highlightsofoperations

highlights of operations

Chevron’s work in Russia ranges from exploration and transportation to technology licensing and consumer products.

Chevron is a major investor in the Caspian Pipeline Consortium (CPC). Approximately $2.2 billion of the $2.7 billion CPC Initial Construction Project budget was spent in Russia. Another $5.6 billion is expected to be spent on an expansion project that began construction in 2011.

Through our subsidiary Chevron Neftegaz Inc., Chevron continues to identify business opportunities in Russia.

Our subsidiary Chevron Oronite has developed relationships with several Russian oil companies that we supply with lubricants additives. We market Chevron® lubricants through a separate distributor network.

Through Chevron Lummus Global LLC, several of Chevron’s industry-leading technologies have been licensed to Russian oil companies.

In addition, Chevron is a committed member of the community in Russia, supporting social programs, education and the arts.

businessportfolio

business portfolio

caspian pipeline consortium

Chevron funded 30 percent of the Initial Construction Project cost of the CPC pipeline—an investment of about $800 million. 

In 2015, the CPC pipeline transported an average of 927,000 barrels of crude oil per day, including 103,000 barrels per day from Russia. The remaining 824,000 barrels per day were transported from Kazakhstan.

Work on the expansion project continued in 2015. A phased-in implementation is planned to continue in 2016 with capacity increasing incrementally to 1.4 million barrels per day by the end of the year. Chevron holds a 15 percent interest in the 935-mile (1,505-km) CPC pipeline.

Chevron also is a 50 percent owner of Tengizchevroil LLP, which operates the Tengiz Field in Kazakhstan. In addition to Tengiz crude oil, the CPC pipeline transports crude oil from the northeast shore of the Caspian Sea and other areas of Russia and Kazakhstan, including the Karachaganak Field in Kazakhstan, in which Chevron holds an 18 percent nonoperated working interest.

marketing and retail

Chevron markets Chevron® and Texaco® brand lubricants, coolants and fuel treatments for consumer, commercial and industrial use in Russia through authorized distributors.

Chevron Lummus Global LLC (CLG), a joint venture between Chevron and CB&I, is very active in Russia with its refining technology licensing business. CLG licenses its ISOCRACKING®, ISODEWAXING® and ISOTREATING™ hydroprocessing technologies used in the production of premium transportation fuels and lubricant base oils. CLG has recently sold licenses to Russian companies Tatneft, Rosneft, Afipka and Slovneft Yanos, among others. In 2014, Tatneft started up a large unit with CLG’s ISOCRACKING and ISODEWAXING technologies and as a result is now producing Group III base oils. In 2015, CLG licensed the first application of our ISODEWAXING technology on diesel dewaxing to Tatneft, which will use it to produce Arctic-grade diesel fuel at its Taneco refinery in conjunction with a second hydrocracker. In 2016, a unit using CLG’s ISODEWAXING® technology is scheduled to start up at a Slovneft Yanos refinery.  

Through another joint venture, Chevron also sells hydroprocessing catalysts and provides technical support to the refining industry.

inthecommunity

in the community

Since 1994, Chevron has spent more than $6.5 million on community and social programs in Russia. We have supported more than 120 programs in hospitals, orphanages, schools and museums, as well as sports and cultural projects.

For 21 years, Chevron has sponsored the Russian National Orchestra. We also have contributed to the Moscow Kremlin museums, the State Tretyakov Gallery, the State Pushkin Museum and the State Literary Museum.

Since 1996, we have provided scholarships for undergraduate and graduate students, sponsored scientific conferences, and funded the purchase of laboratory equipment for Lomonosov Moscow State University.

recordofachievement

record of achievement

Construction of the CPC pipeline began in 1999, and the first tanker was loaded with Tengiz crude oil at CPC’s terminal at Novorossiysk in 2001. In February 2016, the 4,000th tanker was loaded.

Our partnerships in Russia have been marked by several licensing milestones:

  • In 1994, Chevron sold its ISOCRACKING® process license to Kirishi Nefteorgsyntez (Surgutneftegaz).
  • In 2000, Chevron made its ISODEWAXING® catalysts, commercial expertise and technology available to LUKOIL-Volgogradneftepererabotka.
  • Chevron Lummus Global signed licensing contracts with the Ryazan Refinery in 2000 and with Tatneft and Rosneft in 2006. The company signed three more contracts with Rosneft in 2007, 2008 and 2009.

economy

The implementation of the Tengizchevroil (TCO) project has helped strengthen the Russian economy. TCO’s direct expenditures in Russia exceeded $1 billion in 2015. Since 1993, the direct expenditures of TCO in Russia have totaled more than $10 billion.

TCO transports sizable amounts of liquefied petroleum gas and sulfur export volumes on railroads through Russia. In 2015, Russia received more than $141 million in direct payments for railway tariffs, rail car leases and other shipping costs.

Chevron has established partnerships with Russian institutions, including the National Scientific Research Institute of Hydrocarbon Raw Materials–Vniius in Kazan, Moscow State University, Gubkin State Oil and Gas University, the AllRussia Research Institute of Oil Geology, and Gazprom’s Russian Research Institute of Gas & Gas Technologies.

contactus

contact us

Chevron Neftegaz, Inc.

Tverskaya street, 22
Business Center “Summit”
Moscow, Russian Federation 125009
Telephone: +7.495.258.2700
Fax: +7.495.258.2727

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