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. A significant expansion project, which began construction in 2011, is expected to cost $5.4 billion.
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, which 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 CPC Initial Construction Project cost of its Caspian Pipeline – an investment of about $800 million.
In 2016, the CPC pipeline transported an average of 959,000 barrels of crude oil per day, including 76,000 barrels per day from Russia. The remaining 883,000 barrels per day were transported from Kazakhstan.
Work on the expansion project continued in 2016. A phased-in implementation is planned to continue in 2017 with capacity increasing incrementally to 1.4 million barrels per day through midyear. Chevron holds a 15 percent interest in the 935-mile-long (1,505-km) CPC pipeline.
Chevron also is a 50 percent owner of Tengizchevroil LLP (TCO), 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. 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 it will use in conjunction with a second hydrocracker to produce Arctic-grade diesel fuel at its Taneco refinery. A unit using CLG’s ISODEWAXING technology is scheduled to start up at a Slovneft Yanos refinery in 2017. CLG also licenses delayed coking in Russia to several clients who have projects underway.
Through another joint venture, Advanced Refining Technologies, Chevron sells hydroprocessing catalysts and provides technical support to the refining industry.
in the community
Since 1994, Chevron has spent about $7 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 22 years, Chevron has sponsored the Russian National Orchestra. We also have contributed to the Moscow Kremlin Museums, the State Tretyakov Gallery 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’s Caspian Pipeline began in 1999, and the first tanker was loaded with Tengiz crude oil at CPC’s terminal at Novorossiysk in 2001. By the end of 2016, more than 4,300 tankers had been loaded.
The implementation of the TCO project has helped strengthen the Russian economy. TCO’s direct expenditures in Russia exceeded $1 billion in 2016. Since 1993, the direct expenditures of TCO in Russia have totaled more than $11.3 billion.
TCO transports sizable amounts of liquefied petroleum gas and sulfur export volumes on railroads through Russia. In 2016, Russia received more than $166 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.
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