Exploration and Production
Chevron, in partnership with Colombia's national oil company Ecopetrol, operates the giant offshore Chuchupa Field as well as the onshore Ballena and Riohacha natural gas fields in the Guajira Province of northern Colombia. In 2008, Chevron's total average daily production in Colombia was 567 million cubic feet of gas (209 million net).
Chevron operates and develops the fields as part of the Guajira Association contract. In exchange, Chevron receives 43 percent of the production for the remaining life of each field and a variable production volume from a fixed-fee agreement based on prior Chuchupa capital contributions.
In 2008, natural-gas compression facilities were built in Ballena to mitigate the decline in reservoir pressure. The facilities were expected to be put into service in second quarter 2009.
We also plan to increase natural gas exports to Venezuela in 2009 using a natural gas pipeline that went into service in late 2007.
Marketing and Retail
Chevron operates a nationwide network of 324 service stations under the Texaco brand. We have a 17 percent market share in automotive fuels, a 28 percent market share in aviation fuel and 18 percent market share in lubricants. Chevron also has interests in 11 fuel terminals in Colombia.
Under the Texaco name, the company markets a full line of branded merchandise – including Texaco with Techron® gasoline, diesel fuel, and Havoline® and Ursa® products via service stations, sales agents and distributors throughout Colombia. Through a joint venture, Chevron supplies fuel to all of Colombia's major airports.
On the country's northern coast, Chevron Phillips Chemical Company LLC, which is half-owned by Chevron, has a polystyrene plant in the port city of Cartagena.
Chevron has been a leader in developing the natural gas market in Colombia. In 2007, Chevron and Ecopetrol signed a long-term purchase and sales agreement with Venezuela's national gas company. In January 2008, an estimated average of 90 million cubic feet of gas per day began flowing from Colombia to Venezuela. The deal paves the way for another agreement between Venezuela and Ecopetrol for future deliveries.
Updated: March 2009