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.
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.
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.
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.
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.
Tverskaya street, 22
Business Center “Summit”
Moscow, Russian Federation 125009
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This Site 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," "may," "could," "should," "budgets," "outlook," "on schedule," "on track" 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 startup 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 and 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 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 21 through 23 of the company's 2015 Annual Report on Form 10-K. In addition, such results could be affected by general domestic and international economic and political conditions. Other unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements.
Certain terms, such as "unrisked resources," "unrisked resource base," "recoverable resources," and "oil in place," among others, may be used to describe certain aspects of the company's portfolio and oil and gas properties beyond the proved reserves. For definitions of, and further information regarding, these and other terms, see the "Glossary of Energy and Financial Terms" on pages 50 and 51 of the company's 2015 Supplement to the Annual Report. As used in this report, the term "project" may describe new upstream development activity, including phases in a multiphase development, maintenance activities, certain existing assets, new investments in downstream and chemicals capacity, investment in emerging and sustainable energy activities, and certain other activities. All of these terms are used for convenience only and are not intended as a precise description of the term "project" as it relates to any specific government law or regulation.All trademarks, service marks, logos and trade names, whether registered or unregistered, are proprietary to Chevron, its affiliates, or to other companies where so indicated. You may not reproduce, download or otherwise use any such trademarks, service marks, logos or trade names without the prior written consent of the appropriate owner thereof.