highlightsofoperations

highlights of operations

Chevron is a leading refiner and marketer of petroleum products in South Africa. We do business through our subsidiary Chevron South Africa (Pty) Limited.

Our network of Caltex® service stations helps make us one of the country’s top two petroleum brands. We operate a refinery in Cape Town and a lubricants manufacturing plant in Durban.

For more than a century, Chevron has played a significant role in the country’s economy. As a result of our commitment to the South African principles of transformation, Chevron South Africa has received an upper-level Broad-Based Black Economic Empowerment rating for our industry.

Chevron South Africa is also a responsible corporate citizen, promoting health, education and economic development.

businessportfolio

business portfolio

In South Africa, we do business through our subsidiary Chevron South Africa (Pty) Limited. 

Chevron South Africa has a crude oil refinery in Cape Town that produces gasoline, diesel, jet fuel, liquefied petroleum gas and other products for South Africa, and it exports to other African countries. The refinery has a crude oil input capacity of 100,000 barrels per day.

Cape Town is home to a sizable supply and trading team. The unit manages Chevron’s supply, maximizing our crude oil revenues while reducing the cost of raw materials and transportation in South Africa.

Chevron South Africa has a lubricants manufacturing plant in Durban and maintains a laboratory and blending plant there.

Chevron markets its products in South Africa under the Caltex brand, one of the country’s top petroleum brands, with more than 845 service stations nationwide. These retail outlets sell transportation fuels, all containing Chevron’s proprietary Techron additive, and a range of Caltex-branded lubricants. Caltex Havoline® and Delo® lubricants are also available throughout South Africa, through authorized distributors and at auto parts stores.

A consortium of Black Economic Empowerment shareholders and an employee trust hold a 25 percent interest in Chevron South Africa (Pty) Limited.

In March 2017, the company signed an agreement to sell its interests in the Cape Town Refinery, along with the marketing and lubricants businesses in South Africa, pending regulatory approval.

inthecommunity

in the community

Chevron’s social investment programs in South Africa promote sustained socioeconomic growth through our three key focus areas: education, health and economic development.

education

In South Africa, Chevron focuses on improving instruction in science, technology and mathematics, which is in line with the government’s strategy to strengthen education and skills development.

Chevron South Africa has teamed up with the Centre for the Advancement of Science and Mathematics Education to establish a resource center that will make natural sciences, physical sciences and mathematics resources available to teachers. The portable laboratory is expected to benefit more than 10,000 students.

At 20 schools near our Cape Town Refinery, Chevron partnered with the Cape Town Science Centre to enhance math and science education using interactive teaching methods. Activities include science quests – interactive contests designed to stimulate an interest in science. In addition, science kits with practical experiments required by the school curriculum were distributed to high school teachers. The initiative also included Africa Code Week, which is hosted by the software company SAP. More than 500 Cape Town students learned to write their first lines of computer code, transforming them from digital users to digital creators.

health

Chevron worked in partnership with the North Star Alliance to start a roadside wellness clinic at the Caltex truck stop in Cato Ridge, KwaZulu-Natal, along one of the busiest transportation routes in Africa. The initiative is aimed at transportation workers, a group identified as being one of the most at risk for HIV/AIDS and other sexually transmitted diseases.

In partnership with the Desmond Tutu HIV Foundation, Chevron also funds the Kethuphila Youth Centre, which offers youth health services as well as study and recreational facilities. The aim is to curb high-risk sexual behavior, answer concerns about HIV testing and address feelings of vulnerability among youths in the Masiphumelele township. Chevron’s investment has led to the introduction of the Tutu Teen Truck, a self-sufficient mobile health care unit that extends health care to a broader youth community.

community and economic development

Chevron’s efforts to help build stronger communities extend to projects that can generate employment. Chevron works to create job opportunities and supports small business development and income-generating projects for women and youth.

We support the advancement of rural women through IMAGE (Intervention with Microfinance for AIDS and Gender Equity), which combines microfinance with health education that focuses on HIV infection, gender norms, domestic violence and sexuality. IMAGE aims to improve the economic well-being and independence of communities, reduce vulnerability to HIV and gender-based violence, and promote community-based efforts to address common concerns. As a result, nearly 25,000 women in three provinces have improved their circumstances in a number of ways:

  • Economically – Being able to afford basic needs, such as food, clothing and school fees
  • Materially – Adding household assets, such as appliances, furniture and other home improvements
  • Personally – Improving self-confidence, challenging gender norms, gaining autonomy in decision making and improving problem-solving skills

Chevron supports the Amy Foundation’s Entrepreneurial, Enterprise and Vocational Skills Development program (EESD), a sustainable and holistic development program that works to tackle youth unemployment head on. EESD focuses on developing participants’ soft skills – such as social communication and self-management behavior – while teaching vocational skills and providing work experience. EESD also encourages graduates to take advantage of mentorships so they can continue to grow and develop in their new careers.

In collaboration with Primeserve HR Solutions, Chevron launched an educational program for black, unemployed people living with disabilities. Candidates who are selected for the program receive training in business administration and marketing. The 12-month course teaches a combination of practice and theory and is designed to create a pipeline of workers who can compete for positions at Chevron and across the industry. In 2016, the Chemical Industries Education and Training Authority honored the program with its Recognition for Support of People With Disabilities Award for excellence in skills development and commitment to making a difference in the country.

recordofachievement

record of achievement

Chevron South Africa has played an important role in helping to meet the country’s fuel needs since 1911.

In 1936, a partnership between Chevron and Texaco created Caltex. In 1966, Caltex bolstered our standing as a key investor in South Africa with the construction of a refinery in Cape Town.

supporting transformation in South Africa

At Chevron South Africa, we believe transformation is key to the nation’s future and consistent with our business objectives. Our intent is to lead change not as a short-term project, but as a continual, deeply rooted process.

Our efforts have earned the company an upper-tier rating for an integrated oil company and certification as a Level Four Broad-Based Black Economic Empowerment contributor.

Our business strategy is best served by engaging with the communities in which we operate through programs that produce socioeconomic benefits. Our social investments in health, education and small enterprise development are aligned with government priorities. Similarly, they are guided by a global strategy that focuses on creating sustained economic growth by building the capabilities of people and institutions.

Preserving a robust and diverse natural environment is essential to the growth of our business. Chevron invests its resources to ensure compliance with environmental regulations and appropriate management of potential impacts on the environment.

health, environment and safety

Chevron South Africa is committed to the highest health, environment and safety standards.

Our Chevron Century Boulevard headquarters in Cape Town is a good example. The Green Building Council of South Africa bestowed a 5-Star Green Star rating on the 95,000-square-foot (9,000-sq-m) structure for excellence in green building design, construction and management.

At our Cape Town Refinery, a water recycling plant produces all of the water needed in the refining process, reducing the facility’s consumption of drinkable water. Every month, the water conserved by the refinery is the equivalent of that used by 6,000 homes. The recycling plant also reduces the refinery’s burden on the city’s sewage infrastructure.

The refinery’s new multipoint ground flare system and new 325-foot-tall (100-m) flare are expected to reduce visible emissions while improving operational efficiencies.

economy

Chevron South Africa is a major contributor to the region’s economic growth. According to a study conducted by Econex and Quantec Research for Chevron South Africa, Chevron’s direct and indirect investments contributed $7.8 billion to the South African economy in 2012. When considering economic ripple effects, that’s equivalent to more than 2 percent of the country’s gross domestic product.

Employment generated by business at Chevron South Africa’s sites has a multiplier effect on wages, salaries and business investments. Another Chevron-commissioned study by Econex reports that the refinery alone provides 500 direct jobs and 13,000 supplier and contractor jobs.

contactus

contact us

Chevron South Africa (Pty) Limited

Chevron South Africa
5 Century Boulevard, Century City
Cape Town, South Africa 7441
Telephone: +27.21.403.7911
General enquiries

Chevron Cape Town Refinery

Plattekloof Road, Milnerton. 7441
Cape Town, South Africa
Telephone: +27 21.508.3911
Visit Caltex South Africa

disclosure;forward-lookingstatements

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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 the delay or failure of such transactions to close based on required closing conditions set forth in the applicable transaction agreements; 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 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 20 through 22 of the company’s 2016 Annual Report on Form 10-K. 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," “potentially recoverable volumes” and "original 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 2016 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.

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