Exploration and Production
Chevron's long record of developing crude oil and natural gas in the Middle East dates back to our earliest discovery, in Bahrain in 1932. Kuwait's Burgan Field, the world's second-largest onshore oil field, was discovered in 1938 by Gulf Oil, which later merged with Chevron. Following nationalization of this field by the government of Kuwait, Chevron subsidiaries continued to provide assistance to the Kuwait Oil Company via technical-service agreements through 2008.
The Chevron-led consortium competing to develop Kuwait's northern fields ended in May 2010. However, Chevron has an extensive history in the region and continues to be active in Kuwait, and we are one of two partners in the onshore Partitioned Zone (PZ) between Kuwait and Saudi Arabia.
Maximizing Resources in the Partitioned Zone
Companies that later became part of Chevron have been producing oil on behalf of Saudi Arabia in the onshore PZ since 1949. Chevron has an agreement with Saudi Arabia to operate the kingdom's 50 percent interest in the hydrocarbon resources of the onshore PZ. The agreement was extended and amended in 2009; it now expires in 2039.
Development drilling, well workovers and facility enhancement programs are scheduled to continue through 2015 and are expected to partially offset field declines.
In 2009, steam injection began at the Large-Scale Steamflood Pilot (LSP) Project for the carbonate First Eocene reservoir at the Wafra Field. Steamflooding involves injecting steam into heavy oil reservoirs to heat the crude oil underground, which reduces its viscosity and allows its extraction through wells. This project was preceded by steam stimulation of some wells, followed several years later by a small-scale test. The entire development project is designed to determine the technical and economic viability of thermal-recovery projects in the Eocene reservoirs of the Wafra Field. In 2014, Chevron continued the steam injection pilot project in the target reservoir to better assess total recoverable volumes.
Development planning also continued on the follow-up to the LSP Project. The Wafra Steamflood Stage 1 Project, a full-field steamflood application in the Wafra Field First Eocene carbonate reservoir, has a planned design capacity of 80,000 barrels of crude oil per day. Front-end engineering and design work is expected to begin in the third quarter of 2015.
Work also continued on expanding the LSP Project to the Second Eocene carbonate reservoir. A final investment decision is planned for 2016.
A carbonate reservoir is an oil or gas trap formed in reefs, dolomite and certain types of limestone. Typically, carbonate reservoirs are highly fractured and not conducive to steamflooding on a large scale. However, the carbonate Eocene reservoirs at Wafra have properties that are promising for successful steamflooding.
The Central Gas Utilization Project is a facility construction project intended to increase the use of natural gas while eliminating natural gas flaring at the Wafra Field. As of early 2015, the development plan was being re-evaluated.
In July 2014, we began a 3-D seismic survey covering the entire onshore Partitioned Zone. It is one of the largest land seismic programs ever undertaken, covering 1.1 million acres (4,600 sq km).
Chevron licenses refining technology and supplies catalysts to Kuwait National Petroleum Co. refineries through our affiliates Chevron Lummus Global LLC and Advanced Refining Technologies LLC, respectively. Advance Refining Technologies has a minority interest in the Kuwait Catalyst Company.
Saudi Arabian Chevron (SAC) operates a storage and marine export facility at Mina Saud in the PZ.
In 2014, we marked our 12th consecutive year with no reductions or delays in scheduled tanker loading, no lost-time incidents and no spills attributable to SAC operations. A total of 60 tankers were loaded at the company's crude oil shipping terminals, handling a volume of nearly 35 million barrels of Ratawi and Eocene crude.
Chevron markets Caltex®-branded lubricants and coolants in Kuwait through authorized distributors.
Updated: May 2015