highlights of operations
Chevron is the top natural gas and crude oil producer in Thailand, supplying about 35 percent of the country’s natural gas demand.
Chevron is a partner in the Star Petroleum Refining Public Company Limited refinery in Map Ta Phut, Thailand. The modern refinery is a pacesetter in design, safety features and pollution controls.
Our Caltex® brand ranks among the nation’s leading suppliers of petroleum products, which include gasoline, gasohol and biodiesel fuel. We also sell industrial lubricants and aviation fuel.
In Thailand, Chevron’s Downstream business is conducted through our subsidiary Chevron (Thailand) Limited. Chevron explores for and produces oil and natural gas through our subsidiary Chevron Thailand Exploration and Production, Ltd.
exploration and production
In 1981, eight years after the discovery of the first commercial natural gas field in the Gulf of Thailand, Chevron’s Erawan Field began production. Since then, natural gas has become the major source of energy for electricity generation in Thailand. The discovery also led to the development of the country’s petrochemical industry.
In the Gulf of Thailand, Chevron operates several blocks in the Pattani Basin, with ownership interests ranging from 35 percent to 80 percent. In the Malay Basin, Chevron has a 16 percent nonoperated working interest in the Arthit Field. Net average daily production in 2016 was 71,000 barrels of crude oil and condensate and 1.1 billion cubic feet of natural gas.
Chevron operates and has a 35 percent interest in the Ubon Project. The development concept includes facilities and wells in Block 12/27. The company continues to assess alternatives for development of the Ubon Field.
In 2016, we drilled two exploration and two delineation wells in areas where we operate in the Pattani Basin. All the wells were successful.
All the natural gas and condensate that Chevron produces for Thailand is sold to PTT Public Company Limited (PTT), the national oil company of Thailand. The natural gas, which is primarily used to generate electricity, fulfills about 35 percent of the country’s demand. The remainder is used for industrial fuel, transportation fuel and petrochemical feedstock. The gas is transported via PTT’s subsea pipelines to the gas separation plants in the Map Ta Phut Industrial Estate, on the eastern seaboard.
In the Thailand-Cambodia overlapping claim area, Chevron holds operated and nonoperated interests ranging from 30 percent to 80 percent. At the end of 2016, these areas were inactive pending resolution of border issues between the two countries
marketing and retail
In Thailand more than 370 service stations operate under Chevron’s Caltex® brand. Our operations also include two product pipelines that serve Bangkok and areas to the north and a partnership in a consortium that supplies Bangkok International Airport with aviation fuel and pipeline and terminal services.
Chevron sells Havoline® engine lubricants and coolants for passenger cars and motorcycles, Delo® diesel engine oils, greases, other lubricating oils, and Techron® Concentrate Plus fuel additives to consumer and commercial customers.
Through our subsidiary Chevron South Asia Holdings Pte Ltd., Chevron is a partner in Star Petroleum Refining Public Company Limited (SPRC) and holds a 60.6 percent interest in SPRC’s 165,000-barrel-per-day refinery in Map Ta Phut.
in the community
Chevron supports community programs in Thailand focused on education, economic development, health and the environment.
Chevron has an enduring relationship with the Phra Dabos Foundation, a royal initiative by Thailand’s late King Bhumibol Adulyadej. The foundation provides occupational studies, meals and housing for students who cannot afford higher education. From 2007 through 2012, Chevron contributed approximately $1.2 million to the foundation for scholarships, which benefited 360 students.
Chevron worked in partnership with the Distance Learning Foundation to provide better satellite communications at more than 700 schools across the country. To achieve this goal, Chevron donated $600,000 and helped launch a fundraising campaign that raised $1.2 million.
We started the Chevron School Network in 2008. This program promotes environmental awareness among students and teachers in 84 schools nationwide.
In 2010, Chevron collaborated with Thailand’s national oil company and Chulalongkorn University to establish an international master’s program in petroleum geosciences that attracts students from across Asia. Together, we provided $10 million in funding for the first five years of the program. The program has produced more than 110 graduates who are currently employed in Thailand’s petroleum industry. The program has been extended to 2018, and another $5 million grant was given to the university.
We also support a two-year partnership between Chulalongkorn University and Stanford University that includes student exchange programs and research collaboration.
In 2013 and 2014, we partnered with the Kenan Institute Asia, Pact Thailand and the Path2Health Foundation to promote inquiry-based science teaching, to educate parents on ways to positively communicate with their children, and to teach job skills and improve employment opportunities for vulnerable young people in 12 provinces.
In 2015, the company launched the Thailand Partnership Initiative, known locally as the Chevron Enjoy Science Project, a five-year, $30 million initiative to strengthen economic development by promoting the study of science, technology, engineering and mathematics (STEM) subjects. Over the course of the project, the initiative will establish 18 training hubs nationwide and benefit more than 500,000 students and 12,000 teachers.
In 2014, Chevron (Thailand) Ltd. launched Caltex Fuel Your School, an innovative project aimed at broadening educational opportunities for young people. To date, the project has helped more than 1,000 students and teachers from more than 50 schools.
better health through greater awareness
Chevron has directed $5 million to the Global Fund to Fight AIDS, Tuberculosis and Malaria to help fight HIV/AIDS in Thailand. We partnered with the Ministry of Public Health’s Department of Disease Control, the principal recipient of a Global Fund Round 1 HIV/AIDS grant. We work with Path2Health, a local nongovernmental organization (NGO), to raise awareness about healthy sexuality with the goal of reducing teenage pregnancies and sexually transmitted diseases in youth and children. More than 5,275 people have benefited from this project in Mueang and Singhanakhon districts in Songkhla province.
Chevron supports Operation Smile, a program that helps children with cleft lips and cleft palates. In Nakhon Si Thammarat province, funds raised by employees paid for medical services for 50 children and a speech camp for 50 children.
In 2012, we initiated the Heart to Heart campaign to support the Cardiac Children Foundation of Thailand. Donations raised by employees and funds from the company have helped more than 300 children.
In Nakhon Si Thammarat province, we provide funds to hospitals, support the development of nurses and nursing assistants, and donate ambulances and medical equipment.
responding to community needs
In 2011, Thailand experienced its worst flooding in 50 years, affecting hundreds of thousands of families and businesses. Chevron responded immediately with a $1 million donation to the Thailand Flood Relief Operations Command.
The company also contributed $1 million for restoration efforts to the Chaipattana Foundation, a Thailand-based NGO. Caltex retailers took part in a nationwide fundraising drive and added their donation of more than $200,000. In addition, Chevron provided $130,000 worth of flood relief supplies to the Ministry of Energy.
In 2012, Chevron’s Downstream business, in partnership with the My School Project, led a volunteer team of employees, Caltex retailers and lubricants distributors to provide supplies and help renovate Wat Klong Charoen School in Kamphaengphet province, which suffered heavy flood damage.
Partnering with the Population and Community Development Association, Chevron supported a $5 million project from 2011 through 2014 that aimed to improve education, income generation, occupational development, environmental protection and public health. More than 80,000 people in 50 villages were helped.
Chevron Humankind offers a one-to-one company match to 17 eligible nonprofits in Thailand. Since 2015, our employees have contributed more than $84,000, an amount that was matched by the company.
Chevron workers regularly contribute their time to participate in community volunteer activities around the country. We have built classrooms, painted school buildings, improved playgrounds, planted mangrove trees and distributed school supplies to needy students.
record of achievement
Chevron has had operations in Thailand since 1948. We began exploring for oil and gas in the 1960s.
In 1962, Chevron was the first oil company awarded exploration rights in Thailand. Eleven years later, Chevron made the first discovery of hydrocarbons in the Gulf of Thailand, which led to a major natural gas development there later in the decade.
In 1996, the SPRC refinery at Map Ta Phut began producing fuel. Chevron holds a majority interest in the refinery.
In 2011, we celebrated the 30th anniversary of production from the Erawan Field, the first commercial natural gas field in Thailand. Chevron’s discovery and development of Erawan contributed to the creation of Thailand’s petrochemical industry and the training of thousands of technical professionals.
health, environment and safety
Chevron protects people and the environment in every phase of our business, from facility and equipment design to ongoing training.
In 2014, the Royal Government of Thailand recognized Chevron Thailand when the Platong, Funan and Pailin offshore facilities received the Prime Minister’s Industry Awards for Best in Safety Management. In addition, the Department of Mineral Fuels honored our Pailin and Funan Asset Team with its Safety, Health and Environment Award in 2015 and 2016, acknowledging the team’s outstanding performance in operational excellence.
We began working with the Program for Appropriate Technology in Health (PATH) in 2009 to increase HIV/AIDS awareness among Chevron employees. We introduced the PATH Parents Network to help improve parents’ understanding of HIV/AIDS and to enhance how they talk about the disease with their children.
From 2005 to 2009, Chevron partnered with the Department of Mineral Fuels and the Petroleum Companies Foundation to support a reforestation project that commemorates Thailand’s late King Bhumibol Adulyadej’s ascension to the throne. Chevron contributed approximately $1.96 million to plant and maintain 3 million saplings, enough to cover 6,010 acres (24 sq km) in Phetchabun province. In 2011, we also worked with the Mangrove Forest Rehabilitation Project to expand the conservation and rehabilitation of mangrove forests.
In 2013, Chevron launched an environmental awareness campaign called A Journey Inspired by the King. With our partners – the Institute of Sufficiency Economy, the Agri-Nature Foundation and local communities – we aim to communicate the King’s Philosophy on sustainable watershed conservation and natural disaster prevention. Thousands of volunteers have helped build and check dams, dig irrigation ponds and canals, and plant trees in the Pa Sak Watershed each year. In 2015 and 2016, the project expanded to larger areas in this watershed.
Chevron has taken part in marine conservation projects in the Gulf of Thailand. Activities have included transplanting coral, laying mooring buoy anchors, releasing marine animals, cleaning beaches and raising public awareness about environmental conservation.
In 2013, Chevron Thailand and other petroleum companies contributed $1.2 million to the Petroleum Institute of Thailand Foundation to study and build artificial steel-jacket coral reef models. The project will study the feasibility of decommissioning platforms in efficient and environmentally friendly ways.
Chevron’s discoveries in the Gulf of Thailand support Thailand’s economic future. According to a study by independent researcher IHS:
- Chevron and its suppliers contributed more than $9.3 billion to the country’s gross domestic product in 2012 alone. That’s more than 2 percent of the nation’s economy.
- In 2012, Chevron contributed $3.5 billion to government revenue.
- Chevron spent $6 billion with local Thai suppliers from 2008 to 2012.
- Chevron’s investments in Thailand support more than 200,000 jobs.
Since 1962, Chevron has invested more than $38 billion in Upstream activities in Thailand. Chevron generated more than $12 billion in petroleum royalties for the Royal Government of Thailand from 1981 through 2016.
Working with the Department of Mineral Fuels, Chevron is committed to the long-term expansion of Thailand’s energy resources. Chevron also deploys the latest Upstream technology in Thailand, where complex geology makes informed drilling decisions a critical factor in success. Chevron was the first company to introduce Thailand to a waterflood system for crude oil production as well as other advanced technologies.
Our exploration team in Thailand has access to company expertise around the world. A first-of-its-kind Web-based management system enables secure sharing of real-time drilling and production data among team members, partners, regulators and customers. The system results in faster decisions, improved profitability and greater trust.
In 2013, work began on an innovative communication project to connect Chevron’s onshore facilities to eight offshore central processing platforms in the Gulf of Thailand with an 800-mile-long (1,300-km) fiber optic system. In 2015, the company successfully deployed the system to three wells – thereby enhancing reservoir management, optimizing production, and providing real-time well-site monitoring and analysis. These installations were part of an initial field trial for Chevron’s Real-Time Well Surveillance Project, which integrated fiber optic technology into Chevron Thailand’s standard completion design. The installations were the first such completions for Chevron worldwide.
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