highlights of operations
Chevron produces crude oil and natural gas in Argentina through our wholly owned subsidiary Chevron Argentina S.R.L.
Chevron Argentina S.R.L. is the eighth-largest producer of oil in the country, with concessions in the Neuquén Basin. Expanded waterflood operations are sustaining oil output at the El Trapial Field, and the company is exploring for unconventional oil and gas resources in the Vaca Muerta Shale.
In 2014, Chevron announced agreements to continue development, through another subsidiary, of shale oil and gas resources at the Loma Campana Field in the Vaca Muerta formation in Neuquén province. Also in 2014, Chevron affiliates signed agreements to join an exploration project for shale oil in the Narambuena Block in the Chihuido de la Sierra Negra concession, which is also in the Vaca Muerta Shale. Both are operated by YPF, an Argentine energy company.
Separately, a Chevron Shared Services Center operates in Buenos Aires. It provides information technology and accounting support services for affiliates in Latin America, the United Kingdom and the United States.
Chevron Argentina supports social investment programs that promote education, health and economic development in the communities where the company operates.
exploration and production
During 2017, net daily production in Argentina averaged 19,000 barrels of crude oil and 27 million cubic feet of natural gas.
Chevron Argentina S.R.L. holds an 85 percent-owned and operated interest in one concession that covers 94,000 net acres (380 sq km). The concession has both conventional production potential and Vaca Muerta Shale potential.
In addition, Chevron holds a 50 percent nonoperated interest in the Loma Campana and Narambuena concessions covering 73,000 net acres (295 sq km) in the thick, laterally extensive, liquids-rich Vaca Muerta Shale.
Nonoperated development activities continued in 2017 on the Loma Campana concession in the Vaca Muerta Shale, with three rigs onsite by the end of the year. Also, 24 horizontal wells were drilled in 2017. The drilling program is expected to continue in 2018.
The company uses waterflood operations to mitigate declines at the operated El Trapial Field and continues to evaluate the potential of the Vaca Muerta Shale. Chevron plans to start a shale appraisal program in late 2018.
Exploration work in the nonoperated Narambuena Block continued in 2017. In November, Chevron Argentina S.R.L. was the successful bidder on the Loma del Molle Norte Block, adjacent to the El Trapial concession.
pipeline in the neuquén basin
Another Chevron affiliate holds a 14 percent interest in Oleoductos del Valle S.A., a pipeline system that transports crude oil from the Neuquén Basin in western Argentina to the Buenos Aires area.
A Chevron Shared Services Center operates in Buenos Aires. The center provides accounting services and information technology support for many of Chevron’s affiliates in Latin America, the United Kingdom and the United States.
in the community
Chevron Argentina partners with local leaders, nongovernmental organizations and other entities to help communities in the areas where we operate. The company supports health, education and economic development programs.
Together with the Ministry of Health in Neuquén province, Chevron sponsors Rolling Smiles, a program that provides free dental care in neighborhoods in Neuquén city. The company has also donated a refrigerated truck to transport medical supplies to remote hospitals in the province.
In Rincón de los Sauces, we worked with municipal authorities to build a water storage facility that provides residents with access to drinking water, and in 2015, we extended our commitment by adding a new water pipeline.
In 2016, Chevron Argentina and the YPF Foundation partnered with the Baylor College of Medicine International Pediatric AIDS Initiative at Texas Children’s Hospital and the Health Ministry of Neuquén province to launch a maternal-child health care program in Añelo.
Chevron Argentina S.R.L. is committed to education. For more than 10 years, we have sponsored Rural School 173 Ruca Quimpen in Huantraico, providing building maintenance, food and fuel.
We are also one of the main supporters of the Instituto Tecnológico de Buenos Aires, where we have developed a scholarship program for petroleum engineering students.
Chevron Argentina partners with Fundación Otras Voces (Other Voices Foundation) in support of the Entrepreneurs in Action program. This initiative provides training and support for women from underprivileged neighborhoods in Neuquén city who have small businesses that offer services such as cooking and sewing.
Also in Neuquén city, we support an initiative that offers free workshops to improve job skills and promote small businesses. The project aims to advance local economic growth and generate employment opportunities.
joining our partners
Chevron Argentina also supports the YPF Foundation, which contributes to programs in education, environment, health care, culture, science and research, alternative energy, and community development. The programs are selected by the foundation, the Neuquén province government and local communities. They have included infrastructure projects such as construction of solid waste and water supply facilities at schools in several provinces and expansion of a convention center.
record of achievement
Chevron began selling automotive fuels in Argentina in the first half of the 20th century and started exploring for oil in the 1980s. After the deregulation of the oil and gas market in 1989, Chevron affiliates expanded exploration, production and marketing operations.
In 1999, Chevron increased its presence in Argentina with the purchase of Petrolera Argentina San Jorge S.A., a company with a history of successful exploration in the Neuquén Basin.
We are a significant partner in the nation’s economy. Oil production in Argentina is an important source of employment and generates revenue for the federal and provincial governments.
Chevron employees demonstrate a strong commitment to high-quality work and safe operations. The Argentina Oil and Gas Institute recognized Chevron in 2016 with its Annual Safety Award for our outstanding safety performance, an award the company also received in 2011.
The Superintendent of Occupational Risks has recognized Chevron Argentina for achieving work environment standards that meet and surpass those required by law.
In 2014, the city of Rincón de los Sauces, near Chevron Argentina’s El Trapial Field, recognized the company for its commitment to improving the quality of life of the city’s citizens.
Tte Gral. Juan Domingo Peron 925
Buenos Aires, Argentina, C1038AAS
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This Website 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 or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,” “opportunities” 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, many of which are beyond the company’s 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. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. 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 important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices; changing refining, marketing and chemicals margins; the company's ability to realize anticipated cost savings and expenditure reductions; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of the company's suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats and terrorist acts, crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries, or other natural or human causes beyond its control; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; the impact of the 2017 U.S. tax legislation on the company's future results; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company's ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 19 through 22 of Chevron’s 2017 Annual Report on Form 10-K. Other unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements.