China

China

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Exploration and Production

Chevron has interests in four operated and three nonoperated production-sharing contracts in China. In 2013, net average daily production was 19,000 barrels of crude oil and condensate and 6 million cubic feet of natural gas.

Major Development at Chuandongbei

Chevron operates the 487,000-acre (1,969-sq-km) Chuandongbei natural gas area in the onshore Sichuan Basin. We have a 49 percent interest in the $6.4 billion project. Construction is under way on the first of two sour-gas processing plants connected to five natural gas fields. The combined total outlet capacity of the plants is expected to be 558 million cubic feet per day. Sour gas is natural gas containing hydrogen sulfide. It typically is processed into gas that meets customer specifications, natural gas liquids or elemental sulfur. Elemental sulfur can be used in fertilizer and other products.

Working in the South China Sea

Chevron owns and operates the shallow-water Blocks 15/10 and 15/28 in the South China Sea, which cover approximately 1.4 million acres (5,782 sq km). In 2013, two 3-D seismic surveys were conducted in these blocks. The results are being studied.

Chevron also has a 32.7 percent nonoperated working interest in offshore Block 16/19 in the Pearl River Mouth Basin of the South China Sea.

Strong Partnerships in Bohai Bay

In Bohai Bay, the company holds a 16.2 percent nonoperated working interest in Block 11/19. Replacement of a floating production, storage and offloading vessel was completed in July 2013.

Also in Bohai Bay, Chevron has a 24.5 percent working interest in the QHD 32-6 oil field, which was the first development operated by China National Offshore Oil Corporation that involved foreign participation. A new project to develop field resources includes 101 new wells tying back to four platforms.

Marketing and Retail

There are about 70 Caltex® service stations in China, including in the Hong Kong and Macau Special Administrative regions. We have expanded our network of retail outlets, mainly in Guangdong Province. These stations, operated by Chevron Hong Kong Limited and Caltex South China Investment Ltd., are equipped with retail convenience stores.

Our Caltex lubricants business has sales, marketing, manufacturing and distribution operations throughout the country, including in Beijing, Shanghai, Guangzhou, Chengdu, Tianjin and Hong Kong. We also sell and distribute our products in central China through a joint venture in Shanghai.

Caltex Havoline® and Delo® engine oils and coolants are among the best-selling lubricants and specialty products in their class and have been widely used by consumer, commercial and industrial customers as well as original equipment manufacturers.

Chevron Global Aviation is one of the jet fuel suppliers at Hong Kong International Airport. We also sell jet fuel to airlines that use Macau International Airport.

Chemicals

Chevron Phillips Chemical Company LLC (CPChem) is 50 percent owned by Chevron.

CPChem has a 40 percent interest in Shanghai Golden Phillips Petrochemical Company Ltd., a high-density polyethylene (HDPE) plant in Jinshanwei, near Shanghai. HDPE is used in a wide range of applications, including pipe, gasoline containers and tanks, and soap and detergent bottles.

In addition, CPChem sells styrene monomer, alpha olefins, specialty chemicals, Ryton® PPS and K-Resin® SBC. Styrene monomer is a basic building block of the plastics industry and is used in a variety of products, including tires and carpeting. Ryton® PPS is used in, among other things, under-the-hood automotive connectors, residential water meters and irrigation valves, and energy storage and lithium battery components. K-Resin® SBC has been used for more than 40 years in items ranging from packaging and toys to medical components and displays. Ryton® and K-Resin® are registered trademarks of CPChem.

Our subsidiary Chevron Oronite (Beijing) International Trading Co., Ltd. maintains an office in Beijing to coordinate the sale of lubricants and fuel additives to national and international oil companies as well as to local lubricants blenders. The company manages products for marine, automotive, industrial and specialty uses.

Oronite’s Singapore additive plant—the largest on the continent—positions us well to meet the growth in product demand expected in China. Oronite is increasing its analytical testing capabilities in China as well as its sales and support staff.

Updated: May 2014

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