Exploration and Production
Exploration and delineation activities in the Pyakutinsky and Aikhettinsky license areas, located in the Yamal-Nenets region of western Siberia, were completed in 2008. The results of the testing and technical evaluation did not demonstrate the presence of commercial quantities of hydrocarbons. Chevron elected not to exercise its option to acquire a 49 percent share in Northern Taiga Neftegaz LLC, holder of those licenses.
Chevron funded 30 percent of the initial construction costs of the Caspian Pipeline Consortium (CPC) pipeline – an investment of about $800 million. In all, the CPC invested almost $2.7 billion to construct and operate the 935-mile (1,505-km) pipeline that runs from the Tengiz oil field in western Kazakhstan to the Black Sea marine terminal Novorossiysk-2 in Russia.
During 2008, the pipeline transported an average of 675,000 barrels of crude oil per day, including 557,000 barrels per day from the Caspian region and 118,000 barrels per day from Russia. Chevron holds a 15 percent interest in the CPC.
Chevron also is a 50 percent owner of Tengizchevroil, which operates the Tengiz Field in Kazakhstan. In addition to Tengiz crude oil, the 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 a 20 percent interest.
Marketing and Retail
Chevron Oronite has a growing business in Russia, supplying additives for lubricants. Our subsidiary has developed strong partnerships with several Russian oil companies, including LUKOIL, OAO Gazprom Neft, TNK-BP and other producers of lubricating oils.
Along with Chevron Lubricants, the Chevron and Texaco brands continue to significantly increase their market share in Russia. Our lubricants subsidiary, Chevron Lubricants CIS, reorganized its operations in 2007.
Chevron has established several strong partnerships licensing our technology in Russia.
Licensing Chevron's Isocracking® process, Kirishi Nefteorgsyntez (Surgutneftegaz) is building the world's largest Isocracking unit. Isocracking is a process that converts hydrocarbons into more valuable products. The facility, expected to be commissioned in 2009, is designed with an annual processing capacity of 3 million metric tons of vacuum gas oil. It will enable production of high-quality fuels for both Russian and foreign markets. In 2008, Chevron Lummus Global supplied fresh replacement catalyst and began a study examining unit expansion.
Chevron makes its Isodewaxing® technology, commercial expertise and catalysts available to LUKOIL-Volgogradneftepererabotka. This process involves using the raw wax from base-oil manufacturing to produce high-quality lubricants. The Isodewaxing unit is successfully deployed in Volgograd. In 2008, Chevron Lummus Global provided a new supply of improved Isodewaxing catalyst for the Volgograd operation.
Chevron Lummus Global has a contract with the Ryazan Refinery that licensed the plant to use our hydrodesulfurization process. The process removes sulfur from natural gas and refined products. The plant has an annual capacity of 2.5 million metric tons. In 2008, Chevron Lummus Global also performed a study to improve operations.
Tatneft has licensed our Isocracking technology for the Nizhnekamsk refinery, which is under construction. This plant will process vacuum gas oil and heavy coker gas oil into high-quality diesel and jet fuel. Startup is expected by 2011.
Chevron Lummus Global has a sales contract with Rosneft for a hydrocracker and diesel hydrotreater license. The contract also covers a future supply of catalysts for the Tuapse refinery. This plant will process vacuum gas oil and atmospheric gas oil into jet and diesel fuels of superior quality. Startup is planned for 2012.
Rosneft also has a license and catalyst supply contract for its Komsomolsk refinery. This plant will convert vacuum gas oil into low-sulfur diesel fuel.
In 2008, Chevron Lummus Global signed agreements with Rosneft for the licensing, design and catalyst for a new hydrocracker at the Achinsk refinery.
Updated: March 2009