highlights of operations
Chevron has operations in China through our subsidiaries Unocal East China Sea, Ltd., and Chevron China Energy Company. The range of businesses includes petroleum and natural gas exploration and production and fuels and lubricants marketing. In addition, we contribute to the development of people and technology.
Chevron has a production-sharing contract (PSC) with China National Petroleum Corporation for the joint development of the Chuandongbei natural gas area in the Sichuan Basin in southwestern China. Chevron also works with partners to develop offshore energy resources in the South China Sea and in Bohai Bay.
Our Caltex® brand has become an established marketer of gasoline and lubricant products in China.
Our joint venture Chevron Phillips Chemical Company LLC (CPChem) and its affiliates hold an interest in a facility in Jinshanwei, near Shanghai.
We support social and educational programs in the communities where we work.
exploration and production
Chevron has interests in one operated and three nonoperated PSCs in China.
In January 2016, Chevron announced first gas from the Chuandongbei Project in the onshore Sichuan Basin. Chevron is the operator and has a 49 percent interest in the project, which covers more than 300 square miles (800 sq km) in Sichuan province and the Chongqing municipality. Production began at the Xuanhan Gas Plant with gas supplied from the Luojiazhai natural gas field. The plant has three gas processing trains with a design outlet capacity of 258 million cubic feet per day. Total daily production in 2016 averaged 111 million cubic feet of natural gas (51 million net).
Working in the South China Sea and Bohai Bay
In the South China Sea, the company has a 32.7 percent working interest in offshore Block 16/19, with six crude oil fields located in the Pearl River Mouth Basin.
In Bohai Bay, the company holds a 16.2 percent nonoperated working interest in Block 11/19 and a 24.5 percent working interest in the QHD 32-6 Block. The latter was the first development operated by China National Offshore Oil Corporation (CNOOC) that involved foreign participation.
In 2016, net average daily production for these PSCs was approximately 18,000 barrels of crude oil.
marketing and retail
There are about 70 Caltex® service stations in southern 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 by Chevron Hong Kong Limited and Caltex South China Investments Ltd., 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, Tianjin and Hong Kong. We also sell and distribute our products in central China through a joint venture in Shanghai.
Chevron markets Caltex Havoline® and Delo® engine oils and coolants, which are among the best-selling lubricants and specialty products in their class and 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.
Chevron Phillips Chemical Company is 50 percent owned by Chevron.
CPChem has a 40 percent interest in Shanghai Golden Phillips Petrochemical Company Ltd., a high-density polyethylene (HDPE) plant in Jinshanwei, near Shanghai. HDPE is used in a wide range of applications, including pipe, gasoline containers, tanks, and soap and detergent bottles.
In addition, CPChem sells styrene monomer, alpha olefins and specialty chemicals. Styrene monomer is a basic building block of the plastics industry and is used in a variety of products, including tires and carpeting.
Our subsidiary Chevron Oronite (Beijing) International Trading Co., Ltd., maintains a sales office in Beijing to coordinate the sale of 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. Oronite has also announced plans to build a manufacturing facility in Ningbo, China. The plant, projected to start up in 2020, is expected to further strengthen our supply capabilities. The company 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 nonprofit organizations that meet local needs.
improving education and training
Chevron’s Caltex business supports programs that benefit underserved 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 in 2015. This program provides additional learning resources for underprivileged children in five primary and secondary schools.
To encourage students in the study of science, technology, engineering and math, Chevron held the fourth annual Water Rocket Competition in May 2016. The competition attracted more than 150 students from all over Hong Kong.
Chevron and our employees donated funds that helped reopen the Nanba No. 2 Primary School in 2011. The school was destroyed in the 2008 Sichuan earthquake. In 2012, Chevron contributed funds to rehabilitate the Jianshe Village School and the Luowen Home for the Aged.
In 2014, Chevron sponsored 20 minority girls from western China to travel to Guangdong province for educational and vocational training as part of Project Eden. The program was created by Captivating International, a nongovernmental organization that works to lift children out of poverty.
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 few years, Chevron donations have benefited more than 500 families in western China.
In 2016, Chevron partnered with Conservation International to launch the Water for Healthy Life initiative in Kaizhou District, Chongqing municipality. The project focuses on protecting water in the Liyutang Reservoir, managing wastewater in the reservoir area, raising environmental awareness, improving sustainable agricultural practices and promoting alternative livelihoods. By the end of 2016, nearly 8,000 community members had received environmental protection awareness training. In the town of Zishui, Chongqing municipality, Chevron assisted the local government with a waste management education program.
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
Since 1997, Chevron has supported Operation Smile, which provides free surgeries to correct facial deformities for children living in disadvantaged regions throughout China. So far, Operation Smile has helped treat more than 23,000 children in the country.
Chevron supports an HIV awareness program run by the Red Cross Society of China. The program aims to reduce discrimination toward people living with HIV, prevent the spread of the disease and provide care for those who are infected.
Chevron donated a heart monitor/electrocardiograph/defibrillator to the Xiaba Health Clinic, which supports more than 190 relocated families in the village of Pingyuan, near the site of the Chuandongbei gas processing plant.
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 2012. The pilot project taught road safety courses to nearly 1,000 primary school students. In 2013, the program expanded to cover an additional 23,000 students in 16 more schools. By the end of 2016, the program had covered 90,000 students in 80 schools.
Chevron began partnering with Save the Children in 2012 to maximize the benefits of immunization for children in three townships in Dazhou Prefecture, Sichuan province. Save the Children worked with local health authorities to improve service delivery, promote healthy behaviors and advocate for innovative, digital solutions to improve immunization coverage in rural areas. As of 2015, more than 50,000 children had received immunization services, and 254 health workers had been trained on a digital immunization-status tracking system.
In November 2016, Chevron Hong Kong held its third annual Week of Caring. During the week, employees donated clothing to the Salvation Army, volunteered their time to prepare and provide food service to more than 1,200 elderly and homeless people, helped out at a dog rescue facility, and cleaned up a coastal beach in Tuen Mun.
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, Chevron and CNOOC signed the joint development agreement for the QHD32-6 Field in Bohai Bay, making Chevron the nonoperated joint-venture 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 30-year PSC with China National Petroleum Corporation for the joint development of the Chuandongbei natural gas field in southwestern China. In 2016, the Chuandongbei Project began natural gas production.
Chevron participates as a one-sixth owner of the Australian North West Shelf Venture liquefied natural gas (LNG) project, which won the right to provide natural gas for China’s first LNG supply contract. In 2006, the Chevron-operated Northwest Swan LNG carrier made the initial North West Shelf deliveries to China’s first LNG facility, in Guangdong province.
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.
Chevron launched a career development program in 2008 in China. Eighteen positions had been made available to university master’s degree graduates by July 2013.
Chevron launched its University Partnership and Association Relations Program with Southwest Petroleum University and China University of Petroleum–Beijing in 2013. The partnership focuses on scholarships, internships and support for industry conferences.
Chevron also extends development programs to our joint-venture partners. For example, new employees entering the CACT (CNOOC/Agip/Chevron/Texaco) Operators Group (a consortium of CNOOC, Agip and Chevron) are given hands-on training in order to work effectively and safely. We frequently use employee exchanges to share technology and skills with our Chinese partners. In spring 2012, Chevron hosted two training sessions for the employees of Sinopec, an oil and gas company based in Beijing, at Chevron’s Energy Technology Company in Houston, Texas. Twenty-four engineers and geologists from Sinopec received training on safe and effective development of large-scale shale gas resources.
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
In August 2010, Chevron and our partner CNOOC received two awards from the Chinese government for operations in Bohai Bay. The National Auditing Agency recognized the joint venture for compliance with auditing, business ethics and anticorruption efforts. The second award was from the Chinese Environmental Protection Agency for replacing a crude-burning generator with a gas turbine generator. Gas that previously was flared, or burned off, now generates power and saves more than 100 barrels of oil per day.
Several publications and their readers presented Caltex with honors in 2016. The Hong Kong edition of Reader’s Digest presented Caltex stations with the Trusted Brand Award for the 16th straight year. Hong Kong’s Next Magazine gave Caltex its Top Service Award for the 10th year in a row.
The company was also recognized in 2016 by the Hong Kong Council of Social Service, a group of 370 nongovernmental organizations. For the 13th year running, Chevron received the Caring Company Award for our efforts in caring for the community, our employees and the environment.
Chevron Oronite (Beijing) International Trading Co. Ltd
F16 China World Tower
No. 1 Jian Guo Men Wai Avenue
People’s Republic of China
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