Caspian Pipeline Consortium
Chevron funded 30 percent of the initial construction costs of the Caspian Pipeline Consortium (CPC) pipeline—an investment of about $800 million. Chevron plans to invest another $810 million as part of a major expansion that began construction in 2011.
In 2012, the CPC pipeline transported an average of 657,000 barrels of crude oil per day, including 67,000 barrels per day from Russia. The remaining 590,000 barrels per day were transported from Kazakhstan.
The $5.4 billion project is planned for implementation in three phases, incrementally increasing pipeline capacity to 1.4 million barrels per day in 2016. The first increase of 400,000 barrels per day is expected in 2014. Chevron holds a 15 percent interest in the CPC pipeline.
Chevron also is a 50 percent owner of Tengizchevroil LLP, which operates the Tengiz Field in Kazakhstan. In addition to Tengiz crude oil, the CPC pipeline transports crude oil from the northeast shore of the Caspian Sea and other areas of Russia and Kazakhstan, including the Karachaganak Field in Kazakhstan, in which Chevron holds an 18 percent nonoperated working interest.
Marketing and Retail
Chevron Oronite has a growing business in Russia, where we supply additives for lubricants. Our subsidiary has developed strong partnerships with several Russian oil companies, including LUKOIL, OAO Gazprom Neft, TNK-BP, Rosneft and other producers of lubricating oils. Chevron Oronite also supports LUKOIL Marine around the world.
In 2010, Chevron began working with Starlube to distribute lubricants in Russia. Our other distributors are Petro-Lube, based in Moscow, and MCM World Lubricants, in Vladivostok. Chevron also sells marine lubricants through a distribution partnership with Gazpromneft Lubricants.
Chevron has established several licensing partnerships for the company's technology in Russia through Chevron Lummus Global LLC, our joint venture with CBI/Lummus Technology.
Licensing Chevron's ISOCRACKING® catalyst, Kirishi Nefteorgsyntez (Surgutneftegaz) is building one of the world's largest ISOCRACKING units to convert hydrocarbons into more valuable products. The facility, expected to be commissioned in 2013, is designed with an annual processing capacity of 3 million metric tons of vacuum gas oil, which is used to make high-value transportation fuels. It will enable production of high-quality fuels for Russian and foreign markets and produce diesel fuel that complies with Euro 5 European emission standards.
Chevron makes its ISODEWAXING® catalysts, commercial expertise and technology available to LUKOIL-Volgogradneftepererabotka. This process involves using the raw wax from base oil manufacturing to produce high-quality lubricants. The ISODEWAXING unit was successfully deployed in Volgograd. In 2008, Chevron Lummus Global supplied fresh replacement catalyst and completed a pilot plant study for unit extension.
Chevron Lummus Global has a contract with the Ryazan Refinery that licensed the refinery to use our hydrodesulfurization process. The process removes sulfur from vacuum gas oils. The refinery has an annual capacity of 2.5 million metric tons. In 2008, Chevron Lummus Global also performed a study to improve refinery operations.
The energy company Tatneft has licensed our ISOCRACKING technology for the Taneco Nizhnekamsk Refinery, which is under construction. This refinery will manufacture high-quality diesel and jet fuel. The technology behind our ISODEWAXING catalyst was licensed to produce base oils at the same refinery.
Chevron Lummus Global has a sales contract with Rosneft's Tuapse refinery for a hydrocracker and diesel hydrotreater license. The contract also covers a future supply of catalysts for the Tuapse Refinery. This refinery will produce jet and diesel fuels.
Rosneft also has a license and catalyst supply contract for an ISOCRACKING unit at its existing Komsomolsk Refinery. This plant will convert vacuum gas oil into low-sulfur diesel fuel. This unit is under construction.
In 2008, Chevron Lummus Global signed agreements with Rosneft for the licensing, design and catalyst for a new hydrocracker at the Achinsk Refinery.
In 2009, Chevron Lummus Global signed agreements with Rosneft for supplying the license, design and catalyst for a new ISOCRACKING unit in the Novokuibyshevsk Oil Refinery and for a new base oils plant in the Novokuibyshevsk lubricants plant. Unconverted oil from the Isocracker will be processed to produce high-quality base lubricants.
Chevron also sells hydrotreating catalysts and provides technical support to our customers in Russia through Advanced Refining Technologies, a joint venture with Grace-Davison.
In 2011, Chevron Lummus Global signed a licensing contract with Yaroslavl Slavneft Refinery to produce 100,000 tons of lubricants per year.
Updated: April 2012
Cautionary Statement