respectively. Calliance and Torosa fields as a condition of the retention lease renewal set by the Australian government in 2009. 29. representing approximately 4 percent of the companywide total. Manila Mak-Ban SOUTH CHINA SEA Batangas Tiwi San Martin Malampaya PHILIPPINES Chevron Interest Geothermal Field Natural Gas Field Terminal In November 2010. Chevron has signed five binding LNG Sales and Purchase Agreements (SPAs) with various Asian customers for delivery of about 4. Chevronoperated total daily production in 2010 averaged 7. the Browse LNG development participants commenced design concept evaluation for the Brecknock.7 million metric tons per year. commencement of module fabrication. North West Shelf (NWS) Venture Chevron has a 16.000 net). Lambert and Wanaea crude oil fields. and was composed of 159.7 percent to 20 percent in the blocks that contain these three fields. the company announced natural gas discoveries at the 50 percent-owned and operated Yellowglen. Goodwyn. At the end of 2010.000 barrels. Proved reserves have been recognized for this project. Sappho and Orthrus prospects in Blocks WA-268-P. Australia Chevron is the largest holder of natural gas resources in Australia. Development Construction and other activities for the Gorgon Project on Barrow Island progressed during 2010 with the awarding of approximately $25 billion of contracts for materials and services. The NWS Venture concession expires in 2034.
9 million-metric-tonper-year LNG facility and a separate domestic gas plant. North Rankin A and North Rankin B platforms will be operated as a single integrated facility. the company announced natural gas discoveries at the Clio and Acme prospects in Block WA-205-P.9 billion and is expected to extend production past 2020. 785 million cubic feet of natural gas per day (131 million net) was sold to the Western Australia domestic market. Lambert and Wanaea fields. The project is designed to replace the existing FPSO and a portion of existing subsea infrastructure that services production from the Cossack. Development Progress continues on several NWS Venture projects.000 barrels of condensate. Work also continued on the NWS Oil Redevelopment Project.000 barrels of LPG (5. and the Native Title agreement for land required to develop the project was executed in December. both located at Ashburton North. and in March 2010. Under these HOAs.0 billion cubic feet of natural gas and 39.7 billion. proved reserves had not been recognized for this project. Hermes.4 billion cubic feet of natural gas and 25. The project is estimated to cost $1. Negotiations continue to convert the three nonbinding HOAs to binding SPAs. with fabrication of North Rankin B jacket and topsides and modifications to North Rankin A for process tie-ins and a barge link. The project entered FEED in 2009. NR2 is designed to recover remaining low-pressure natural gas from the North Rankin and Perseus fields to meet supply needs for contractual commitments. proved reserves had not been recognized for these discoveries. The maximum total daily production is expected to be 1. and completion of construction and commissioning works on the new FPSO is expected in second quarter 2011.Australia Upstream BROWSE BASIN Iago INDIAN OCEAN Torosa Brecknock Calliance Kentish Knock Brederode Montague Hermes Eurytion Egret Lambert Goodwyn Perseus Geryon Urania Echo Yodel Wheatstone Yellowglen Angel Cossack Wanaea Iago Persephone Dixon Dionysus North Rankin Maenad Chrysaor Lady Nora Goodwyn South Orthrus Rankin Dockrell Wilcox Achilles West NORTH WEST Acme Tryal Satyr SHELF Clio Rocks North West Shelf Sappho Gorgon LNG Facilities Barrow Gorgon GREATER Island LNG GORGON Facilities lo/Jansz Chandon Thevenard Island Wheatstone Project Western Australia The NWS Venture continues to progress additional natural gas supply opportunities through development of several fields on the western flank of the Goodwyn reservoirs.000 net). contingent on reaching a final investment decision. At the end of 2010. Chevron held an 80 percent interest in the foundation natural-gas-processing facilities. Chevron Corporation 2010 Supplement to the Annual Report 33 . The project is expected to enter FEED in second quarter 2011. In January 2011. At the end of 2010. and start-up is expected in 2013. Agreements were also signed in 2009 and 2010 with two companies to participate in the Wheatstone Project as combined 20 percent LNG facility owners and suppliers of natural gas for the project’s first two LNG trains.7 billion cubic feet of natural gas (456 million net).8 percent nonoperated working interest in the Wheatstone field licenses and a 17. At the end of 2010. key approvals were finalized on numerous agreements relating to the facilities and land sites. along the West Pilbara coast.5 percent interest in the foundation natural-gas-processing facilities. the customers also agreed to acquire a combined 21. South Korea and China. a Native Title HOA was reached with the local indigenous people. Chevron had signed nonbinding HOAs with three Asian customers for the delivery of about 80 percent of Chevron’s net LNG offtake per year from the Wheatstone Project. Exploration During 2010. Chevron Interest Natural Gas Field Crude Oil Field Terminal Production Total daily production during 2010 averaged 152. primarily under long-term contracts. In early 2011. The North Rankin 2 Project (NR2) progressed. and 2. These fields contain potentially recoverable volumes of approximately 3 trillion cubic feet of natural gas and 100 million barrels of condensate. comprising the majority of the Wheatstone Field and the nearby Iago Field. The company plans to supply natural gas to the facilities from two Chevron-operated licenses. Also in 2010. Total estimated project cost is $4. The final investment decision for the project is expected in the second-half 2011. Production from wells tied in to the new FPSO is anticipated to commence in third quarter 2011. Additionally. 8. These 67 percent-owned and operated discoveries are expected to support expansion opportunities at the Wheatstone LNG facilities. 29. Through the end of 2010.000 barrels of crude oil and condensate (25. submissions for environmental approvals were lodged with the Western Australian Environmental Protection Authority for public comment and consideration. A total of 263 LNG cargoes were sold in 2010.000 net). The maximum total daily production is expected to be 2. Wheatstone Development The Chevron-operated Wheatstone Project includes naturalgas-processing facilities that consist of a two-train. Approximately 70 percent of the natural gas was sold in the form of LNG to major utilities in Japan. the subsea infrastructure refurbishment commenced. Upon completion.000 barrels of condensate.
34 Chevron Corporation 2010 Supplement to the Annual Report . proved reserves had not been recognized for this discovery.000 barrels during 2010 in these countries represented about 6 percent of the companywide total. four development wells were drilled and completed in the Halfdan. The Halfdan Phase IV development is progressing. is under construction. Tyra and Valdemar fields.000 barrels of crude oil (2.6 percent nonoperated working interest in the Draugen Field. First production is expected in 2012. Poland. Installation of the new Halfdan facilities were completed in 2010. Krasnik and Frampol) held by the company. The 40 397 PL percent-owned and operated PL 527 license covers 891. The company also has interests ranging from 46. which complements the three other shale gas concessions (Zwierzyniec. Further appraisal of the Valdemar Field southern extension is planned for second quarter 2011 to assess the viability of broader development. comprise the A/B Gas Project. and in September 2010. Norway. The acquisition of 2-D seismic data across the four licenses commenced in October 2010. with a unitized interest of 34. an unmanned platform planned to be installed in second quarter 2011 and four wells planned to be drilled in third quarter 2011. with hook-up and tie-in planned for second quarter 2011.1 million acres (4. Net daily oil-equivalent production of 159. the first well since acquisition of the P/2 Block is expected to commence drilling. Chevron relinquished its 40 percent nonoperated working interest in the PL 397 license in the Barents Sea. the Netherlands. In late 2011. Five blocks. ICELAND NORWEGIAN SEA PL 527 Draugen FAROE ISLANDS Strathspey Rosebank Clair Captain Shetland Islands NORWAY SWEDEN FINLAND Alder Callanish Britannia Alba Brodgar Erskine Elgin/Franklin Jade A/B BALTIC SEA DUC DENMARK Valdemar Tyra Halfdan ESTONIA LATVIA LITHUANIA RUSSIA POLAND BELARUS UNITED KINGDOM IRELAND NORTH SEA Grabowiec Krasnik Frampol Zwierzyniec SLOVAKIA HUNGARY NETHERLANDS GERMANY CZECH REPUBLIC AUSTRIA FRANCE ITALY UKRAINE Barlad Block SLOVENIA ROMANIA Block 17 Block 18 SERBIA Block 19 Chevron Interest Crude Oil Field Natural Gas Field Poland Exploration In February 2010. and production is utilizing existing facilities.000 barrels of crude oil (32. Europe In Europe. the company is engaged in exploration and production activities in Denmark. Exploration The P/1 and P/2 Blocks contain several natural gas discoveries. Romania and the United Kingdom. Chevron acquired a 60 percent interest in the P/1 and P/2 exploration blocks. Production Average total daily production in 2010 from the DUC was 213. of which 13 are producing. Netherlands Chevron operates and holds interests in 10 blocks in the Dutch sector of the North Sea.7 percent to 80 percent in three blocks that contain producing fields.609 sq km) within the deepwater portion of the Norwegian Sea. average total daily production was 3. Exploration In 2010.000 net) and 775 million cubic feet of natural gas (116 million net). Exploration There were no significant exploration activities in 2010. Development The second stage of the A/B Gas Project. Chevron processed data from a 2-D seismic survey acquired over the PL 527 exploration license and began evaluating options for a subsequent 3-D seismic survey. At the end of 2010.1 percent.000 barrels of crude oil (3. Chevron acquired an exploration license for the Grabowiec shale gas concession in southeast Poland. Norway Production Chevron holds a 7. Total daily average production in 2010 was 44.000 net). the B13 satellite development. Denmark Chevron holds a 15 percent nonoperated working interest in the Danish Underground Consortium (DUC). All the licenses are 100 percent-owned and operated and comprise a total of 1.433 sq km). In February 2011. This stage is composed of a pipeline laid in December 2010.000 net) and 97 million cubic feet of natural gas (35 million net). the company announced a natural gas discovery at the 50 percent-owned and operated Brederode prospect in Block WA-364-P. Development During 2010.423 acres (3. The DUC has interests in 15 Danish North Sea fields. Production In 2010. The data will be used to plan a multiwell drilling program expected to start in late 2011.Upstream Europe Other Australia During 2010.
50 percent.115 m) of water. The company operates and holds a 40 percent interest in the project. Feasibility engineering activities are scheduled to continue through 2011. A final investment decision is planned for 2013. twin-jacket structure that includes drilling. with total average daily production of 11.000 net) and 1. the decision was made to move to FEED following selection of the development concept.05 billion cubic feet of natural gas (194 million net).000 net) in 2010.000 net) and 276 million cubic feet of natural gas (89 million net). 16.000 barrels of crude oil (7. proved reserves had not been recognized for this discovery.9 percent. 18 and 19 in southeast Romania comprise approximately 670.000 net) and 4 million cubic feet of natural gas (3. with total average daily production of 28. Most of the production was from the Captain Field. 19. Clair.9 percent). Blocks 17.5 percent. followed by appraisal drilling and well testing of the Cambo discovery in the 32. Clair Ridge The Clair Ridge project comprises the second phase of the Clair field development.5 percent nonoperated license blocks P1028 and P1189. Elgin/Franklin. proved reserves had not been recognized for Clair Ridge. Callanish. 23. from both platform and subsea locations. including four operated fields (Alba. In February 2010. Erskine.Europe Upstream Romania Exploration In July 2010. one jointly operated field (Britannia.2 million net). Alba A 4-D seismic survey over Alba was used to plan and execute three additional development wells during 2010. added total daily production of 15. is located in northeast Romania. is being evaluated as a potential subsea development.4 percent. Captain At Captain.000 barrels of crude oil (4. Production Total daily production in 2010 from the 10 fields averaged 243. In June 2010. with total average daily production of 37.257 sq km). and interpretation of the data to the southwest over previously awarded 25th Round acreage is ongoing. This program comprises exploration wells on the Lagavulin prospect in the 60 percent-owned and operated license block P1196 and the Aberlour prospect in the 40 percent-owned and operated license block P1194. a three-well exploration and appraisal drilling program began in September 2010 and is expected to be completed in fourth quarter 2011. six new development wells. In February 2011. A final investment decision is expected in late 2011. This pilot is planned to continue through 2011. The preferred alternative has been selected and consists of a bridge-linked. geophysical.4 percent. high-pressure crude oil and natural gas discovery. United Kingdom Chevron has interests in 10 offshore producing fields in the United Kingdom. 25 percent. proved reserves had not been recognized for any of these prospects. and Jade. Chevron will be the operator of the 2011 Cambo drilling activities. Enhanced oil recovery was tested through a field pilot study utilizing polymer injection with the objective of increasing rates of recovery. At the end of 2010.700 sq km).4 percent) and five nonoperated fields (Brodgar. Chevron submitted the winning bid for three blocks in the 10th Romanian Exploration Licensing Round. At the end of 2010. 67 percent). proved reserves had not been recognized for this discovery. 3. Captain. geotechnical and environmental surveys were conducted. A 2-D seismic program is planned to begin in fourth quarter 2011 on the EV-2 Barlad concession. the company sold its 10 percent interest in the nonoperated Laggan/Tormore discovery. the Britannia Field.000 barrels of crude oil (13. Continued development drilling is expected to maintain production rates through 2013. seismic.000 acres (2.000 net). This license. Chevron Corporation 2010 Supplement to the Annual Report 35 . During 2010. The 3-D seismic acquisition and processing was completed over the Clair Field Unit area. and Strathspey. 85 percent. A final investment decision is expected in 2012. During 2010.658 feet (1. 19. Exploration West of the Shetland Islands. Rosebank The Rosebank Field is 81 miles (130 km) northwest of the Shetland Islands in 3.5 million acres (6. and the Alba Field. 32. which covers 1. located approximately 17 miles (27 km) to the west of the Britannia Field. Chevron relinquished its equity in the Torridon natural gas discovery. Active drilling programs from both platform and subsea templates are expected to continue beyond 2013. Development Alder The 70 percent-owned and operated Alder high-temperature. At the end of 2010.000 barrels of crude oil and NGLs (64.000 barrels of crude oil (32. At the end of 2010. Negotiation of the license agreements for these blocks continued into 2011. processing and living facilities. Chevron also acquired a 100 percent interest in the EV-2 Barlad concession.
For more information on this project. refer to pages 32 and 33. refer to page 24. and storage and pipeline operators.7 percent nonoperated working interest in the NWS Venture in Western Australia. For information on significant project milestones. Plant construction continued on schedule throughout 2010. NWS Venture Chevron has a 16. refer to page 32. Progress continues on several NWS Venture projects. For more information on these projects. marketing and trading. The Henry Hub interconnects to nine interstate and four intrastate pipelines and is the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange. transportation. The company continues to build and develop long-term relationships with producers. Natural Gas Marketing and Trading Chevron ranks among the top natural gas marketers in North America. Olokola LNG Chevron has a 19. with natural gas sales in 2010 averaging approximately 7 billion cubic feet per day. Gorgon The Gorgon Project comprises the development of natural gas production from fields in the Greater Gorgon Area off the northwest coast of Australia and construction of LNG facilities on Barrow Island. and power generation were leveraged to create value across all major segments of the enterprise. connecting the Sabine Pass LNG terminal to the natural gas pipeline grid. Significant progress was made in 2010 in reaching key milestones for the Gorgon and Wheatstone projects. EGTL Chevron and the NNPC are developing a 33. 36 Chevron Corporation 2010 Supplement to the Annual Report .5 percent interest in the OKLNG affiliate in Nigeria. For more information on this project. In Africa.Upstream Gas Gas Chevron’s gas strategy is to commercialize the company’s equity natural gas resource base while growing a high-impact global gas business. end-use natural gas customers.000-barrel-per-day gas-to-liquids facility at Escravos that is designed to process 325 million cubic feet per day of natural gas from the EGP Phase 3A. refer to page 33. construction continued at the Angola LNG and EGTL projects. refer to page 24. including access to Chevron’s Sabine Pipeline. Chevron has contracted capacity in a third-party pipeline system. The joint venture operates offshore producing fields and extensive onshore facilities that include five LNG trains and a domestic gas plant. refer to page 22. The pipeline provides access to two major salt dome storage fields and 10 major interstate pipeline systems. 2010 Activities Angola LNG Angola LNG is an integrated natural gas utilization project encompassing offshore and onshore operations to commercialize natural gas resources through LNG sales. Wheatstone The Wheatstone Project comprises development of the Wheatstone and Iago offshore natural gas fields and an onshore LNG and domestic natural gas plant. Plans have been developed to build a multitrain natural-gas-liquefaction facility and marine terminal located northwest of Escravos. For more information on the development of this project. For more information on the Gorgon Project. Centers of excellence in gas commercialization. which connects to the Henry Hub.
1 47.5 percent).7 60.0 39.580 6 42 – 1.Upstream Operating Data Major Capital Projects1 Year of Start-Up/Project Location Ownership Percentage Operator Maximum Total Production 2 Liquids (MBPD)3 4 43 6.071 2.0 Chevron Partner Chevron Chevron Affiliate Chevron Partner Chevron Partner Partner Chevron Chevron Chevron Chevron Chevron Chevron Chevron Chevron 2011 Agbami 2 Platong Gas II 100 8 18 63 – 180 33 10 140 8 39 75 4 43 31 20 6 170 120 25 – 330 670 558 – – – 8 1. Malo (51. Targeted maximum total production is total for each field or project except as footnoted.0 11 55. 10 Represents total plant outtake of liquids. If the project is a new facility. an expansion of existing facilities or a phased project.5 percent) and the Perdido Regional Host Shared Producing facility (37.7 130 Natural Gas (MMCFPD)3 4 395 – 2010 EGP Phase 3A Perdido Regional Development5 Nigeria United States Nigeria Thailand Angola China Nigeria Nigeria Brazil Australia United States Vietnam Nigeria Indonesia Australia United States Angola Australia 40.5 16.0 75.0 33.0 9 42.9 40.3 69. each with an expected maximum net daily production of 25.4 49.3-60.0 67.000 barrels of oil-equivalent or more. 7 Expressed in thousands of oil-equivalent barrels per day.7 percent). 12 Jack/St. Malo development includes interests in Jack (50.0 percent). the indicated production is for the incremental volumes directly attributable to the project or phase. 5 Perdido Regional Development includes interests in Great White (33.410 2012 Angola LNG Plant Chuandongbei Usan 2013 EGTL Papa-Terra North Rankin 2 2014-2016 Big Foot Block B Gas Development Gas Supply Expansion Project Gendalo-Gehem Gorgon LNG Trains 1–3 Jack/St. 11 Represents the company’s ownership percentage following government approval of farm-out agreements. and the St. 6 Represents total facility processing capacity. MMCFPD = millions of cubic feet per day.0 percent). 2 Chevron Corporation 2010 Supplement to the Annual Report 37 . 9 Represents a weighted average of Chevron’s interest across multiple blocks. 8 Volumes are not incremental. Malo Host Shared Producing facility (50. St. Tobago (57.980 25 490 215 1.3 percent).2 13 80. 4 Represents incremental volumes to total plant processing capacity. 3 MBPD = thousands of barrels per day.0 percent). Silvertip (60. These and other projects in the portfolio are discussed in detail beginning on page 14. 13 Represents the company’s ownership in the LNG facilities.99 36. Malo12 Mafumeira Sul Wheatstone LNG Trains 1–2 1 The projects in the table above are considered the most noteworthy in the company’s development portfolio.0 37. Project designed to maintain capacity.0-51.0 30.3 50.
225 1.294 1.334 3.166 4.246 1.192 2.624 165 1.2 Billions of cubic feet Gross Natural Gas Consolidated Companies United States Other Americas Africa Asia Australia Europe Total Consolidated Companies Equity Share in Affiliates TCO Other Total Equity Share in Affiliates Total Worldwide Net Natural Gas Consolidated Companies United States Other Americas Africa Asia Australia Europe Total Consolidated Companies Equity Share in Affiliates TCO Other Total Equity Share in Affiliates Total Worldwide 1 2 2.891 98 170 5.698 2.0 8.0 Gross Liquids Consolidated Companies United States Other Americas Africa Asia Australia Europe Total Consolidated Companies Equity Share in Affiliates TCO Other Total Equity Share in Affiliates 1.386 1.884 2006 through 2009 conformed to 2010 geographic presentation.435 284 3.359 589 2.105 721 23.259 102 303 5.348 947 4.084 3.423 1.176 439 2.063 3.022 3.0 0.899 204 2.665 1.677 2.944 7.049 7.245 345 26.704 3.610 1.506 1.728 88 152 5.124 4.075 3.Upstream Operating Data Net Proved Reserves Billions of BOE* 12.466 3.470 4.206 10.472 1.349 30. These proved-reserve estimates are reviewed annually by the company’s Reserves Advisory Committee to ensure that rigorous professional standards and the reserves definitions prescribed by the Securities and Exchange Commission are consistently applied throughout the company.358 2.948 8.049 10.056 2.755 2.719 27.512 7.378 3.350 1.860 6.132 2.422 7.233 6.803 2.413 4.153 2.449 701 3.410 2.589 3.678 2.420 626 3.0 2.944 10.053 23.391 849 24. Net reserves exclude royalties and interests owned by others and reflect contractual arrangements and royalty obligations in effect at the time of the estimate.815 2.289 3.815 3.150 9.074 2.110 3.743 231 2.630 2.251 2.989 433 2.751 181 1.206 7.813 2.171 98 170 4.056 11. composed of earth scientists and reservoir engineers.882 3.698 1.454 626 3.021 7.896 26.961 490 23.806 Proved Reserves – Natural Gas1.368 3.500 1.102 1.440 326 3.207 2.270 1.698 1.849 2.749 2.137 2.858 1.833 1.697 1.973 1.592 168 1.140 4. Refer to the Glossary for a definition of proved reserves.632 2.049 3.247 29.272 1.175 878 4. Condensate.191 6.361 564 1.150 2.285 102 303 6. 1.761 187 1.145 73 202 5.0 06 07 08 09 10 Total Worldwide Net Liquids Consolidated Companies United States Other Americas Africa Asia Australia Europe Total Consolidated Companies Equity Share in Affiliates TCO Other Total Equity Share in Affiliates Total Worldwide Affiliates Europe Australia Asia Africa Other Americas United States *BOE (barrels of oil-equivalent) 2010 and 2009 include reserves for Canadian synthetic oil. Proved reserves are estimated by the company’s asset teams.5 10.2 Millions of barrels At December 31 2010 2009 2008 2007 2006 10. 38 Chevron Corporation 2010 Supplement to the Annual Report .456 73 202 4.105 721 19.046 8.0 Proved Reserves – Crude Oil. Natural Gas Liquids and Synthetic Oil (Liquids)1.087 1.946 417 2.594 6.503 1.496 24.735 2.275 574 1.961 490 19.022 11.470 149 1.835 8.103 2.245 1.056 275 20.056 7.376 643 1.879 3.193 6.812 2.828 3.820 413 2.766 27.0 6.023 84 269 4.910 2.363 6.748 255 3.056 277 25.974 22.042 3.249 2.950 562 2.081 1.168 1.013 88 152 4.463 621 1.985 3.615 7.003 22.255 580 2.391 848 19.118 3.997 1.080 9.852 2.028 2.999 4.245 344 22.039 84 269 6.385 1.295 27.
704 9 10 24 10 215 25 3 127 38 11 149 11 28 11 671 44 – 37 35 32 – 148 154 29 2 154 13 352 29 71 22 235 66 15 106 26 217 787 96 61 9 6 106 182 2.345 167 38 7 1 213 2.503 27 – 27 2.344 176 41 28 3 248 2.530 10 10 27 10 221 27 4 174 38 12 153 16 29 12 743 47 – 36 30 29 – 142 179 32 3 129 8 351 61 47 26 241 66 17 112 26 224 820 100 63 4 6 115 188 2.763 2500 2000 1500 1000 500 0 06 07 08 09 10 Europe Denmark Netherlands Norway United Kingdom Affiliates Europe Australia Asia Africa Other Americas United States – Offshore United States – Onshore *Includes other produced volumes in 2006 to 2009.397 308 30 26 2 366 2. Net oil-equivalent production excludes royalty interests and a government’s agreed-upon share of production under a production-sharing contract (PSC).8% 4.350 274 28 24 2 328 2.5% 3.236 201 35 28 3 267 2.Upstream Operating Data Net Oil–Equivalent Production1.2 Thousands of barrels per day Year ended December 31 2010 2009 2008 2007 2006 Net Oil-Equivalent Production by Country* Percentage Consolidated Companies United States Alabama – Onshore – Offshore Alaska – Onshore – Offshore California Colorado Louisiana – Onshore – Offshore New Mexico Oklahoma Texas – Onshore – Offshore Wyoming Other states Total United States Other Americas Argentina Brazil Canada Colombia Trinidad and Tobago Venezuela3 Total Other Americas Africa Angola Chad Democratic Republic of the Congo Nigeria Republic of the Congo Total Africa Asia Azerbaijan Bangladesh China Indonesia Kazakhstan Myanmar Partitioned Zone Philippines Thailand Total Asia Total Australia 8 8 22 9 199 27 2 233 36 9 117 10 25 3 708 32 24 54 41 38 – 189 161 28 2 253 25 469 30 69 20 226 64 13 98 25 216 761 111 51 8 3 97 159 2.2% 7.592 27 – 27 2.667 United States Kazakhstan Nigeria Indonesia Thailand Angola Australia United Kingdom Partitioned Zone Others 25.8% *Includes equity share in affiliates.5% 18.763 – – – 2. Includes volumes through September 2006. Net Oil-Equivalent Production* Thousands of barrels per day 3000 2.678 26 – 26 2.6% 13. Total Europe Total Consolidated Companies Equity Share in Affiliates TCO Petropiar (Hamaca prior to 2008) Petroboscan 4 Petroindependiente4 Total Equity Share in Affiliates Total Consolidated Companies and Affiliates Other Produced Volumes Athabasca Oil Sands in Canada Boscan operating service agreement in Venezuela 5 Total Other Produced Volumes Total Worldwide 1 2 3 4 5 2006 through 2009 conformed to 2010 geographic presentation.0% 3.558 27 82 109 2. Chevron Corporation 2010 Supplement to the Annual Report 39 .5% 9.763 10 9 23 7 211 26 2 214 37 10 132 9 23 4 717 38 2 28 41 34 – 143 150 27 3 232 21 433 30 66 19 243 69 13 105 27 198 770 108 55 9 5 110 179 2.8% 5. Includes production from LL-652 through September 2006.619 11 11 30 10 224 27 5 175 40 13 150 22 33 12 763 47 – 47 29 29 7 159 164 35 3 144 12 358 47 21 26 248 62 15 114 24 216 773 99 68 4 6 115 193 2.2% 8. Joint stock company formed in October 2006.
569 226 26 24 1 277 1.3 Thousands of barrels per day Year ended December 31 2010 2009 2008 2007 2006 United States Kazakhstan Nigeria Indonesia Angola Partitioned Zone Thailand United Kingdom Others 25.3% 17.4% 15. Includes volumes through September 2006.732 27 82 109 1.676 14 5 205 10 2 106 21 77 5 7 8 460 39 – 35 – – 74 171 31 3 126 7 338 60 2 22 195 41 109 5 71 505 39 41 3 6 78 128 1.5% Consolidated Companies United States Alaska – Onshore – Offshore California Colorado Louisiana – Onshore – Offshore New Mexico Texas – Onshore – Offshore Wyoming Other states Total United States Other Americas Argentina Brazil Canada Trinidad and Tobago Venezuela 4 Total Other Americas Africa Angola Chad Democratic Republic of the Congo Nigeria Republic of the Congo Total Africa Asia Azerbaijan Bangladesh China Indonesia Kazakhstan Partitioned Zone Philippines Thailand 11 3 183 10 1 178 19 66 4 7 7 489 31 23 53 1 – 108 152 27 2 239 23 443 28 2 18 187 39 94 4 70 442 34 32 2 3 64 101 1. Joint stock company formed in October 2006.923 12 2 196 9 1 154 21 71 3 7 8 484 33 2 27 1 – 63 141 26 3 225 19 414 28 2 17 199 42 101 4 65 458 35 35 2 5 73 115 1.544 144 39 28 1 212 1.419 168 34 27 1 230 1.9% 4.841 *Includes equity share in affiliates.Upstream Operating Data Net Liquids Production by Country* Percentage Net Liquids Production1.846 26 – 26 1.1% 12.617 252 28 25 1 306 1. Net production of natural gas liquids: United States International Total 51 21 72 50 20 70 47 19 66 51 18 69 48 19 67 4 5 6 Includes production from LL-652 through September 2006.2.649 27 – 27 1.554 135 36 7 – 178 1.872 12 5 201 10 1 77 21 76 4 7 7 421 37 – 36 – – 73 145 28 2 142 11 328 28 2 19 182 41 103 5 67 447 34 37 2 6 71 116 1.6% 3.923 1800 1350 900 450 0 06 07 08 09 10 Total Asia Total Australia Europe Denmark Netherlands Norway United Kingdom Total Europe Total Consolidated Companies Equity Share in Affiliates TCO Petropiar (Hamaca prior to 2008) Petroboscan 5 Petroindependiente 5 Total Equity Share in Affiliates Total Consolidated Companies and Affiliates Other Produced Volumes Athabasca Oil Sands in Canada Boscan operating service agreement in Venezuela 6 Total Other Produced Volumes Total Worldwide 1 2 Affiliates Europe Australia Asia Africa Other Americas United States — Offshore United States — Onshore * Includes other produced volumes in 2006 to 2009. Net Liquids Production* Thousands of barrels per day 2250 1.923 – – – 1.4% 9. Net liquids production excludes royalty interests and a government’s agreed-upon share of production under a PSC.756 27 – 27 1.7% 7. 40 Chevron Corporation 2010 Supplement to the Annual Report . 3 2006 through 2009 conformed to 2010 geographic presentation.9% 3.783 15 5 207 10 2 101 20 79 6 8 9 462 38 – 46 – 3 87 156 34 3 139 11 343 46 – 23 198 38 111 6 73 495 39 44 3 6 75 128 1.
8% 11.040 4400 3300 2200 4 126 18 302 143 89 19 108 856 1.125 31 62 80 30 97 98 16 405 101 52 457 64 48 135 23 1.665 360 146 7 1 242 396 4.Upstream Operating Data Net Natural Gas Production1.4% 3.4% 9.9% *Includes equity share in affiliates.677 338 10 6 9 363 5.799 193 10 6 11 220 5.956 1100 0 06 07 08 09 10 Affiliates Europe Australia Asia Africa OtherAmericas United States — Offshore United States — Onshore 2006 through 2009 conformed to 2010 geographic presentation.2 Millions of cubic feet per day Year ended December 31 2010 2009 2008 2007 2006 Net Natural Gas Production by Country* Percentage Consolidated Companies United States Alabama – Onshore – Offshore Alaska – Onshore – Offshore California Colorado Louisiana – Onshore – Offshore New Mexico Oklahoma Texas – Onshore – Offshore Utah Wyoming Other states Total United States Other Americas Argentina Brazil Canada Colombia Trinidad and Tobago Venezuela3 Total Other Americas Africa Angola Chad Democratic Republic of the Congo Nigeria Republic of the Congo Total Africa Asia Azerbaijan Bangladesh China Indonesia Kazakhstan Myanmar Partitioned Zone Philippines Thailand Total Asia Total Australia Europe Denmark Netherlands Norway United Kingdom Total Europe Total Consolidated Companies Equity Share in Affiliates TCO Petropiar (Hamaca prior to 2008) Petroboscan 4 Petroindependiente4 Total Equity Share in Affiliates Total Worldwide 1 2 24 48 68 32 96 104 5 332 97 39 302 38 1 110 18 1.399 27 – 4 245 199 – 475 49 5 1 48 13 116 10 387 16 268 161 76 21 137 794 1.7% 9.677 289 8 6 9 312 4. Net natural gas production excludes royalty interests and a government’s agreed-upon share of production under a PSC.870 434 119 41 1 222 383 4. Net Natural Gas Production Millions of cubic feet per day 5500 5.916 458 116 35 1 194 346 4.7% 4.989 30 56 73 30 88 90 10 300 103 45 441 46 40 129 20 1.810 54 – 6 174 174 21 429 47 4 2 29 8 90 United States Thailand Kazakhstan Australia Bangladesh Colombia Indonesia Trinidad and Tobago United Kingdom Others 26.1% 8.0% 4.9% 4.887 372 132 5 1 220 358 4.903 195 9 7 11 222 5.046 376 142 40 1 208 391 4. includes natural gas consumed in operations: United States International Total 62 475 537 58 463 521 70 450 520 65 433 498 56 419 475 3 4 Includes production from LL-652 through September 2006.750 193 9 1 3 206 4.699 50 – 5 178 174 – 407 48 4 2 15 7 76 5 275 22 277 149 100 17 126 916 1.040 29 54 69 27 90 102 8 358 99 42 364 39 1 99 18 1.501 45 – 4 209 189 – 447 52 5 1 72 12 142 7 414 22 319 153 89 20 128 894 2. Chevron Corporation 2010 Supplement to the Annual Report 41 .019 36 67 85 30 101 100 22 443 122 55 425 95 50 153 26 1.1% 17.314 5 7 4 249 223 – 488 52 6 1 86 10 155 11 404 13 236 149 81 23 124 875 1. Joint stock company formed in October 2006.
115 535 88 2.605 435 382 5.233 111 158 3.249 Gross Natural Gas Production1 Millions of cubic feet per day Consolidated Companies United States Other Americas Africa Asia Australia Europe Total Consolidated Companies Equity Share in Affiliates TCO Petropiar (Hamaca prior to 2008) Petroboscan 2 Petroindependiente 2 Total Equity Share in Affiliates Total Worldwide 1 2 1.098 374 43 38 3 458 3.002 321 39 36 4 400 3.918 202 46 41 3 292 2.Upstream Operating Data Gross Oil–Equivalent Production1 Thousands of barrels per day Year ended December 31 2010 2009 2008 2007 2006 Consolidated Companies United States Other Americas Africa Asia Australia Europe Total Consolidated Companies Equity Share in Affiliates TCO Petropiar (Hamaca prior to 2008) Petroboscan 2 Petroindependiente 2 Total Equity Share in Affiliates Total Worldwide 778 230 588 1.036 159 43 11 – 213 2.211 99 192 2.265 96 183 2.439 373 358 5. Joint stock company formed in October 2006.723 458 346 5.709 376 391 5.611 614 116 2.041 265 38 35 1 339 2.130 1. 42 Chevron Corporation 2010 Supplement to the Annual Report .883 2006 through 2009 conformed to 2010 geographic presentation.644 222 11 1 5 239 5.402 749 172 451 1.265 1.507 605 155 2.983 518 145 2.230 Gross Liquids Production1 Thousands of barrels per day Consolidated Companies United States Other Americas Africa Asia Australia Europe Total Consolidated Companies Equity Share in Affiliates TCO Petropiar (Hamaca prior to 2008) Petroboscan 2 Petroindependiente 2 Total Equity Share in Affiliates Total Worldwide 527 129 562 779 34 101 2.210 507 82 408 838 39 129 2.763 337 11 6 13 367 6.516 523 77 500 792 35 114 2.246 101 188 2.239 1.255 838 168 432 1.152 359 395 5.794 411 15 6 13 445 6.984 246 14 5 16 281 6.916 243 49 42 5 339 3.556 792 179 519 1.082 2.380 459 80 415 813 33 118 1.977 196 45 11 1 253 3.973 203 49 42 5 299 3.816 230 13 6 17 266 6.003 165 47 41 2 255 2.740 555 213 2.272 863 185 427 1.132 305 40 38 1 384 2.258 510 96 413 852 39 126 2.226 108 178 3.
Upstream Operating Data Natural Gas Realizations1.623 136 411 286 1.S.215 11.441 7.901 4.73 7 Liquids Realizations2.334 347 3.478 10.924 $ 1.73 $ 4. Consolidated companies only.68 55.698 419 565 143 285 257 1. Exploration and Development Costs1.529 3 06 07 08 09 10 Total Natural Gas Liquids Sales2 Thousands of barrels per day International* United States United States International 22 27 49 17 23 40 15 17 32 25 22 47 52 21 73 *Includes equity share in afﬁliates.59 $ 54.922 15.19 6.493 10.26 $ 4.426 154 2.325 396 2.29 3.90 $ 5.407 9. Total 1 2 3 Liquids Realizations Dollars per barrel 90 U.65 5 Natural Gas Sales2 Millions of cubic feet per day 4 United States International 5.64 3.187 13.416 7.343 2006 through 2009 conformed to 2010 geographic presentation.S.12 $ 3.36 $ 88.515 346 3.446 3.2 Millions of dollars 80 Year ended December 31 2010 2009 2008 2007 2006 70 United States Exploration Development Other Americas Exploration Development Africa Exploration Development Asia Exploration Development Australia Exploration Development Europe Exploration Development Total Consolidated Companies Exploration Development 1 2 $ 287 $ 576 $ 728 $ 658 $ 751 4.176 187 2.66 72. Chevron Corporation 2010 Supplement to the Annual Report 43 .348 5.051 3.890 257 1. International realizations and sales include equity share in affiliates.963 7.723 197 4.3 Dollars per barrel 6 United States International $ 71.43 $ 63.338 4.01 7.611 236 2. $ 1. Excludes costs of property acquisitions.51 65. natural gas realizations are based on revenues from net production.186 203 1.932 4.190 201 327 181 746 253 469 379 2.2 Dollars per thousand cubic feet Year ended December 31 Natural Gas Realizations Dollars per thousand cubic feet 8 2010 2009 2008 2007 2006 United States International $ 4.97 86.697 322 540 78 545 191 758 408 4.826 $ 1.425 5.210 3.401 11.90 6.624 3. International realizations are based on liquids revenues from liftings.226 4.16 $ 56. International natural gas realizations are based on revenues from liftings. U.929 $ 1.792 11.062 9.827 15.877 147 371 135 550 60 50 06 07 08 09 10 International* United States *Includes equity share in afﬁliates.01 57.985 320 3. realizations are based on liquids revenues from net production and include intercompany sales at transfer prices that are at estimated market prices.578 $ 1.
479 23.264 7.924 1.695 16 1.796 2.871 50 8.028 84 275 16.372 – 6.857 141 74 15.477 275 74 14.Upstream Operating Data Oil and Gas Acreage1.159 828 2.796 3.983 7.061 8.548 461 289 224 275 335 3.667 152 225 24.079 206 6.949 41 2.661 – 2.531 125 1.646 3.616 850 294 234 274 354 3.234 16 1.900 16.072 71.281 2.236 2.631 11 1.201 23.085 1.525 87 1.742 8.449 168 292 29.445 63.541 11 1.796 2.036 1.695 16 1.353 418 115 533 71.258 640 1.402 74 15.871 49 8.494 9 1.791 304 100 404 64.029 84 1.684 817 6.871 49 6.220 1.239 18.975 5.872 8.865 2.828 640 1.081 – 6.841 7.832 788 93 8.393 114 250 2.974 1.826 788 93 9.239 19.411 69.239 8.732 2.143 304 101 405 69.833 – 10.597 464 277 234 386 355 3.985 7 2.268 1.348 823 39 44 – 2.740 79 68 26 22 549 – 1.115 853 812 206 6.164 5.766 – 6.832 788 93 9.006 84 275 16.043 44 – 2.405 753 6. 44 Chevron Corporation 2010 Supplement to the Annual Report .781 684 28.244 87 1.460 1.2 Gross Acres Thousands of acres Net Acres At December 31 2010 2010 2009 2008 2007 2006 United States Onshore Alaska California Colorado Louisiana New Mexico Texas Other states Total Onshore Offshore Alaska and Pacific Coast Gulf Coast Total Offshore Total United States Other Americas Argentina Brazil Canada Colombia Greenland Trinidad and Tobago Venezuela Total Other Americas Africa Angola Chad Democratic Republic of the Congo Liberia Libya Nigeria Republic of the Congo Total Africa Asia Azerbaijan Bangladesh Cambodia China Georgia Indonesia Kazakhstan Myanmar Partitioned Zone Philippines Thailand Turkey Vietnam Total Asia Total Australia Europe Denmark Faroe Islands Germany Netherlands Norway Poland United Kingdom Total Europe Total Consolidated Companies Equity Share in Affiliates Kazakhstan Venezuela Total Equity Share in Affiliates Total Worldwide 1 2 1.828 640 294 – 6.418 9.379 8.395 12 973 349 4.120 59 8. Net acreage includes wholly owned interests and the sum of the company’s fractional interests in gross acreage.531 251 1.548 74 14.479 23.885 16 1.832 788 93 9.765 4.515 108 2.212 304 100 404 69.405 1.029 84 1.195 761 292 232 272 343 3.725 70.280 661 5.043 44 – 2.961 737 2.660 63 – – 21 609 790 962 2.059 251 1.695 16 1.085 831 2.651 420 – – 54 1.671 180 14.919 3.748 202 3.591 31 3.369 2.900 87 1.182 303 267 436 536 4.228 158 11.095 87 1.906 1.328 2.106 81 68 26 22 549 – 979 1.958 12.657 304 101 405 71.561 2.886 2006 through 2009 conformed to 2010 geographic presentation.575 694 5.430 8.677 10.576 205 17.729 128.265 645 5.796 2.062 805 291 274 344 376 3.894 887 2.239 17.164 10 2.323 63 – – 22 541 1.762 821 29 44 1.841 10 2.709 39 3.698 608 291 899 129.387 80 6. Table does not include mining acreage associated with synthetic oil production in Canada.633 87 – 84 1.542 69.233 125 684 22.791 49 5.515 53.832 788 93 9.622 11 1.043 44 – 2.950 63 68 26 22 252 – 980 1.
222 33.265 24 – 6 6 – – – 1. Wells that produce both crude oil and natural gas are classified as oil wells.160 31 – 8 8 – – – 1.528 375 – 375 51. Completion refers to the installation of permanent equipment for the production of crude oil or natural gas or.636 30 1.903 33.569 39. the reporting of abandonment to the appropriate agency.156 1.217 6. regardless of when drilling was initiated.462 5.070 Net Productive Wells includes wholly owned wells and the sum of the company’s fractional interests in wells completed in jointly owned operations.416 50.903 1.720 5. Chevron Corporation 2010 Supplement to the Annual Report 45 .501 52.168 31 1.290 1. Some exploratory wells are not drilled with the intention of producing from the well bore.538 1.837 12.2 2010 Productive Dry Year ended December 31 2009 Productive Dry 2008 Productive Dry 2007 Productive Dry 2006 Productive Dry Net Productive Exploratory Wells Completed Number of wells 75 Consolidated Companies United States Exploratory Development Total United States Other Americas Exploratory Development Total Other Americas Africa Exploratory Development Total Africa Asia Exploratory Development Total Asia Australia Exploratory Development Total Australia Europe Exploratory Development Total Europe Total Consolidated Companies Equity Share in Affiliates Exploratory Development Total Equity Share in Affiliates Total Worldwide 1 2 1 634 635 – 32 32 1 33 34 1 7 8 1 – 1 – – – 4 582 586 1 36 37 2 40 42 5 3 8 2 – 2 1 – 1 8 846 854 39 35 74 2 33 35 9 665 674 4 – 4 1 6 7 2 4 6 2 – 2 1 – 1 2 1 3 – – – – – – 4 875 8 5 16 8 951 11 967 19 60 879 13 39 44 83 6 43 49 13 597 610 2 – 2 2 8 10 6 – 6 2 – 2 9 – 9 – – – – – – 45 4 34 38 1 45 46 18 493 511 3 – 3 1 9 10 3 – 3 30 15 – 2 2 7 1 8 – – – – – – 12 0 06 07 08 09 10 5 5 445 15 450 20 5 – 5 – 4 4 2 – 2 – – – 9 1 580 10 589 11 4 – 4 – 7 7 2 – 2 – – – Crude Oil Natural Gas Net Productive Development Wells Completed Number of wells 1800 1350 1. Net Wells Completed includes wholly owned wells and the sum of the company’s fractional interests in jointly owned wells completed during the year.648 12 – 16 16 – – – 1.501 2.426 50.835 1.633 30 – 3 3 – – – 1.279 9. 0 06 07 08 09 10 Natural Gas Crude Oil Net Productive Wells1.127 51.589 32 2006 through 2009 conformed to 2010 geographic presentation.730 12. in the case of a dry well.671 38.2 2010 2009 2008 At December 31 2007 2006 Consolidated Companies United States Oil Gas Total United States International Oil Gas Total International Total Consolidated Companies Equity Share in Affiliates Oil Gas Total Equity Share in Affiliates Total Worldwide 1 2 32.Upstream Operating Data Net Wells Completed1.271 24 1.664 12 1.291 413 2 415 51.000 14.043 39.212 39.591 12. Further categorization of productive or dry is based on the determination as to whether hydrocarbons in a sufficient quantity were found to justify completion as a producing well.164 10.182 12.706 33.391 10.683 404 2 406 53.575 32 1 13 14 – – – 450 900 1. In such cases. Includes wells producing or capable of producing and injection wells temporarily functioning as producing wells.268 51.695 375 – 375 51.595 5.089 32.260 10. “completion” refers to the completion of drilling. whether or not the well is actually going to be completed as a producer.817 403 2 405 51.513 11.720 38.067 6.
refinery. at the Pascagoula. . Mississippi.Downstream Improve returns and grow earnings across the value chain. Photo: Continuous catalytic reformer. completed during 2010.
marketing. Réunion and Zambia and 21 product terminals. • Adding value to upstream operations through integration.577 $ 2. these factors contributed to a modest recovery in refining margins during 2010 from very weak levels in 2009. Worldwide marketing margins remained narrow in 2010. • Reported net income of $2. $ 2. Key objectives include the following: • • • • • Continue to improve safety and refinery reliability. global refining capacity increased by 1 million barrels per day. and consumer packaging. Industry Conditions Earnings in refining and marketing in 2010 improved from historic lows in 2009 due to recovering global demand.2 percent in 2010 from depressed levels in the prior year.S. demand recovered in electrical and electronic applications. Advance projects in the chemicals and base-oil manufacturing businesses that add capacity to serve key markets. Downstream Financial and Operating Highlights (Includes equity share in affiliates) Dollars in millions 2010 2009 Segment earnings* Refinery crude oil inputs (Thousands of barrels per day) Refinery capacity at year-end (Thousands of barrels per day) U. which bolstered sales and margins. refinery.Highlights Downstream Highlights The company enjoys a strong presence in all aspects of the downstream industry — refining. • Commenced operations on two projects in Qatar.878 2. • Restructured the refining and marketing business to improve operating efficiency.000-barrel-per-day heavy-oil hydrocracker at the Yeosu Refinery in South Korea and a continuous catalytic reformer at the Pascagoula.158 64% 65% 3. jet fuel. Globally.5 billion.547 21. naphtha and distillates grew by approximately 3. excess refined product supplies and surplus refining capacity. Downstream Overview Fuel Refinery Major Chemical Manufacturing Facility Chemicals experienced improved business conditions driven by a rebound in product demand. Despite some capacity coming offline.221 1.552 $ 3.574 $ 1. but remained relatively weak with continued economic softness. gasoline and jet fuel yields (Percent of U. Worldwide demand for motor gasoline.113 3.160 2.464 $ 246 $ 335 $ 729 $ 737 $ 2.478 $ 473 1.275 217 232 19. transportation. refinery production) Refined product sales (Thousands of barrels per day) Motor gasoline sales (Thousands of barrels per day) Natural gas liquids (NGLs) sales (Thousands of barrels per day) Number of marketing retail outlets at December 31 Refining capital expenditures* Marketing capital expenditures Chemicals and other downstream capital expenditures* Total downstream capital expenditures* * 2009 conformed to 2010 segment presentation. according to the December 2010 Oil & Gas Journal survey. chemicals and transportation. 2011 Outlook Expecting ongoing challenging industry conditions. Advance projects that improve refinery feedstock flexibility. Streamline the company’s refining and marketing asset portfolio. Complete cost-reduction programs as part of the restructuring that was announced in 2010. reduce costs and achieve sustained improvement in financial performance. high-value product yield and energy efficiency. Downstream will continue to focus on lowering operating costs and sustaining reduced capital spending in order to improve efficiency and financial returns.254 1. Business Strategies Improve returns and grow earnings across the value chain by: • Achieving world-class safety and reliability performance. including an ethylene cracker located in Ras Laffan and a polyethylene and normal alpha olefins complex located in Mesaieed.S. including strong financial performance in the lubricants and chemicals businesses. Mississippi. technology and organizational capability. • Driving earnings across the crude-to-customer value chain. Completed the sale of businesses in Mauritius. • Commissioned a new 60. Overall.536 Chevron Corporation 2010 Supplement to the Annual Report 47 . but were above 2009 levels.894 1. 2010 Accomplishments • Achieved the lowest-ever total number of recordable safety incidents. • Continuing to improve execution of the base business.
South Carolina. Mississippi. the company commissioned a continuous catalytic reformer at the Pascagoula. Through a network of more than 80 fuel terminals. Also in Pascagoula. the company intends to grow sales of motor gasoline and diesel fuel under the premium Chevron and Texaco brands in select markets primarily in the western. refer to the Lubricants section on page 50. retail fuel sales volumes in 2009. Also in 2010 and early 2011. Vincent. Latin America and the United States. Kentucky. the organization sold a daily average of approximately 1. In late 2010. which will improve equipment reliability and utilization and allow the refinery to optimize production of high-value products. manufacturing and blending products at its refineries. Barbados. West Virginia and parts of Tennessee.100 stations and to commercial and industrial customers through supply arrangements. 48 Chevron Corporation 2010 Supplement to the Annual Report . French Guiana. Aligning the Marketing Portfolio Through market exits and divestitures.Downstream Refining and Marketing Refining and Marketing The company’s refining and marketing activities are coordinated by two geographic organizations. Americas Products and International Products. Grenada. focused on optimizing the fuels value chain from crude to customer. Delaware. Virginia.S. following the receipt of local regulatory and government approvals. terminal divestitures to strengthen the cost-competitiveness of its terminal network while maintaining the necessary scale to meet the needs of its customers. Serving the Crude-to-Customer Value Chain The Americas Products portfolio includes six wholly owned refineries in North America with a crude capacity of approximately 1 million barrels per day. construction began on a new processing unit designed to further improve the El Segundo. Project completion is scheduled for 2012.800 Chevron.S. the company expects to complete the sale of additional U. In 2011.and Texaco-branded retail outlets in Canada. Ohio. Guyana. North Carolina.6 million barrels of gasoline and other refined products. and selling finished products through its marketing and commercial networks. and Trinidad and Tobago and expects to complete all transactions by third quarter 2011. Belize. Additionally. Chevron continues to leverage its proprietary Techron technology in these markets in order to maintain a leading position in branded fuels.S. Lucia. Sales in these markets represented approximately 8 percent of the company’s total U. in fourth quarter 2010.and Texaco-branded motor fuels in the District of Columbia. West Coast (Blended 5–3–1–1)* U. During 2010. Selectively Improving Refining Flexibility and Yield In 2010. C = Gas oil — Non–U. refinery’s reliability. Many of these refineries have hydroprocessing units capable of converting lower-quality crude oil into a variety of mid-distillate products. Dominica. Gulf Coast (Maya 5–3–1–1)* Singapore (Dubai 3–1–1–1)* Northwest Europe (Brent 3–1–1–1)* *Numbers: A–B–C–D A = Crude oil B = Motor gasoline C = Diesel fuel — U. wholesale. where the company previously sold to retail customers through approximately 1. For additional details about this project. high-value product yield and flexibility to process a range of crude slates. D = Jet fuel — U. the company continued work on projects to improve refinery flexibility and the capability to process lower-cost feedstocks.S. Additionally. Martinique. Americas Products The organization serves commercial and industrial. engineering and procurement activities continued on a lubricant base-oil facility. St. Indiana. southeastern and Gulf Coast regions of the United States. Chevron is a major supplier of commercial aviation fuel in the United States. Additionally. California. the company continues to align its marketing portfolio to source a greater percentage of its refined product sales directly from Chevron’s refineries. the company completed eight of its 13 planned U. terminals as part of the previously announced plan to divest 13 facilities.S. Nicaragua. Latin America and the United States through the world-class Chevron and Texaco brands.S. refinery. Kitts.S. the company discontinued sales of Chevron. St. and retail customers in Canada. The company also signed an agreement in late 2010 for the sale of its fuels-marketing and aviation businesses in Antigua.S. New Jersey. aviation. D = Fuel oil — Non–U. where the company enjoys leading market positions. Costa Rica. St. Pennsylvania. Guadeloupe. Each organization’s activities include securing raw materials. During 2010. Industry Refining Margins Dollars per barrel 30 25 20 15 10 5 0 06 07 08 09 10 U. the company serves customers at approximately 9.S. Maryland.
including the Pembroke.5 million barrels of gasoline and other refined products during 2010. In third quarter 2010.Refining and Marketing Downstream International Products The organization provides premium quality Caltex. which are well positioned to supply expected growth in the Asia-Pacific region. including the company’s share of affiliates. Project start-up is scheduled for 2013. the company and its affiliates serve customers at approximately 9. company-operated service stations into retailer-owned. Also in 2010. Fuel Margins Dollars per barrel 6 4 2 0 06 07 08 09 10 U. has a crude capacity of more than 1 million barrels per day. the company announced agreements to sell its United Kingdom and Ireland refining and marketing business. work continued on projects to improve refinery flexibility and the capability to process lower-cost feedstock.000-barrel-per-day heavy-oil hydrocracker at the 50 percent-owned Yeosu Refinery in South Korea was commissioned and reached full capacity. the company sold its interest in 15 terminals and converted more than 120 company-owned. During 2010 and early 2011. Singapore and Thailand. The refinery network. Africa. construction began on modifications to the 64 percent-owned Map Ta Phut Refinery in Thailand to meet regional specifications for cleaner motor gasoline and diesel fuels. In February 2011. commercial aviation fuel is marketed at more than 90 airports across these markets. refinery. Africa. Australia. the company continues to align its marketing portfolio more closely with its refining system. Additionally. a new 60. Aligning the Marketing Portfolio Through market exits and divestitures. wholesale. the company announced agreements to sell its fuels-marketing and aviation businesses in Spain. retailer-operated sites operating under the Caltex brand. and retail customers in Europe.and Texaco-branded fuel products to commercial and industrial. In March 2011. Chevron continues to leverage its proprietary Techron technology in these markets in order to maintain a leading position in branded fuels.000-barrel-per-day gas-oil fluid catalytic cracking unit. Through a network of more than 90 fuel terminals. aviation. Réunion. Gulf Coast* *Industry margins. the Middle East and the Asia-Pacific region. Mauritius.S.800 Caltexand Texaco-branded retail outlets in Europe. Chevron Corporation 2010 Supplement to the Annual Report 49 . plans were announced to construct a 53. The unit is designed to further reduce feedstock costs and improve high-value product yield. Additionally. the company completed the sale of fuelsmarketing businesses in Malawi. United Kingdom. The organization sold a daily average of approximately 1. Also at the Yeosu Refinery. Serving the Crude-to-Customer Value Chain The International Products portfolio includes nine refineries and is anchored by its four large affiliates in South Korea.S. Project completion is scheduled for 2012. The new hydrocracker is designed to reduce feedstock costs and improve Industry/Chevron Marketing high-value product yield and will further strengthen the refinery’s competitiveness. West Coast* Asia–Pacific/Middle East/Africa U. Tanzania and Zambia. Selectively Improving Refining Flexibility and Yield In 2010. the Middle East and the Asia-Pacific region.
retail. 15. Mississippi. 50 Chevron Corporation 2010 Supplement to the Annual Report . Chevron handles more than 400 different grades of crude oil and petroleum products and manages nearly 5 million barrels per day in commodity transactions. capturing profitable trading opportunities.S. Through strategic partnerships with original equipment manufacturers. Leveraging Success In 2010. The company’s strategic focus continued to be on key growth markets. industrial and marine customers. product lines were streamlined and additional markets outside the United States were exited. Through the company’s global network of 16 blending facilities. reducing Downstream’s raw material and transportation costs. which together produce 1 million barrels of lubricating oils. The product line of lubrication and coolant products includes well-known brands such as Havoline. Belgium and the United States.4 billion project. supplier of premium lubricant base oil. Building a Premium Base-Oil Leader Preparations continued in 2010 for the 25. Trading The Trading organization supports Chevron’s global supply chain by maximizing the company’s equity crude oil revenues. the Lubricants organization achieved strong financial results and world-class reliability performance. the company increased lubricants sales volumes more than 25 percent from 2009 levels by expanding the distributor network and forging new relationships with both Chinese and globally based original equipment manufacturers. The final investment decision was reached in first quarter 2011 on the $1.000-barrel-per-day premium base-oil facility at the company’s Pascagoula. Meropa and Taro. in China. and managing the market risks associated with holding physical positions in crude and finished products. the Lubricants organization is well positioned to supply markets around the world.Downstream Lubricants and Trading Lubricants Chevron is among the leading global marketers of finished lubricants and is a top U. In 2010. In February 2011. This global network has enabled the company to consistently meet customer needs at world-class levels of reliability. Complexity of operations was further reduced as production facilities were optimized. and construction is scheduled to be completed by year-end 2013. as well as building distribution channels. The organization’s activities include optimizing the supply of crude and other raw materials to Chevron’s refining network and integrating equity crude oil from Chevron’s upstream operations. the company markets crude oil from Upstream operations to third parties and supplies finished products to serve Chevron’s marketing system. with an emphasis on its marketing network. The company intends to continue growth initiatives in these and other key markets in 2011.000 barrels of coolants annually. This addition to Chevron’s base-oil production capacity is expected to position the company as the worldwide industry leader in premium base-oil production. Chevron is also a leader in developing products to meet future engine and machinery needs at its lubricant technology centers in Australia. The company provides differentiated products to meet the specific needs of commercial. such as China and Brazil. the company announced an agreement to sell its finished lubricants business in Spain.000 tons of industrial greases and 35. In addition. the company launched a major initiative to strengthen its network in Brazil and leverage its two Brazilian lubricants-manufacturing plants. Ursa. Also. Delo. refinery.
blended or conducted research at 10 locations around the world. Oronite manufactured. Saudi Arabia. CPChem commenced operations for its 49 percent-owned Q-Chem II project. heavy-duty diesel trucks.000-ton-per-year 1-hexene plant at the Cedar Bayou facility in Baytown. such as dispersants. Executing Strategy and Expanding the Portfolio During 2010.com Oronite Oronite is a world-leading developer. Many fuel additive packages are unique and blended specifically to individual customer specifications. Expanding in Key Growth Markets Following start-up in late 2009. in which Q-Chem II owns 54 percent of the capacity rights. such as power transmission fluids and hydraulic oils.000-metric-ton-per-year normal alpha olefins plant in Mesaieed. Oronite lubricant additives are blended with refined base oils to produce finished lubricants used primarily in engine applications. As an industry leader. Chevron Phillips Chemical Company LLC (CPChem) and Chevron Oronite Company (Oronite). Oronite fuel additives are used to improve engine performance and extend engine life.cpchem. such as passenger cars. 1-hexene and polystyrene units. and specific packages are tailored for each region’s markets. The joint-venture project includes olefins. Fuel performance standards vary for customers throughout the world. Included in the project is a separate joint venture for a 1. specialty chemicals and piping. which contributed to improved profit margins. Qatar. The plant is expected to be the largest 1-hexene unit in the world and will utilize CPChem’s proprietary 1-hexene technology. are combined to meet the desired performance specifications. which improve the performance of lubricants and fuels. which provides ethylene feedstock to the high-density polyethylene and normal alpha olefins plants in Mesaieed. polyethylene. Chevron Corporation 2010 Supplement to the Annual Report 51 . CPChem’s flexible feedstock capability allowed the company to capitalize on low input costs. inhibitors and viscosity index improvers. Also in the Middle East. For more information on CPChem. ships. This additional capacity enhances the company’s ability to produce detergent components for applications in marine and automotive engines and strategically positions Oronite to respond to growth in the Asia-Pacific region. The main additive applications are for gasoline and diesel fuels. CPChem CPChem is a 50 percent-owned affiliate and is one of the world’s leading producers of olefins and polyolefins and a leading supplier of aromatics. alpha olefins. At year-end 2010. manufacturer and marketer of quality additives.Chemicals Downstream Chemicals The company’s chemical activities are divided into two businesses. In the United States. CPChem’s 35 percent-owned joint venture continued construction on a petrochemical project in Al Jubail. Texas. styrenics. The project includes a 350. Project start-up is expected in late 2011.3 million-metric-ton-per-year ethylene cracker in Ras Laffan. locomotives and motorcycles.000-metric-ton-per-year high-density polyethylene plant and a 345. detergents. refer to its Web site at www. Specialty additives are marketed for other oil applications. each utilizing CPChem’s proprietary technology. buses. CPChem had 36 manufacturing facilities and four research and technical centers around the world. In fourth quarter 2010. Oronite conducts research and development for additive component and blending packages to meet the needs of increasingly demanding engine and equipment performance requirements. polypropylene. Typically. with start-up expected in 2014. the company achieved full capacity in early 2010 at the detergent expansion facility in Singapore. CPChem announced in fourth quarter 2010 the development of a 200. several additive components. At year-end 2010. The ethylene cracker in Ras Laffan commenced operations in April 2010. with plants located in both Mesaieed and Ras Laffan.
The company’s transportation businesses, including Pipeline and Shipping operations, are responsible for transporting a variety of products to customers worldwide. Chevron owns and operates an extensive network of crude oil, refined product, chemical, NGLs and natural gas pipelines and other infrastructure assets in the United States. The company also has direct and indirect interests in other U.S. and international pipelines. The company’s marine fleet includes both U.S.- and foreign-flagged vessels. The U.S.-flagged vessels are engaged primarily in transporting refined products in the United States between the Gulf Coast and the East Coast and from California refineries to other U.S. West Coast locations, Alaska and Hawaii. The foreign-flagged vessels are engaged in transporting crude oil from the Middle East, Asia, the Black Sea, Mexico and West Africa to ports in the United States, Europe, Australia and Asia, as well as refined products to and from various locations worldwide. In addition to the vessels described above, the company owns a one-sixth interest in each of seven liquefied natural gas (LNG) tankers, transporting cargoes for the North West Shelf Venture in Australia. Chevron’s fleet of owned and chartered tankers is completely double-hulled. Aligning the Transportation Portfolio Pipeline The company completed the expansion of approximately 2 billion cubic feet at the Keystone natural gas storage facility near Midland, Texas, bringing capacity to nearly 7 billion cubic feet.
Northwest Salt Lake System
Raven Ridge (56.3%) Salt Lake City
Standard Pacific Gas (14.3%)
Salt Lake/Rangely System
KLM Bakersfield CUSA/Northam
West Texas Gulf (28.3%) Sabine Kuparak (5%) Endicott (10.5%) Trans Alaska (1.4%) Pascagoula MAGS Chandeleur Bridgeline Cypress (50%) High Island (7.5%) Venice-Faustina TENDS Caesar (4%) MEXICO Gulf Coast Crude Cleopatra (2%) (Various %) Amberjack (25%) West Texas LPG (80%) Natural Gas Products (Including LPG) Carbon Dioxide
Cook Inlet (50%) Crude Oil
Includes pipelines owned by Upstream but operated by the pipeline business. Interest in each pipeline is 100% unless otherwise noted.
In the U.S. Gulf of Mexico, Chevron is leading the construction of a 136-mile (219-km), 24-inch (61-cm) crude oil pipeline from the planned Jack/St. Malo deepwater production facility to a platform in Green Canyon Block 19 on the Gulf of Mexico shelf, where there is an interconnect to pipelines delivering crude oil to the Gulf Coast region. The project is expected to be completed by start-up of the production facility, projected for 2014. Work is in progress to return the Cal-Ky Pipeline, which was decommissioned in 2002, into crude oil service as a supply line for the Pascagoula Refinery. This pipeline, which spans 103 miles (166 km), begins in Plaquemines Parish, Louisiana, and ends at the refinery, is also expected to provide additional outlets for the company’s equity crude oil production. The pipeline is expected to return to service in 2012. In fourth quarter 2010, the company sold its 23.4 percent ownership interest in Colonial Pipeline, which transports products from supply centers on the U.S. Gulf Coast to customers located along the Eastern seaboard. Refer to pages 23, 25 and 26 in the Upstream section for information on the Chad/Cameroon pipeline, the West African Gas Pipeline (WAGP), the BakuTbilisi-Ceyhan (BTC) Pipeline, the Western Route Export Pipeline (WREP) and the Caspian Pipeline Consortium (CPC). Shipping During 2010, the company managed approximately 2,500 deep-sea tanker voyages, using a combination of single-voyage charters, short- and medium-term charters, and company-owned or bareboat-chartered vessels. As part of its fleet modernization program, the company replaced two U.S.-flagged product tankers in 2010. The new tankers are expected to bring improved efficiencies to Chevron’s U.S.-flagged fleet. The company plans to retire an additional U.S.-flagged product tanker in 2011. The company also has contracts in place to build LNG carriers to support future LNG projects. In addition to providing marine transportation services, the company is staffed with a team of marine technical and operational professionals who are responsible for managing marine risk across the company, assisting with marine project conceptual and feasibility studies and providing marine project construction support.
Net Pipeline Mileage1,2
(Includes equity share in affiliates)
At December 31
Crude Oil Lines United States International3 Total Crude Oil Lines Natural Gas Lines United States International4 Total Natural Gas Lines Product Lines United States5 International Total Product Lines Total Net Pipeline Mileage
2,417 700 3,117 2,400 650 3,050 5,456 424 5,880 12,047
Partially owned pipelines are included at the company’s equity percentage of total pipeline mileage. Excludes gathering pipelines relating to crude oil and natural gas production function. Includes the company’s share of the Chad/Cameroon pipeline, the BTC Pipeline, the WREP and the CPC pipeline. Includes the company’s share of the WAGP. Includes the company’s share of chemical pipelines managed by the 50 percent-owned CPChem.
Chevron Corporation 2010 Supplement to the Annual Report
Downstream Operating Data
Refinery Crude Distillation Utilization1
(Includes equity share in affiliates) Percentage of average capacity Year ended December 31
Worldwide Refinery Utilization*
Percent of capacity
United States Africa-Pakistan Asia-Pacific Europe Other Worldwide
94.6 63.6 92.0 100.5 72.8 91.9
95.5 63.9 87.5 97.4 88.6 90.8
94.8 63.6 88.3 96.8 66.6 86.9
85.0 65.0 92.4 97.8 87.7 85.4
98.6 63.6 93.1 80.4 89.2 89.6
Utilization of Cracking and Coking Facilities2
(Wholly owned) Percentage of average capacity
0 06 07 08 09 10
Sources of Crude Oil Input for Worldwide Refineries
(Wholly owned) Percentage of total input
*Includes equity share in affiliates.
Middle East South America North Sea United States Mexico Africa Other
24.2 16.7 14.7 12.1 11.4 9.4 11.5 100.0
26.7 16.1 13.0 11.4 15.8 6.5 10.5 100.0
27.8 13.3 14.6 9.4 18.9 4.4 11.6 100.0
26.4 9.9 15.4 9.4 19.1 7.8 12.0 100.0
28.9 12.6 12.0 9.8 19.8 5.9 11.0 100.0
Sources of Crude Oil Input for Worldwide Refineries (Wholly Owned)
Worldwide Refinery Production of Finished Products
(Wholly owned) Thousands of barrels per day
Gasoline Jet fuel Gas oil Fuel oil Other
579 232 293 81 133 1,318
656 256 307 90 146 1,455
565 252 278 99 152 1,346
598 217 266 99 146 1,326
569 236 265 90 149 1,309
0 06 07 08 09 10
Sources of Crude Oil Input for U.S. Refineries
(Wholly owned) Percentage of total input
Other Africa Mexico United States
North Sea South America Middle East
Middle East South America United States – excluding Alaska North Slope United States – Alaska North Slope Mexico Africa Asia-Pacific Other
28.8 23.2 8.7 7.7 15.6 6.3 5.7 4.0 100.0
30.8 21.4 8.6 6.7 21.0 3.2 5.9 2.4 100.0
35.0 16.8 6.3 5.5 23.8 3.0 3.8 5.8 100.0
31.7 13.8 7.6 5.6 26.9 5.5 6.7 2.2 100.0
33.0 16.5 7.0 5.9 26.0 3.9 6.3 1.4 100.0
Sources of Crude Oil Input for U.S. Refineries (Wholly Owned)
U.S. Refinery Production of Finished Products
(Wholly owned) Thousands of barrels per day
Gasoline Jet fuel Gas oil Fuel oil Other
417 194 187 43 115 956
487 213 202 51 128 1,081
426 211 170 56 128 991
431 174 157 58 128 948
416 200 170 51 132 969
0 06 07 08 09 10
Utilization for fuel refineries only. Hydrocrackers, catalytic crackers and coking facilities are the primary facilities used to convert heavier products into gasoline and other light products.
Other Asia–Pacific Africa Mexcio
United States South America Middle East
Chevron Corporation 2010 Supplement to the Annual Report
Downstream Operating Data
Refinery Capacity at December 31
Millions of barrels per day
Refining Capacities and Crude Oil Inputs
(Includes equity share in affiliates) Chevron Share of Capacity Thousands of barrels per day At December 31, 2010 Year ended December 31 Chevron Share of Refinery Inputs
United States – Fuel Refineries/Asphalt Plant El Segundo, California Kapolei, Hawaii Pascagoula, Mississippi Perth Amboy, New Jersey1 Richmond, California Salt Lake City, Utah Total United States Fuel Refineries/Asphalt Plant International – Wholly Owned Canada – Burnaby, British Columbia South Africa – Cape Town 2 United Kingdom – Pembroke 3 Total International – Wholly Owned International – Affiliates Australia – Brisbane (50%) Australia – Sydney (50%) Cameroon – Limbe (8%)4 Côte d’Ivoire – Abidjan (3.7%) 5 Kenya – Mombasa (16%) 6 Martinique – Fort-de-France (11.5%) Netherlands – Europoort (31%) 7 New Zealand – Whangarei (12.7%) Pakistan – Karachi (12%) Singapore – Pualau Merlimau (50%) South Korea – Yeosu (50%) Thailand – Map Ta Phut (64%) Total International – Affiliates Total International
269 54 330 80 243 45 1,021 55 110 210 375 54 68 – – – 2 – 14 6 145 375 100 764 1,139 2,160
250 46 325 – 228 41 890 40 70 211 321 40 53 – – – 2 – 13 4 119 351 101 683 1,004 1,894
247 49 345 – 218 40 899 49 72 205 326 40 56 – – 3 1 – 12 5 113 327 96 653 979 1,878
263 46 299 8 237 38 891 36 75 203 314 40 53 1 – 5 2 – 12 5 128 327 80 653 967 1,858
222 51 285 20 192 42 812 49 72 212 333 44 58 3 2 6 1 24 12 5 132 307 94 688 1,021 1,833
258 50 337 31 224 39 939 49 71 165 285 42 57 3 2 5 2 104 12 5 129 307 97 765 1,050 1,989
0.0 06 07 08 09 10
United States International* *Includes equity share in afﬁliates.
Refinery Crude Oil Inputs
Millions of barrels per day
0.0 06 07 08 09 10
4 5 6
United States International* *Includes equity share in afﬁliates.
The Perth Amboy plant has been idled since early 2008 and is operated as a terminal. Chevron holds 100 percent of the common stock issued by Chevron South Africa (Pty) Limited, which owns the Cape Town Refinery. A consortium of South African partners owns preferred shares ultimately convertible to a 25 percent equity interest in Chevron South Africa (Pty) Limited. None of the preferred shares had been converted as of March 2011. Chevron announced the agreement to sell this refinery in March 2011. Chevron sold its ownership interest in Société Nationale de Raffinage in June 2008. Chevron sold its ownership interest in Société Ivoirienne de Raffinage in January 2008. Chevron sold its ownership interest in Kenya Petroleum Refinery Ltd. in July 2009. Chevron sold its interest in this refinery (Nerefco) in March 2007.
Chevron Corporation 2010 Supplement to the Annual Report
3 Catalytic cracking uses solid catalysts at high temperatures to produce gasoline and other lighter products from gas-oil feedstocks. 9 Chevron announced the agreement to sell this refinery in March 2011. Utah Total United States Fuel Refineries/Asphalt Plant International – Wholly Owned Canada – Burnaby. California Salt Lake City. gas oil and residuum. visbreaking. 4 Hydrocracking combines gas-oil feedstocks and hydrogen at high pressure and temperature in the presence of a solid catalyst to reduce impurities and produce lighter products. Hawaii Pascagoula. coking and hydrocracking processes. such as liquid petroleum gases. naphtha. determined over extended periods of time. British Columbia South Africa – Cape Town 8 United Kingdom – Pembroke 9 Total International – Wholly Owned International – Affiliates Australia – Brisbane (50%)10 Australia – Sydney (50%) Martinique – Fort-de-France (11. 6 Lubricants capacity is based on dewaxed base-oil production.021 55 110 210 375 54 68 2 14 6 145 375 100 764 1. diesel and jet fuel.139 2. None of the preferred shares had been converted as of March 2011.160 65 21 86 – 80 13 265 17 22 90 129 18 22 – – – 23 47 26 136 265 530 46 – 58 – 151 – 255 – – – – – – – 3 – 17 42 – 62 62 317 68 – 98 – – 7 173 – 11 26 37 – – – – – 16 – – 16 53 226 – – – – 20 – 20 – – – – – – – – – – 4 – 4 4 24 Capacities represent typical calendar-day processing rates for feedstocks to process units. 10Source: 2010 Oil & Gas Journal Refining Survey.7%)10 Pakistan – Karachi (12%)10 Singapore – Pualau Merlimau (50%)10 South Korea – Yeosu (50%) Thailand – Map Ta Phut (64%)10 Total International – Affiliates Total International Total Worldwide 1 269 54 330 80 243 45 1. 8 Chevron holds 100 percent of the common stock issued by Chevron South Africa (Pty) Limited. gasoline. kerosene. such as gasoline. maintenance schedules and external factors. Actual rates may vary depending on feedstock qualities. Crude oil is heated at atmospheric pressure and separates into a full boiling range of products. Atmospheric distillation is the first rough distillation cut. New Jersey7 Richmond.Downstream Operating Data Refining Capacity at Year-End 2010 (Includes equity share in affiliates) Thousands of barrels per day Atmospheric Distillation 2 Chevron Share of Capacity1 Catalytic Cracking 3 Hydrocracking 4 Residuum Conversion 5 Lubricants 6 United States – Fuel Refineries/Asphalt Plant El Segundo. California Kapolei. Mississippi Perth Amboy. A consortium of South African partners owns preferred shares ultimately convertible to a 25 percent equity interest in Chevron South Africa (Pty) Limited. 5 Residuum conversion includes thermal cracking. which owns the Cape Town Refinery. 7 The Perth Amboy plant has been idled since early 2008 and is operated as a terminal. 2 Chevron Corporation 2010 Supplement to the Annual Report 55 . which rely primarily on heat to convert heavy residuum feedstock to the maximum production of lighter boiling products.5%)10 New Zealand – Whangarei (12.
Other Residual Fuel Oil Gas Oil & Kerosene Jet Fuel Gasoline *Includes equity in afﬁliates.349 521 583 271 197 192 1.028 546 452 288 3.413 589 710 278 257 182 2.501 $ 32.252 39. Light-product sales include motor gasoline.457 581 730 274 271 171 2.965 $ 95.851 1.195 1.474 43.885 $ 51.309 951 545 409 270 3.279 $ 41.S.753 $ 72.329 1.429 512 – 728 221 271 138 99 1.278 2.275 873 518 319 269 3.281 939 552 384 273 3.307 1.621 492 50 800 400 0 06 07 08 09 10 Total International Worldwide2 Gasoline Gas oil and kerosene Jet fuel Residual fuel oil Other petroleum products Total Worldwide Other Residual Fuel Oil Gas Oil & Kerosene Jet Fuel Gasoline International Refined Product Sales* Thousands of barrels per day 2250 1 2 Includes share of equity affiliates’ sales: Includes amounts for buy/sell contracts: Light Product Sales1.686 53.451 1.484 492 – 712 252 280 128 122 1.764 1.494 595 776 266 324 166 2.561 $ 38. Refined Product Sales Thousands of barrels per day 1600 Refined Product Sales Thousands of barrels per day Year ended December 31 2010 2009 2008 2007 2006 1.005 2.220 1.764 Year ended December 31 2007 2006 1800 Sales Revenues (Millions of dollars) United States International Total Sales Revenues Sales Volumes (Thousands of barrels per day) United States International Total Sales Volumes 1 2 $ 39.127 1.155 1.403 555 647 264 209 176 1.674 65.573 450 0 06 07 08 09 10 Consolidated companies only and includes amounts for buy/sell contracts prior to second quarter 2006.349 1200 United States Gasoline Gas oil and kerosene Jet fuel Residual fuel oil Other petroleum products Total United States International1 Gasoline Gas oil and kerosene Jet fuel Residual fuel oil Other petroleum products 700 232 223 99 95 1.113 562 – 720 226 254 110 93 1.254 516 – 692 229 274 127 91 1.669 1 900 1.329 2.200 1.221 815 494 296 287 3.465 $ 89.195 1350 $ 82.904 51. gas oils and kerosene. jet fuel.Downstream Operating Data U.129 2.244 1.2 2010 2009 2008 1. Natural Gas Liquids Sales (Includes equity share in affiliates) Thousands of barrels per day Year ended December 31 2010 2009 2008 2007 2006 United States International 139 78 217 144 88 232 144 97 241 135 96 231 72 81 153 Total 56 Chevron Corporation 2010 Supplement to the Annual Report .256 2.559 $ 16.498 1.160 1.016 1.027 1.
575 950 1.S.000–120.033 for 2010. Int’l.183 2 1.224.064 496 863 865 1. Year ended December 31 2009 Int’l.000 Total Time-Chartered Total Crude Oil and Refined Product Tankers 1 2 Affiliate Company Retailer 5 – – – – 5 – – – – 5 – 6 4 5 3 18 6 6 2 14 32 5 – – – – 5 – – – – 5 – 6 4 6 3 19 7 8 2 17 36 5 – – – – 5 – – – – 5 – 6 4 6 3 19 10 7 – 17 36 4 – – – – 4 – – – – 4 – 6 5 6 3 20 16 8 – 24 44 3 – – – – 3 – – – – 3 – 5 5 6 3 19 14 8 – 22 41 Consolidated companies only. U.861 11. 29 301 8 332 42 307 7 358 32 255 5 328 36 278 6 333 25 297 3 344 * Consolidated companies only.188 930 824 3. Millions of barrels Billions of ton-miles charters. 2008 Int’l.239 13.000–320. Includes tankers chartered for more than one year. 5000 0 Vessels – Crude Oil and Refined Product Tankers by Type.307 15.2 2010 Company Other At December 31 Marketing Retail Outlets Number of outlets 2009 Company Other 2008 Company Other 2007 Company Other 2006 Company Other 30000 United States Canada Europe Latin America Asia-Pacific Africa-Pakistan 495 7.488 9.S.031 1. U. 5. 2008 Int’l. Company outlets are motor vehicle outlets that are company owned or leased.272 1.091 1. Company-Owned and Bareboat-Chartered 25. bareboat-chartered and time-chartered vessels.264 790 828 2.111 507 160 84 977 1.000 120.293 2.000–65.000 65.148 578 162 396 1.095 and 5. excludes cargo carried by single-voyage Chevron Corporation 2010 Supplement to the Annual Report 57 . those with dead-weight tonnage less than 25.510 955 1. 2009. 2006 U. Cargo Transported – Crude Oil and Refined Products* 2010 U. 2007 and 2006 respectively.136 1. Dead-Weight Tonnage1 2010 U.169 541 841 1.S.632 15.229 1.756 159 2 56 1. 5. Int’l.777 502 9.S.S.100 548 162 101 1.Downstream Operating Data Marketing Retail Outlets1.000–65.514 10000 Excludes outlets of equity affiliates totaling 4. 2008.150 4. These outlets may be either company operated or leased to a dealer. U.177 25000 20000 19. 2007 Int’l.909.547 15000 Total 1 2 4.000. and those used exclusively for storage. U. 2007 Int’l. Excludes tankers chartered on a voyage basis.178 1 1.134 1. Includes cargo carried by company-owned.000–320.000 Total Company-Owned and Bareboat-Chartered Time-Chartered2 25. At December 31 06 07 08 09 10 2009 Int’l. Int’l.000 160.S. U.198. Other outlets consist of all remaining branded outlets that are owned by others and supplied with branded products.000–160.000 65.000–120.979 15.040 1. Int’l.089 161 – 74 1. 2006 U.S.S.442 1.000 Above 320.S.760 2. 5.227 2.025 4.480 9.509 9.000 160.050 2 1.S. U.
Bakersfield.Other Businesses 58 Photo: One of seven next-generation. California. . Chevron Corporation 2010 Supplement to the Annual Report precommercial solar panel technologies installed at a solar evaluation project.
As of early 2011. in partnership with Colorado State University. the Wafra Field in the Partitioned Zone between Saudi Arabia and Kuwait. Biofuels/Hydrogen • Completed a pilot project that utilized Chevron’s hydroprocessing and Isodewaxing technologies to refine nonedible bio-oils into renewable fuel that meets road diesel specifications. production and reservoir recovery. • Tested a new modular and mobile seawater injection system for waterflooding marginal offshore oil reservoirs at high rates and low cost. • Developed ZeolitePlus. This new technology application is designed to use solar energy to produce steam for enhanced oil recovery. Gulf of Mexico. Information Technology • Implemented interactive 3-D models to train operators of the Tahiti platform and the Agbami floating. ICR250. including gas-to-liquids oils. California. • Commercialized new downhole communication technology that enables wireless transmission of well data. Seven solar panel technologies are being tested to establish the viability of these technologies for use at other Chevron sites. • Established a Machinery Support Center that enables experts to remotely monitor upstream rotating equipment and facilitate faster. 2010 Accomplishments Upstream and Gas • Deployed next-generation interpretation and earth modeling software frameworks across Chevron’s upstream business. Safely completed decommissioning of four hydrogen refueling stations and transferred one prototype station to a third party. • Commercialized Chevron’s patented LPG hydraulic fracturing technique. advanced geographic modeling tool to significantly improve and standardize pipeline route planning and economics. • Patented. • Continued construction of a 29-megawatt solar-to-steam demonstration project in the San Joaquin Valley in California. • Concluded the multiyear hydrogen demonstration program successfully with the U. which offers an improved approach to enhancing production of tight gas reservoirs. and the Duri Field in Indonesia. including hurricanes.Technology Other Businesses Technology Chevron’s technology organization supports the company’s worldwide businesses by identifying and deploying technology solutions and capabilities that differentiate business performance and create options for the future. a technique using in-well fluorescent tracers to accurately measure subsurface hydrocarbon movement.S. a breakthrough technology that enables manufacturing of high-performance zeolite catalysts at much faster throughput with fewer processing steps. • Deployed the heavy oil thermal component of the next-generation reservoir simulator in the Hamaca Field in Venezuela. Additional transformation solutions that added for well performance and waterflood management. cost-effective responses to major equipment problems. AUVs could enhance monitoring of deepwater subsea systems and be used for intervention planning and in response to major incidents. The beneficial reuse project is one of the largest CPV solar installations in the world and will be used to evaluate the benefits of emerging solar technology and applicability to other operations and properties. storage and offloading vessel. • Commercialized a new mid-distillate hydrocracking catalyst. enabling a step change in productivity and decision quality in reservoir characterization and simulation. • Piloted autonomous underwater vehicle (AUV) operations in the shallow water of the U. New Mexico. The training technique has been deployed to accelerate new facility commissioning. • Delivered Upstream Workflow Transformation solutions that enable better and faster operating decisions via improved data usage and automated workflows. Emerging Energy • Constructed and commissioned a 1-megawatt concentrating photovoltaic (CPV) solar facility on the tailing site of Chevron’s molybdenum mine in Questa. production. the center supports the company’s Angola operations. that is capable of processing a wide range of feedstocks. • Progressed development of a single-trip multizone fracturing system that will provide significant savings in the company’s deepwater completions. and additional deployments are planned during the year. • Constructed and commissioned a next-generation 740-kilowatt solar photovoltaic installation on a former refinery site in Bakersfield. Downstream • Developed the next-generation Isodewaxing catalyst platform to achieve higher yields and improve product quality. Chevron Corporation 2010 Supplement to the Annual Report 59 . • Completed successful laboratory tests on new fiber optic sensing technologies developed to improve operational efficiency in refining.S. reduce downtime and have a positive impact on safety. Department of Energy and the Florida Department of Environmental Protection. • Developed and deployed a proprietary.
60 Chevron Corporation 2010 Supplement to the Annual Report . located in Casper. In addition. • Invested in five start-up companies involved in high-density materials for hydraulic fracturing. the Marine Corps Logistics Base Albany Landfill Gas Project in Georgia. including a number of facilities that provide steam for enhanced recovery in heavy oil operations. benefiting the company’s power-generation assets embedded within production and refining facilities. innovative downhole data measurement and transmission. utilizing state-of-the-art tools and technology.1 terawatts. these assets deliver world-class reliability results. and drilling fluid filtering and separation. electric submersible pumps. Wyoming. Chevron Energy Solutions (CES) CES is a wholly owned subsidiary that develops and builds sustainable energy projects that increase energy efficiency and renewable power. high-quality energy for government. primarily through joint ventures in the United States and Asia. For additional information on the company’s geothermal activities. Twelve of the assets consist of efficient combined-cycle and gas-fired cogeneration facilities that utilize waste-heat recovery to produce electricity and support industrial thermal hosts. Chevron is the world’s largest producer of geothermal energy. The 13th facility is a wind farm. with major operations in Indonesia and the Philippines. renewable energy to the local utility provider. The company has more than 25 years of experience in successfully developing and operating commercial power projects for utilities and large industrial customers worldwide. Power Generation Chevron’s Global Power Company manages interests in 13 power-generation assets with a total operating capacity of more than 3. that is designed to optimize the use of a decommissioned refinery site for delivery of clean. CES has developed hundreds of projects that help customers reduce their energy costs and environmental impact. high-performance cloud data storage. education and business facilities. Since 2000. see pages 31 and 32. reduce energy costs. including remote visual tracking.Other Businesses Power Generation and CES Venture Capital • Transferred 12 new technology applications into Chevron’s core operations. Projects announced in 2010 include the City of Brea Energy Efficiency and Solar Project in California. As the company’s center of excellence for power generation. The global power organization also provides comprehensive technical services. remote monitoring and crude oil viscosity technology. and the University of Utah Thermal Storage and New Central Plant Project. and ensure reliable.
S. Quantity shown represents the estimated annual capacity.8 0. Coal markets are dominated by electricity generators. which was formed to develop a coal mine in northern Wyoming. Chevron’s interest in CBMM was sold in mid-2006. During 2010. the company signed a purchase and sale agreement for the sale of the North River Mine and other coal-related assets in Alabama. The company owns and is the operator of a surface coal mine in Kemmerer.1 12.3 4. Mining operations at McKinley were suspended at the end of 2009.2 – 2 3 4 5 6 7 Sales represent the company’s share. Developed Reserves Undeveloped Reserves Mining Operations1 Mine Name/Affiliate State/ Country Capacity2 Principal Operation Annual Sales At 12/31/10 2010 2009 2008 2007 2006 Coal: Kemmerer McKinley3.0 6.5 – 3.4 North River Total Coal Sales Minerals: Mountain Pass 4.0 3.8 – 0. New Mexico.9 11.2 3.5 2.5 4. Industry Conditions Domestic demand for coal has improved from 2009.3 3.6 4.1 8. 0 06 07 08 09 10 • Received an award at Questa for Rescue Response presented jointly by the New Mexico Mining Association in cooperation with the New Mexico Bureau of Mine Safety. The company also owns a 50 percent interest in Youngs Creek Mining Company.7 3. Mining operations at Questa were scaled back in 2009.1 California New Mexico Brazil T&S Underground T&S – 4. a surface coal mine in McKinley. LLC.2 2. Quantities at the coal facilities and niobium facility are shown in millions of tons. In March 2011. Additionally. 2010 Accomplishments • Commenced full reclamation activities at the McKinley Mine in New Mexico.1 2. Mining operations at Mountain Pass were sold in September 2008.8 12. Wyoming. Environmental reclamation activities are in progress at McKinley. Coal Reserves Millions of tons 250 CANADA Youngs Creek Kemmerer UNITED STATES Questa McKinley North River MEXICO U.6 CBMM (35%) 7 1 Wyoming New Mexico Alabama Truck-and-Shovel (T&S) Dragline/T&S Longwall Sulfur Content Low Low Medium Type of Mineral Rare Earths Molybdenum Niobium 5.S. Questa and Mountain Pass (offsite remediation).Mining Other Businesses Mining Chevron’s U. the company announced the intent to divest the remaining coal mining operations. and a molybdenum mine in Questa. which consume about 90 percent of the coal used in the United States.-based mining company produces and markets coal and molybdenum.6 5. Chevron Corporation 2010 Supplement to the Annual Report 61 . as presented by the New Mexico Mining Association.8 – 0. in January 2011.2 – 4. Molybdenum is primarily used as an alloy agent in steel.1 – 5. low natural gas prices relative to coal created a natural gas preference for some power customers.9 – 4. Underground development and production plans at the Questa mine remain scaled back in response to price levels in the molybdenum market.0 4. consistent with increases in electricity consumption.9 7.7 9.5 Questa 4.1 2. The economic slowdown and the resulting decrease in demand for steel led to an overall sharp decrease in molybdenum prices that began in late 2008 and moderated through 2010.5 – 5. Demand for molybdenum continues to be impacted by the economic slowdown.6 5.2 2. Volumes of the rare earth and molybdenum facilities are expressed in millions of pounds. an underground coal mine in North River. including the Kemmerer Mine and Chevron’s interest in Youngs Creek. New Mexico. Alabama. Coal Fields Mines – Coal Mine – Molybdenum ATLANTIC OCEAN 200 189 150 100 50 • Shared the 2010 Safety Innovator of the Year at the Questa and McKinley mines.6 2.
and biodegradable industrial and municipal waste. The government also may retain a share of PSC production as a royalty payment. and drilling of wells. sand and clay. referred to as profit oil and/or gas. The company only discloses proved reserves in its filings with the U. wind. geothermal. Certain terms. coalbeds or other nonrenewable natural resources that are intended to be upgraded into synthetic oil or gas. and “resources. such as butane and propane.g. forestry. Oil Shale Very fine grained sedimentary rocks containing a high proportion of organic matter called kerogen. construction and related activities following discovery that are necessary to begin production and transportation of crude oil and/or natural gas. referred to as cost recovery oil and/or gas. tires. Refinery Utilization Represents average crude oil consumed in fuel organisms or their metabolic byproducts – from sources such as farming. which are used to make plastics. 62 Chevron Corporation 2010 Supplement to the Annual Report . operating methods and government regulations. are measures considered by management to be important in making capital investment and operating decisions. water.” among others. Securities and Exchange Commission (SEC). “potentially recoverable” volumes. hydroelectric power. See barrels of oil-equivalent and oil-equivalent gas. adhesives. natural gas liquids and natural gas amounts using the same basis. plastic pipes. Gas-to-Liquids A process that converts natural gas into and asphalt refineries for the year expressed as a percentage of the refineries’ average annual crude unit capacity. propane. Oil-equivalent reserves are the sum of the liquids reserves and the oil-equivalent gas reserves. Any remaining production. See barrels of oil-equivalent. Liquefied Natural Gas (LNG) Natural gas that is liquefied under extremely cold temperatures to facilitate storage or transportation in specially designed vessels. oil-equivalent gas. biofuels. Petrochemicals Compounds derived from petroleum. Approximately 6. Proved reserves are the estimated quantities that geoscience and engineering data demonstrate with reasonable certainty to be economically producible in the future from known reservoirs under existing economic conditions. Oil-equivalent production is the sum of the barrels of liquids and the oil-equivalent barrels of natural gas produced. See renewables. which may be converted into synthetic crude oil or natural gas. such as “probable” or “possible” reserves. Net production is gross production minus both royalties paid to landowners and a government’s agreed-upon share of production under a PSC. The contractor typically incurs all exploration. Natural Gas Liquids (NGL) Separated from natural gas. household detergents and synthetic motor oils. natural gas liquids and natural gas produced from a property.000 cubic feet of natural gas is equivalent to one barrel of crude oil. Condensate Hydrocarbons that are in a gaseous state at reservoir conditions but condense into liquid as they travel up the well bore and reach surface conditions. Liquefied Petroleum Gas (LPG) Light gases. geophysical and seismic surveys. Estimates change as additional information becomes available. Gross production is the company’s share of total production before deducting both royalties paid to landowners and a government’s agreed-upon share of production under a PSC. These include aromatics. Enhanced Recovery Techniques used to increase or prolong production from crude oil and natural gas fields. development and production costs that are subsequently recoverable out of an agreed-upon share of any future PSC production. Oil-Equivalent Gas The volume of natural gas needed to generate the equivalent amount of heat as a barrel of crude oil. Biofuel Any fuel that is derived from biomass – recently living Production Total production refers to all the crude oil (including synthetic oil). and productionsharing contract. See oil-equivalent gas and production. butane and natural gasoline. Oil Sands Naturally occurring mixture of bitumen (a heavy. may be used to describe certain oil and gas properties in this document. is shared between the parties on an agreed-upon basis as stipulated in the PSC. viscous form of crude oil). that can be maintained as liquids while under pressure. and provide some indication to stockholders of the potential ultimate recovery of oil and gas from properties in which the company has an interest. and hydrogen). Barrels of Oil-Equivalent A unit of measure to quantify crude oil.. bitumen can be refined to yield synthetic oil. shale. Natural gas volumes are converted to barrels on the basis of energy content.Reference Glossary of Energy and Financial Terms Energy Terms Acreage Land leased for crude oil and natural gas exploration and production. costs and specific PSC terms. and olefins. as it is dependent on prices. which is not filed with the SEC. synthetic fibers and household detergents. potentially recoverable volumes are those that can be produced using all known primary and enhanced recovery methods. Renewables Energy resources that are not depleted when consumed or converted into other forms of energy (e. formations called reservoirs and saleable hydrocarbons extracted from oil sands. Using hydroprocessing technology. Development Drilling. ocean and tide. 2010. Production-Sharing Contract (PSC) An agreement between a government and a contractor (generally an oil and gas company) whereby production is shared between the parties in a prearranged manner. solar. Additives Chemicals to control engine deposits and improve lubricating performance. These other terms are used because they are common to the industry. which are used to make packaging.S. The contractor’s share of PSC oil and/ or gas production and reserves varies over time. Investors should refer to proved reserves disclosures in Chevron’s Annual Report on Form 10-K for the year ended December 31. batteries. these include ethane. In that regard. Exploration Searching for crude oil and/or natural gas by utilizing geological and topographical studies. and the contractor may owe income taxes on its portion of the profit oil and/or gas. Reserves Crude oil or natural gas contained in underground rock high-quality transportation fuels and other products.
chevron. very finegrained) formations where the gas was sourced from within the shale itself and is trapped in rocks with low porosity and extremely low permeability. Securities and Exchange Commission. Appraisal wells are exploration wells drilled to confirm the results of a discovery well. Legal Notice As used in this report. plus interest and debt expense and amortization of capitalized interest. Development wells are wells drilled in an existing reservoir in a proved oil. conventional resources are contained within geologic structures/stratigraphy and float buoyantly over water. producing and/or marketing a product and its sales price. Exploration wells are wells drilled to find a new field or to find a new reservoir in a field previously found to be productive of oil and gas in another reservoir.com. Delineation wells are exploration wells drilled to determine the boundaries of a productive formation or to delineate the extent of a find. Synthetic Oil A marketable and transportable hydrocarbon liquid. Earnings Net income attributable to Chevron Corporation resembling crude oil. Production of shale gas requires the use of hydraulic fracturing (pumping a fluid-sand mixture into the formation under high pressure) to help produce the gas. please contact: Chevron Corporation Investor Relations 6001 Bollinger Canyon Road. www. Copies of these reports are available on the company’s Web site. that is. quarterly earnings information and the Proxy Statement. Return on Capital Employed (ROCE) Ratio calculated by dividing earnings (adjusted for after-tax interest expense and noncontrolling interests) by average capital employed. CA 94583-2324 925 842 5690 Email: invest@chevron. 2010. and gas hydrates that cannot commercially flow without well stimulation. Trademark Notice Caltex. Return on Stockholders’ Equity Ratio calculated by dividing earnings by average Chevron Corporation stockholders’ equity. or to all of them taken as a whole. Taro.Reference Shale Gas Natural gas produced from shale (clay-rich. as presented on the Consolidated Statement of Income. Excludes cash flows related to the company’s financing and investing activities. A3201 San Ramon.or gas-producing area. Havoline. that is produced by upgrading highly viscous or solid hydrocarbons. The symbol is “CVX. divided by total debt plus Chevron Corporation stockholders’ equity. an indicator of a company’s ability to pay dividends and fund capital and common stock repurchase programs. Total Stockholder Return The return to stockholders as measured by stock price appreciation and reinvested dividends for a period of time. Return on Total Assets Ratio calculated by dividing earnings by average total assets. total debt and noncontrolling interests.com Chevron Corporation 2010 Supplement to the Annual Report 63 . A2098 San Ramon. or may be requested in writing to: Chevron Corporation Policy. such as extra-heavy crude oil or oil sands.chevron. Delo. kerogen from oil shale. Investor Information If you have any questions regarding the data included herein.S. Goodwill An asset representing the future economic benefits arising from the other assets acquired in a business combination that are not individually identified and separately recognized. Average capital employed is computed by averaging the sum of capital employed at the beginning and end of the year. Unconventional Oil and Gas Resources Hydrocarbons contained in formations over very large areas with extremely low permeability that are not influenced by buoyancy. or may be requested in writing to: Chevron Corporation Comptroller’s Department 6001 Bollinger Canyon Road. wells not capable of producing in commercial quantities. crude oil or natural gas from “tight” rock formations. coalbed methane. Average total assets is computed by averaging the sum of the beginning-of-year and end-ofyear balances. Human Energy. visit Chevron’s Web site.” Publications and Other News Sources Additional information relating to Chevron is contained in its 2010 Annual Report to stockholders and its Annual Report on Form 10-K for the fiscal year ended December 31. Completed wells are wells in which drilling work has been completed and that are capable of producing. Meropa. speeches.com. A3064 San Ramon. Techron.chevron. Cash Flow From Operating Activities Cash generated from the company’s businesses. www. filed with the U. CA 94583-2324 The 2010 Corporate Responsibility Report is available in May on the company’s Web site. Isodewaxing. Wells Oil and gas wells are classified as either exploration or development wells. Average Chevron Corporation stockholders’ equity is computed by averaging the sum of the beginning-of-year and end-of-year balances. Financial Terms Capital Employed The sum of Chevron Corporation stockholders’ equity. www. including capital lease obligations. tar sands. Dry wells are wells completed as dry holes. In contrast. one or more of its consolidated subsidiaries. Government and Public Affairs 6001 Bollinger Canyon Road. less net income attributable to noncontrolling interests. divided by before-tax interest costs. Additional Information Stock Exchange Listing Chevron common stock is listed on the New York Stock Exchange. ZeolitePlus is a trademark of Chevron Intellectual Property LLC. Interest Coverage Ratio Income before income tax expense. that is. It includes articles. Debt Ratio Total debt. the terms “Chevron” and “the company” may refer to Chevron Corporation. each of which manages its own affairs. the term should not be read to include “affiliates” of Chevron. Current Ratio Current assets divided by current liabilities. Unconventional resources include shale gas. Margin The difference between the cost of purchasing. but unless the context clearly indicates otherwise. Chevron. the Chevron Hallmark. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies. news releases. those companies accounted for by the equity method (generally owned 50 percent or less) or investments accounted for by the cost method. CA 94583-2324 For additional information about the company and the energy industry. Texaco and Ursa are registered trademarks of Chevron Intellectual Property LLC.com.
Ltd. Chevron Nigeria Limited Chevron North America Exploration and Production Company Chevron Oronite Company LLC Chevron Pipe Line Company Chevron Products Company Chevron Thailand Exploration and Production.7%) Services Chevron Business and Real Estate Services Chevron Energy Solutions Company Chevron Energy Technology Company Chevron Environmental Management Company Chevron Information Technology Company Chevron Services Company Chevron Technology Ventures Finance Chevron Corporation Texaco Capital Inc. Cabinda Gulf Oil Company Limited Chevron Africa and Latin America Exploration and Production Company Chevron Asia Pacific Exploration and Production Company Chevron Australia Pty Ltd. Ltd. divisions. Trading. Unocal Corporation Exploration and Production Exploration and Production Exploration and Production Exploration and Production Exploration and Production Integrated Energy Activities Exploration and Production Power Generation Integrated Energy Activities Global Gas Activities Electric Power and Cogeneration Mining Exploration and Production Exploration and Production Lubricating Oils and Fuels Additives Crude Oil.Reference Organizations Organization Type/Name Principal Business Principal Areas of Activity Operating Atlas Energy. Marketing.2%) Petroindependencia. Chevron Global Energy Inc. The above listing represents the most significant of the company’s operations. branches.0%) Petroindependiente.A. Legal and Technical Support Services Emerging Technologies Commercial Paper Issuer and Debt Financing Debt Financing United States Angola Africa and Latin America Asia-Pacific Australia Canada International Indonesia International Worldwide Worldwide United States Nigeria North America Worldwide United States United States Thailand International Worldwide Indonesia Partitioned Zone Worldwide Worldwide Angola Eurasia Australia Eurasia United States Worldwide International Venezuela Venezuela Venezuela Venezuela Thailand Kazakhstan West Africa Worldwide United States Worldwide United States Worldwide Worldwide United States Affiliates Angola LNG Limited (36. Chevron Transport Corporation Ltd.S. Eurasia and Middle East Exploration & Production Limited Chevron Geothermal Indonesia. S. Inc. These organizations may represent legal entities or divisions of operating units of legal entities. Chevron Corporation has ownership interests in more than 1.A. Supply and Distribution of Crude Oil and Refined Products Exploration and Production Marine Transportation Integrated Energy Activities Exploration and Production Exploration and Production Exploration and Production Exploration and Production Liquefied Natural Gas Crude Oil Transportation Refining and Marketing Crude Oil Transportation Biofuels Petrochemicals Refining and Marketing Exploration and Production Exploration and Production Exploration and Production Exploration and Production Refining Exploration and Production Natural Gas Transportation Property Management Energy Services Integrated Energy Technology and Services Environmental Remediation Information Technology Financial. S. Chevron Canada Limited Chevron Europe. Chevron U. S. 64 Chevron Corporation 2010 Supplement to the Annual Report . Chevron’s interest is 100 percent unless otherwise noted.000 subsidiaries. Texaco Inc.A.2%) Petropiar. PT Chevron Pacific Indonesia Saudi Arabian Chevron Inc.A. (30%) Star Petroleum Refining Co. Refined Products and Natural Gas Transportation Refining. (39. partnerships and affiliates. S. Chevron Global Gas Chevron Global Power Company Chevron Mining Inc.9%) Caltex Australia Limited (50%) Caspian Pipeline Consortium (15%) Catchlight Energy LLC (50%) Chevron Phillips Chemical Company LLC (50%) GS Caltex Corporation (50%) Petroboscan..4%) The Baku-Tbilisi-Ceyhan Pipeline Company (8. (34. Inc.A. (25. Ltd. (64%) Tengizchevroil LLP (50%) West African Gas Pipeline Company Limited (36.
the potential liability resulting from other pending or future litigation. government-mandated sales. 1984 Acquired Gulf Corporation – nearly doubling the size of crude oil and natural gas activities – and gained significant presence in industrial chemicals. Became the second-largest U. San Francisco. the competitiveness of alternate-energy sources or product substitutes. 1926 Acquired Pacific Oil Company to become Standard Oil Company of California (Socal).S. 1911 Emerged as an autonomous entity – Standard Oil Company (California) – following U. the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects.” “expects. Rockefeller’s original Standard Oil Company.S. technological developments. chemicals and other energy-related industries.Chevron History 1879 Incorporated in San Francisco. 2001 Merged with Texaco Inc.” “seeks. actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. becoming one of the largest U. some of which are beyond the company’s control and are difficult to predict. timing of exploration expenses.S.” “estimates. as the Pacific Coast Oil Company. political events. California. accidents. San Francisco.” “targets. These statements are not guarantees of future performance and are subject to certain risks. 1936 Formed the Caltex Group of Companies.000 retail stations in the western United States. the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities. The reader should not place undue reliance on these forward-looking statements. marketing and chemical margins. 2005 Acquired Unocal Corporation.S. Supreme Court decision to divide the Standard Oil conglomerate into 34 independent companies.” “schedules. Gulf of Mexico and Caspian regions.S. 2002 Relocated corporate headquarters from San Francisco. which speak only as of the date of this report. to manage exploration and production interests of the two companies in the Middle East and Indonesia and provide an outlet for crude oil through The Texas Company’s European markets. an independent U. Unocal’s upstream assets bolstered Chevron’s already-strong position in the Asia-Pacific. where the company was a major producer. becoming the first major Western oil company to enter newly independent Kazakhstan. natural gas liquids and coal. Changed name to Chevron Corporation to convey a clearer. to provide outlets for crude oil from southern Louisiana and the U. In addition. a joint venture with the Republic of Kazakhstan. to develop and produce the giant Tengiz Field..S. 1988 Purchased Tenneco Inc. obtaining the Signal brand name and adding 2. an independent crude oil and natural gas exploration and production company. Produced by Comptroller’s Department. such statements could be affected by general domestic and international economic and political conditions. industry-specific taxes. estimates and projections about the petroleum. U. the potential disruption or interruption of the company’s net production or manufacturing facilities or delivery/transportation networks due to war. to San Ramon. 2010 Corporate Responsibility Report 2010 Corporate Responsibility Report 2010 Supplement to the Annual Report 2010 Annual Report 2010 Annual Report 2010 Supplement to the Annual Report Cautionary Statement Relevant to Forward-Looking Information for the Purpose of “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995 This 2010 Supplement to the Annual Report of Chevron Corporation contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations. high-quality core acreage position primarily in the Marcellus Shale. Chevron Corporation Design f troop design. 1999 Acquired Rutherford-Moran Oil Corporation. California Printing ColorGraphics. developer and producer of shale gas resources. California.S. foreign currency movements compared with the U. California . California. Gulf of Mexico crude oil and natural gas properties. Unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements. Changed name to Chevron Corporation to identify with the name under which most products were marketed. and changed name to ChevronTexaco Corporation. 1961 Acquired Standard Oil Company (Kentucky). severe weather or crude oil production quotas that might be imposed by the Organization of Petroleum Exporting Countries. 2011 Acquired Atlas Energy. dollar.” “believes. This acquisition provided inroads to Asian natural gas markets.-based energy company. natural gas producers. the results of operations and financial condition of equity affiliates. 1993 Formed Tengizchevroil. the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation. whether as a result of new information. jointly owned by Socal and The Texas Company (later became Texaco). The acquired assets provide a targeted. 1947 Acquired Signal Oil Company. changes in fiscal terms or restrictions on scope of company operations. Unless legally required. Words such as “anticipates. uncertainties and other factors. Inc. regulations and litigation. recapitalizations. divestitures. the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies. a major petroleum products marketer in five southeastern states.” “intends. actions of competitors or regulators. the company’s future acquisition or disposition of assets and gains and losses from asset dispositions or impairments.” “budgets” and similar expressions are intended to identify such forward-looking statements.” “projects. Therefore. stronger and more unified presence in the global marketplace. Chevron undertakes no obligation to update publicly any forward-looking statements.S. civil unrest. significant investment or product changes under existing or future environmental statutes. potential delays in the development. changing refining.’s U. 1900 Acquired by the West Coast operations of John D. future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices. Gulf of Mexico. timing of crude oil liftings. construction or start-up of planned projects.” “plans. and the factors set forth under the heading “Risk Factors” on pages 32 through 34 of the company’s 2010 Annual Report on Form 10-K.
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