Exploration and Production
In June 2010, Chevron signed a Heads of Agreement with Rosneft, an oil and gas company, covering the exploration, development, production and marketing of hydrocarbons from the Shatsky Ridge Block in the Black Sea.
Caspian Pipeline Consortium
Chevron funded 30 percent of the initial construction costs of the Caspian Pipeline Consortium pipeline—an investment of about $800 million. Chevron plans to invest another $810 million as part of a $5.4 billion expansion approved by CPC shareholders in December 2010.
In 2010, the pipeline transported an average of 743,000 barrels of crude oil per day, including 136,000 barrels per day from Russia. The remaining 607,000 barrels per day was transported from Kazakhstan.
Plans call for increasing pipeline capacity to 1.4 million barrels per day. The $5.4 billion project is planned for implementation in three phases, with capacity increasing until reaching full capacity in 2016. Chevron holds a 15 percent interest in the CPC pipeline.
Chevron also is a 50 percent owner of Tengizchevroil, 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 a 20 percent nonoperated working 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.
In December 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 has established several licensing partnerships for the company's technology in Russia through Chevron Lummus Global, 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 2012, is designed with an annual processing capacity of 3 million metric tons of vacuum gas oil, which is used in making gasoline or lubricants. 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. Startup is expected by late 2011 or early 2012. The technology behind our ISODEWAXING catalyst was licensed to produce base oils at the same refinery. The base oils facilities are expected to start operation in 2013.
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. Startup is planned for 2012.
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 currently 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 technical support to our customers in Russia through Advanced Refining Technologies, a joint venture with Grace-Davison.
Updated: March 2011
Cautionary Statement