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 and 15 percent shareholder in the Caspian Pipeline Consortium (CPC). Operational since 2001, the pipeline provides a key export route for Chevron’s crude oil production from Kazakhstan.

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.

businessportfolio

business portfolio

caspian pipeline consortium

The CPC operates a 935-mile (1,505-km) crude oil export pipeline from the Tengiz Field in Kazakhstan to tanker-loading facilities at Novorossiysk on the Russian coast of the Black Sea. The pipeline provides a key route for crude oil production from both the Tengiz Field and the Karachaganak Field, also in Kazakhstan.

Russia CPC tank farm construction
Construction of the Tank Farm at the Marine Terminal in Novorossiysk, Russia.

During 2017, the pipeline transported an average of 1,180,000 barrels of crude oil per day to Novorossiysk.

Chevron funded 30 percent – an investment of approximately $800 million – of the CPC’s Initial Construction Project (ICP) to build the pipeline. Upon completion of the ICP, the pipeline capacity was approximately 600,000 barrels per day. Approximately $2.2 billion of the $2.7 billion IPC budget was spent in Russia.

In 2010, a capacity expansion project was approved and construction started the next year. The $5.4 billion expansion was completed in late 2017, more than doubling capacity to 1.4 million barrels a day. The added capacity accommodates a portion of the future growth in production from Tengizchevroil (TCO). In 2017, the pipeline transported a daily average of 120,000 barrels from Russia and the remaining 1 million barrels from Kazakhstan.

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 McDermott, 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. For example, 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 running at the Slavneft Yanos refinery. 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.

inthecommunity

in the community

Since 1994, Chevron has spent more than $7 million on community and social programs in Russia. We have supported more than 130 programs in hospitals, orphanages, schools and museums, as well as sports and cultural projects.

For 24 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.

recordofachievement

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 beginning of 2018, more than 5,000 tankers had been loaded.

economy

The implementation of the TCO project has helped strengthen the Russian economy. TCO’s direct expenditures in Russia exceeded $1 billion in 2017. Since 1993, the direct expenditures of TCO in Russia have totaled more than $12 billion.

TCO transports sizable amounts of liquefied petroleum gas and sulfur export volumes on railroads through Russia. In 2016, Russia received more than $145 million in direct payments for railway tariffs, rail car leases and other shipping costs.

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

contact

contact

Chevron Neftegaz, Inc.

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

disclosure;forward-lookingstatements

CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This Website 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,” “positions,” “pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,” “opportunities” 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 start-up 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 or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for 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 impact of the 2017 U.S. tax legislation on the company's future results; 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 19 through 22 of Chevron’s 2017 Annual Report on Form 10-K. Other unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements.