highlights of operations
Chevron has a wide range of operations in China from Upstream to Downstream and Chemicals. Through our subsidiaries Unocal East China Sea, Ltd. (UECSL), and Chevron China Energy Company Pte. Ltd. (CCEC), Chevron conducts our Upstream operations in petroleum and natural gas exploration.
UECSL has a contract with China National Petroleum Corporation (CNPC) for natural gas development and production in Chuandongbei Block in the Sichuan Basin in southwestern China. CCEC works with partners to develop offshore energy resources in the South China Sea and in Bohai Bay.
Operating under Chevron (China) Investment Co., Ltd and Chevron Hong Kong Limited, our Chevron® and Caltex® brands have become an established marketer of lubricants and fuels products in China.
We contribute to the development of people and technology and we support social and educational programs in the communities where we work.
exploration and production
Chevron has participating interests in three production-sharing contracts (PSCs) in China.
In 2016, UECSL announced first gas from the Chuandongbei Gas Project in the onshore Sichuan Basin. The project covers an area of about 300 square kilometers in Sichuan province and Chongqing municipality. The gas plant has three gas processing trains. Net daily production in 2021 averaged 104 million cubic feet of natural gas. In October 2019, UECSL safely and smoothly transferred the operatorship to PetroChina but keeps its 49 percent participating interests in the project. In 2021 the project’s net daily production averaged 104 million cubic feet of natural gas.
South China Sea and Bohai Bay
In the South China Sea, the company has a 32.7 percent participating interest in offshore Block 16/19, with three crude oil fields located in the Pearl River Mouth Basin. In Bohai Bay, the company holds a 24.5 percent participating interest in Block QHD 32-6, which was the first development operated by China National Offshore Oil Corporation (CNOOC) that involved foreign participation.
In 2021, net average daily production from these offshore PSCs was 12,000 barrels of crude oil.
marketing and retail
There are more than 60 Caltex® service stations in China, including in the Hong Kong and Macau special administrative regions. We have expanded our network of retail outlets, mainly in Guangdong province. These stations operated or licensed by Chevron are equipped with retail convenience stores.
Our Chevron lubricants business has sales, marketing, manufacturing and distribution operations throughout the country, including offices in Beijing, Shanghai, Guangzhou, Chengdu, Hong Kong and a plant in Tianjin. We also produce, sell and distribute our products in central China through a joint venture in Shanghai – Shanghai Gaoqiao Caltex Lubricating Oil Company Limited.
Chevron markets Havoline® and Delo® engine oils and coolants under both the Chevron and Caltex brands, which have been widely used by consumer, commercial and industrial customers as well as original equipment manufacturers.
Chevron Global Aviation is one of the jet fuel suppliers at Hong Kong International Airport. We also sell jet fuel to airlines that use Macau International Airport.
Our subsidiary Chevron (China) Chemicals Co., Ltd., a legal entity incorporated in Ningbo, along with its sales offices in Beijing and Shanghai is coordinating the sale of Oronite lubricant additives, fuel additives and specialty chemicals to national and international oil companies as well as to local lubricants blenders. The company manages products for marine, automotive, industrial and specialty uses.
Oronite’s Singapore additive plant – the largest in the Asia-Pacific region – well positions us to meet the near-term growth in product demand expected in China. In addition, Oronite has built a lubricant additive blending and shipping facility in Ningbo, China which began operations in 2021. It will further strengthen our supply capabilities in the Chinese market. The company also continues to expand its analytical and field-testing capabilities in China at a technology center in Shanghai.
in the community
Earning the respect of the communities where we work is vital to our goal of being admired for our people, partnership and performance. Chevron supports educational, environmental, health and other social programs in China and provides grants for non-profit organizations that meet local needs.
improving education and training
Chevron supports programs that benefit underprivileged children and families. In Hong Kong, we partnered with the Boys’ and Girls’’ Clubs Association of Hong Kong to launch the Fuel Your School program between 2015 and 2020. This program provided additional learning resources for underprivileged children in five primary and secondary schools.
Starting in 2021, we have launched a new program called Caltex Robot Engineering Lab. Each year, approximately 100 students from underprivileged families will learn from university students and professional tutors how to build and program robots. Students with the most outstanding performances may get a chance to join a team of university students and participate in open competitions.
In 2020, Chevron donated RMB 2 million (about US$300,000) to support the COVID-19 relief efforts in China. The grant was used to purchase life-support machines for deployment to hospitals in Wuhan and other cities in Hubei Province to support patients in critical conditions.
In 2013, Chevron provided an emergency grant to support almost 2 million people who were affected by an earthquake in Ya’an Prefecture, Sichuan province. The funding helped pay for hygiene kits, day care centers, and programs that address psychological and social needs following a natural disaster.
protecting the environment
Serious water shortages affect people living in China’s arid western region. Chevron partnered with the China Women’s Development Foundation on a project that creates water cellars and provides drinking water for farmers. In the past years, Chevron donations have benefited more than 500 families in western China.
The Chuandongbei Project has established a dedicated community emergency response team to ensure the safety and protection of nearby communities.
Working closely with local government and communities, the project also has established muster points where people can gather in an emergency and has conducted safety awareness training sessions.
improving public health and safety
In response to the hazards that pedestrians, particularly children, face on rural roads, Chevron supported the Asian Injury Prevention Foundation in launching the Walk Wise Project in Kaizhou District, Chongqing municipality, in 2011. The project taught road safety courses to nearly 1,000 primary school students. By 2020, the program expanded to cover about 159,000 students in 102 schools. Started in 2013, Chevron Hong Kong holds an annual social investment program – Week of Caring for our colleagues. During that week, employees will get to participate in various volunteering or social caring events such as clothing drive/donations, food preparation for the elderly and homeless, volunteering at animal shelters, and beach clean-up.
record of achievement
Chevron first entered China as Pacific Coast Oil Company in 1904, when it began selling kerosene for lamps and home heating. In the 1920s, we opened Texaco service stations and sales outlets in major Chinese cities. During the late 1930s, we began marketing petroleum products under the Caltex®brand.
In 1979, Chevron was one of the first Western companies to re-enter China. Chevron became a partner in one of China’s first offshore oil production projects, in the Pearl River Mouth Basin of the South China Sea. Discovered in 1985, the Huizhou oil fields began production in 1990.
In 1998, Texaco, who later merged into Chevron, and CNOOC signed the Petroleum Contract for the QHD32-6 Field in Bohai Bay, making Chevron the nonoperating partner and CNOOC the operator. It was the first agreement of its kind in China. Production started in 2001 with six platforms. In 2014, the infill project was completed ahead of schedule and under budget.
In 2007, the company signed a PSC with CNPC for the natural gas development and production in Chuandongbei Block, Sichuan Basin in southwestern China. In 2016, the Chuandongbei Project began natural gas production. In October 2019 UECSL transferred the operatorship to PetroChina, the subsidiary of CNPC, but continued to participate in the project with a 49% participating interest.
Chevron provides the local Chinese workforce with many learning and development opportunities. Courses cover subjects ranging from management and leadership training to communication skills and petroleum industry primers.
In 1985, Chevron began licensing our proprietary Vacuum Residue Desulfurization technology to Sinopec Qilu Petrochemicals in Shandong province. The technology is used to reduce sulfur content in fuel. We later licensed a hydroprocessing technology to Sinopec Qilu. Chevron’s hydroprocessing technology helps refiners improve the quality and increase the quantity of their base oil production.
awards and recognition
Between 2001 and 2021, the Hong Kong edition of Reader’s Digest presented Caltex with the Trusted Brand Award for 21 consecutive years.
Chevron was also recognized by the Hong Kong Council of Social Service, a group of 370 non-governmental organizations. For the 18th year running, Chevron received the Caring Company Award for our efforts in caring for the community, our employees and the environment.
From 2011–2020, Chevron supported the comprehensive Walk Wise program. In 2021, the company won the Prince Michael International Road Safety Award for its support to protect vulnerable young road users in rural communities across Chongqing Municipality and Sichuan Province during the nine years.
Corporate Affairs team
Chevron China Energy Company
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Chevron Downstream China/Hong Kong
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Media Relations: Chevron Greater China – Corporate Affairs
Caltex Fuels & Lubricants: Contact us in Hong Kong
Chevron Oronite (Beijing) International Trading Co. Ltd
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