Chevron’s history in the Kingdom of Saudi Arabia began in the early 1930s, when Standard Oil of California—later Chevron—began exploring in the kingdom’s Eastern Province. In 1936, The Texas Co.—later Texaco—joined as a partner in the California Arabian Standard Oil Company (CASOC), which in 1944 became the Arabian American Oil Company, or Aramco.
In 1938, CASOC made Saudi Arabia’s first commercial oil discovery at Dammam Dome No. 7. Before it was 50 days old, the well had produced 100,000 barrels of oil. Continued exploration in the kingdom led to the discovery of 52 oil fields, including Ghawar in 1948. Ghawar is still the world’s largest oil field in terms of production and remaining recoverable reserves.
Additional partners joined Aramco in 1948. In 1973, Aramco started selling ownership to the government of Saudi Arabia. By 1989, the process of transferring ownership of Aramco to the Saudi government was complete, marking the beginning of Saudi Aramco.
Texaco, which merged with Chevron in 2001, began operating in the onshore Partitioned Zone (PZ) between Saudi Arabia and Kuwait when it acquired Getty Oil Co. in 1984. Getty had begun operating in 1949 under an agreement with the kingdom. In late 2004, total production reached 3 billion barrels.
In 2000, Chevron Phillips Chemical Company LLC (CPChem) and its affiliates and private Saudi investors opened Saudi Chevron Phillips Company. The venture’s petrochemical plant in Al-Jubail is the kingdom’s first privately financed basic petrochemical enterprise. A second company, Jubail Chevron Phillips Company, operates another petrochemical facility adjacent to and integrated with the first plant.
Saudi Polymers Company, a joint venture that includes Arabian Chevron Phillips Petrochemical Company Limited, began commercial production in Al-Jubail in 2012. Since then, the operation has created approximately 950 jobs, a high percentage of which are held by Saudi nationals.
The Chevron AlBakri Lubricants Company, a joint venture headquartered in Jeddah, was established in 2004.
Health, Environment and Safety
The Kingdom of Saudi Arabia’s Royal Commission for Jubail and Yanbu honored Saudi Chevron Phillips Company and Jubail Chevron Phillips Company for environmental performance excellence for five consecutive years, from 2005 to 2009.
Chevron is committed to improving the lives of all its employees and their communities. For example, Saudi Arabian Chevron’s hospital and field clinic for PZ operations recorded some 18,000 visits by employees, their families and other community members in 2013.
Creating a safe work environment in the PZ is a top priority. At the end of 2013, employees and contractors of Chevron’s subsidiary at Mina Saud and Wafra logged more than 7 million work-hours without a day-away-from-work incident and drove 20 million miles without a major crash.
Texaco was the first major oil company to enter a downstream relationship with the kingdom, and today Chevron continues to be an important purchaser of Saudi crude oil. Chevron has an agreement to operate the kingdom’s 50 percent interest in the hydrocarbon resources of the onshore area of the PZ. Chevron pays a royalty and other taxes on that production.
Chevron is implementing competency and organizational development strategies with the objective of placing the right Saudis in the right jobs at the right time.
The company provides resources and education, training and development opportunities for Saudi employees at all levels. Nearly 85 percent of Saudi Arabian Chevron’s 966 employees are Saudi nationals, and many hold positions at the highest levels of management.
Cutting-edge applications of the industry’s latest processes flow across Chevron’s worldwide operations, linking, for example, national employees in the PZ with specialists in Houston.
Employee development programs focus on improving job performance and leadership skills. In 2013, employees averaged more than 100 hours—more than two workweeks—of formal training. Advanced workshops, rotational assignments, mentoring and feedback sessions further develop future leaders.
Updated: May 2014