Chevron Reports All Employees Safe, Begins Product Imports at Pascagoula Refinery
SAN RAMON, Calif., Sep. 19, 2005 -- Chevron Corporation (NYSE: CVX) said today that it has repaired a hurricane-damaged product berth at its Pascagoula, Miss., refinery and is now transporting refined product from Pascagoula to its Collins, Miss., terminal and to the Plantation Pipeline for delivery to terminals and markets in the southeastern United States.
The company received a cargo of 11.5 million gallons of regular grade gasoline on Friday, Sept. 16, from a European supplier. Chevron is prepared to import additional shipments of gasoline, diesel and jet fuel as needed to supply customers.
The company also confirmed that it has accounted for all of its approximately 3,700 employees in the areas affected by Hurricane Katrina.
"Chevron is grateful that all of its employees in the Gulf Coast region are safe and secure," Chevron Chairman and CEO David J. O'Reilly said. "We also are pleased that our business resumption efforts are progressing well. The ability to import product to Pascagoula represents significant progress in our efforts to improve the fuel supply situation and meet the needs of consumers until we are able to restart the refinery."
Chevron has returned to 56 percent of its pre-Katrina production level in the Gulf of Mexico. The company continues to assess the status and condition of all of its upstream facilities in the Gulf region. In addition, Chevron continues to monitor new weather systems affecting the Gulf of Mexico and has begun evacuation of personnel from the Gulf of Mexico ahead of Tropical Storm Rita, which is standard operating procedure.
As previously reported, Chevron's major deepwater oil and natural gas production facilities – Genesis, Typhoon and Petronius – were not significantly damaged. Genesis and Typhoon have been restaffed and are producing oil and natural gas. Petronius is ready to resume production once export pipeline infrastructure is available.
"We are continuing to work safely to bring more production online as quickly as possible," said O'Reilly. "I am very proud of our organization and the commitment and determination our people have shown toward resuming operations under very challenging circumstances."
Most of the company's oil and natural gas production facilities on the Gulf of Mexico shelf were not significantly damaged. A key factor in getting all Gulf of Mexico fields back on production is the integrity of the oil and gas pipeline systems and onshore terminals and plants, especially gas processing plants serving gas transmission pipelines. The company's Empire and Fourchon pipeline terminals are nonoperational at this time.
Temporary offices for New Orleans-based employees are being established in Louisiana and Texas. The company's Gulf of Mexico office in New Orleans was moved temporarily to Lafayette, La., where the company continues to operate an Incident Command Center and coordinate response activities with federal, state and local authorities.
Chevron continues to assess damage to the Pascagoula Refinery. The refinery is expected to commence the start-up process for a single train (a crude unit and associated conversion facilities) in mid-October with full operation in mid-November. Progress to date includes:
- More than 1,000 employees and contractors are now working in the refinery, and full electrical power has been restored.
- A breached section of the dike surrounding the refinery was repaired the week of Sept 5.
- The return of industrial water service was completed the week of Sept. 12.
- With one refined product berth repaired, the focus now is on damage assessment and repair plans for crude oil berths.
- On Sept. 12, Chevron opened a temporary housing facility within a few miles of the Pascagoula Refinery. It provides enough beds for up to 1,100 refinery employees and their families who were displaced by Hurricane Katrina, as well as front-line relief workers and contractors helping with a safe start-up of the refinery.
The Environmental Protection Agency's extension last week of the fuel specification waiver is enabling the supply of gasoline to markets on the East Coast.
Chevron Oronite Company Update
Damage to Chevron Oronite's Oak Point lubricant and fuel additive manufacturing facility in Belle Chasse, La., appears to be moderate compared with the surrounding areas of New Orleans. The plant is temporarily shut down to make necessary repairs and to ensure a safe work environment. Truck and rail transportation remain the critical components for receiving raw materials and shipping product. Limited blending and shipping operations are expected to begin the week of Sept. 19, dependent upon road access to the facility.
Safety and the Environment
Our priority continues to be the safe and incident-free resumption of operations. Chevron also is focused on minimizing environmental impacts associated with damaged facilities as well as debris removal from critical infrastructure locations. The company has aggressive oil recovery operations under way at its Empire and Fourchon pipeline terminals. Teams of specially trained emergency response personnel are working to contain and clean up spill areas, the plans for which are occurring under the approval of the appropriate federal and state environmental agencies.
In addition to the $5 million commitment to Hurricane Katrina relief efforts ($3 million to the American Red Cross and $2 million to be provided directly to relief organizations working in communities along the Gulf Coast), Chevron announced that it will match employee contributions to the Chevron Humanitarian Relief Fund. This fund will channel money directly to Chevron employees affected by the hurricane. Chevron will match employee contributions made to the Humanitarian Relief Fund on a one-to-one basis from Aug. 29 through Nov. 30, 2005, with no cap on the matching funds that the company will provide.
The company already has made significant local community relief support funding available, including:
- a $150,000 contribution for water delivery to impacted Gulf Coast communities, working through America's Second Harvest;
- a $50,000 contribution to the Coast Guard Foundation Disaster Relief Fund to provide food, water, clothing and emergency housing for the 2,200 active duty Coast Guard personnel and their families affected by the disaster;
- an aggregate of $450,000 in contributions to school districts in Pascagoula, Miss.; Lafayette, La.; and Houston, Tx., to provide educational, social and medical support for evacuated students;
- an aggregate of $550,000 in contributions to general relief agencies such as the United Way for Plaquemines Parish, La., and Jackson County, Miss., as well as to Spindletop Charities in Houston, Tx.;
- $250,000 to the Bacot/Jolly P. McCarty Foundation in Mississippi for general recovery efforts and volunteer relief support.
There are also multiple, ongoing employee relief efforts under way including:
- Temporary housing facilities for employees and their families were opened near the Pascagoula Refinery and the Oak Point Oronite plant. The company also is establishing modular temporary housing complexes for employees and their families near Lafayette, La., and Picayune, Miss.
- Employees have held fund-raising drives, opened their homes to those needing a place to stay and participated in community drives with local agencies to collect food, clothing and other basic supplies.
- Chevron's mobile barbecue, staffed with employee volunteers, served approximately 20,000 meals to evacuees, security staff and volunteers at the Houston Astrodome during the week of Sept. 12.
Chevron will continue to work with government and nongovernmental organizations and social service agencies to aid in relief and rebuilding efforts.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release of Chevron Corporation contains forward-looking statements relating to Chevron's operations that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as "anticipates," "expects," " intends," "plans," "targets," " projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Among the factors that could cause actual results to differ materially are unknown or unexpected problems in the resumption of operations affected by Hurricane Katrina, crude oil and natural gas prices; refining margins and marketing margins; chemicals prices and competitive conditions affecting supply and demand for aromatics, olefins and additives products; actions of competitors; inability or failure of the company's joint-venture partners to fund their share of operations and development activities; potential failure to achieve expected net production from existing and future oil and gas development projects; potential disruption or interruption of the company's net production or manufacturing facilities due to war, accidents, political events or severe weather; potential liability for remedial actions under existing or future environmental regulations and litigation; significant investment or product changes under existing or future environmental regulations (including, particularly, regulations and litigation dealing with gasoline composition and characteristics); and potential liability resulting from pending or future litigation. In addition, such statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.
Updated: September 2005