Construction of the Caspian Pipeline Consortium (CPC) pipeline began in 1999, and the first tanker was loaded with Tengiz oil at the CPC's terminal at Novorossiysk in 2001.
Chevron products have been sold in Russia since the late 1990s and have increased their market share significantly since then. In 2004, Chevron created a subsidiary to import and distribute Texaco-branded products in Russia.
Our partnerships in Russia have been marked by several licensing milestones:
- In 1994, Chevron sold its Isocracking process license to Kirishi Nefteorgsyntez (Surgutneftegaz).
- In 2000, Chevron made its Isodewaxing technology, commercial expertise and catalysts available to LUKOIL-Volgogradneftepererabotka.
- Chevron Lummus Global signed licensing contracts with the Ryazan Refinery in 2000 and with Tatneft and Rosneft in 2006 and signed two more contracts with Rosneft in 2007 and 2008.
Economy
During the initial construction phase of the CPC pipeline, Chevron and its partners created more than 6,000 construction jobs, a majority of which were held by local workers and specialists. In addition, the CPC has created approximately 1,500 full-time jobs to support pipeline operations.
The implementation of the Tengizchevroil (TCO) project has helped strengthen the economy of Russia. TCO's direct expenditures in Russia totaled $558 million in 2008. Since 1993, the direct expenditures of TCO in Russia have totaled more than $3.6 billion. Studies conducted by the Russian Academy of Sciences show that during the life of the project, TCO activity is expected to increase Russia's GNP by $28 billion, through both direct and indirect expenditures. TCO operations are expected to bring an additional $10 billion in revenue into the federal, regional and local budgets, both directly and indirectly.
In 2007, TCO resumed crude transportation by railroad. Practically all of the crude oil is delivered through Russian territory. As a result, Russia received more than $66 million in railway tariffs in 2008.
All export volumes of liquefied gas from TCO are transported along Russian railroads. In 2008, Russia received more than $73 million in railway tariffs and rail car leases for the shipment of TCO liquefied gas. In 2003, TCO began operating a sulfur granulating facility. This product is exported to the Mediterranean market through Russian territory. About $30 million has been paid for sulfur shipments in 2008.
Chevron has established partnerships with Russian institutions, including the National Scientific Research Institute of Hydrocarbon Raw Materials – VNIIUS (Kazan), Moscow State University, Gubkin State Oil and Gas University, VNIGNI, VNIIGAZ, and others.
In 2006, Chevron and the Russian Academy of Sciences signed a scientific and technological cooperation agreement. In 2007, Chevron supported research work at the academy in areas ranging from catalyst characterization to ceramic membranes.
On behalf of Chevron's Energy Technology Company, our Moscow office established semiannual symposiums and joint research projects with the Russian Academy of Science. Several of these projects are ongoing, and we continue to seek more opportunities.
Updated: March 2009