highlights of operations
Chevron is an important part of the United Kingdom’s energy market.
Through our subsidiary Chevron North Sea Limited, Chevron has interests in 11 offshore producing fields in the United Kingdom. We operate four fields and have interests in seven nonoperated fields.
Chevron lubricants are sold through our subsidiary Chevron Products UK Limited, under the Texaco® brand. These include Havoline® motor oils, Ursa® commercial motor oils and Techron® fuel system cleaners. We also sell marine lubricants and fuels. Our products are sold directly and through a network of distributors.
exploration and production
Chevron produces crude oil and natural gas from the U.K. North Sea. Net daily production in 2016 averaged 43,000 barrels of liquids and 122 million cubic feet of natural gas. We have interests in four operated fields: Alba, 23.4 percent; Alder, 73.7 percent; Captain, 85 percent; and Erskine, 50 percent. The company also has interests in seven nonoperated fields: Britannia, 32.4 percent; Brodgar, 25 percent; Callanish, 16.5 percent; Clair, 19.4 percent; Elgin/Franklin, 3.9 percent; Enochdhu, 50 percent; and Jade, 19.9 percent.
Chevron has been active in Europe’s Upstream oil and gas industry for more than 50 years and continues to advance projects designed to sustain production and increase recovery from our assets in the U.K. North Sea. We apply our technology and experience to operate safely and reliably while unlocking new opportunities.
The high-pressure, high-temperature gas condensate Alder Field is about 17 miles (28 km) west of the Britannia Field. The field was developed as a single subsea well tied back to the existing Britannia facilities and required innovative subsea technology solutions. The flowline was installed in early 2015, and installation of topsides was completed midyear. First gas was achieved in November 2016, and production reached design capacity by year-end. The project has a design capacity of 14,000 barrels of condensate and 110 million cubic feet of natural gas per day.
The Captain Enhanced Oil Recovery Project is designed to increase field recovery by injecting polymerized water into the Captain reservoir. Front-end engineering and design work continued in 2016 and included a polymer injection pilot. The project calls for six new polymer injection wells.
About 47 miles (75 km) west of the Shetland Islands, the Clair Ridge Project is further developing the Clair Field. The project is designed to have a capacity of 120,000 barrels of crude oil and 100 million cubic feet of natural gas per day. Chevron has a 19.4 percent nonoperated working interest in the project. The project is estimated to incrementally provide potentially recoverable oil-equivalent resources in excess of 600 million barrels with a production life until 2050. During 2016, installation and hook-up work continued. Production is expected to begin in 2018.
The Rosebank Project is 80 miles (129 km) northwest of the Shetland Islands in 3,700 feet (1,115 m) of water. Chevron operates and holds a 40 percent interest in the project. The selected design calls for a 17-well subsea development tied back to a floating production, storage and offloading vessel, with natural gas exported via pipeline. The project is designed for a capacity of 100,000 barrels of crude oil and 80 million cubic feet of natural gas per day. Front-end engineering and design work continued in 2016, focusing on engineering to improve predictability in execution cost and schedule.
Chevron also holds interests in the Shetland Island Regional Gas Export System pipeline, the Graben Area Export Line pipeline, the Shearwater Elgin Area Line pipeline and the Sullom Voe Terminal.
marketing and retail
London is the regional headquarters for Chevron’s lubricants operation in Europe, the Middle East and Africa. Our Downstream business in the United Kingdom is conducted through our subsidiary Chevron Products UK Limited. Chevron lubricants are sold under the Texaco® and Caltex® brands, along with Havoline® motor oils, Ursa® and Delo® commercial motor oils and coolants, and Techron fuel system cleaners. We also sell marine lubricants. We sell our products directly and through a network of distributors.
In 2014, Chevron Shipping opened the Marine Learning and Development Center in Glasgow, Scotland. The training center can provide instruction for up to 2,500 mariners per year, offering courses that cover subjects from navigation to cargo handling, as well as technical subjects such as advanced hydraulics.
supply and trading
Chevron’s London office is home to one of the company’s four global trading floors, along with Houston, Texas; San Ramon, California; and Singapore. The Supply and Trading organization manages daily commodity transactions of 5 million barrels of liquids and 5 billion cubic feet of gas.
in the community
In the United Kingdom, we build relationships that support the economic and social fabric of the communities where we work. In 2016, Chevron invested more than $1.4 million (£1 million) to support community organizations and the development of U.K. talent through science, technology, engineering and math (STEM) initiatives, university alliances, and technical apprenticeship programs.
supporting strong communities
In Scotland, Chevron supports Instant Neighbour, a charity that takes a hands-on approach to tackling poverty. Instant Neighbour provides emergency food parcels to individuals needing urgent assistance and provides low-income parents with access to diapers, baby food and affordable, safe child care items.
Chevron also supports the Aberdeen Cyrenians, a charity that provides services for homeless people in the area. Chevron employees help the organization’s Street Alternatives program by volunteering on a weekly basis to cook and serve food to the homeless. The company also runs annual food drives to donate nonperishable food items for distribution through the local food bank.
supporting STEM education and developing skills
Chevron has developed strategic partnerships with the University of Aberdeen and Heriot-Watt University in Edinburgh as part of our University Partnerships and Association Relations (UPAR) group. UPAR forms relationships with colleges, universities and associations around the world to provide scholarships, grants and contributions to help build tomorrow’s energy workforce.
We focus on supporting programs that teach young people the STEM skills needed for careers in the energy industry. Through our support of TechFest, we offer students master classes in math taught by industry professionals and academics. In addition, we support STEM education through TechFest’s Pipeline and Maths in the Pipeline programs. Annually, Chevron supports the TechFest Festival, a 22-day-long program of science and technology events, workshops and shows in Aberdeen and across northeastern Scotland. In 2016, Chevron’s work with TechFest reached more than 55,000 people.
Together with Portsoy Community Enterprise and Banff Academy, Chevron is funding a new youth boat-building project to help develop employable skills in the local community. The practical outreach program uses traditional boat-building methods to provide young people aged 14 through 16 with an out-of-school STEM learning opportunity to help them develop self-confidence and teamwork skills.
We also sponsor the Scottish Council for Development and Industry’s Young Engineers and Science Clubs. This program has played a key role in inspiring young people to pursue STEM careers. There are currently more than 1,400 clubs in the network, with a membership of more than 30,000 boys and girls aged 10 through 17. We participate in the Young Engineers and Science Clubs annual event, where Chevron employees use our interactive 3-Minute Challenge to test the young students’ skills. We also provided sponsorship for a program called I’m an Engineer, I Can Help Here! The initiative focused on training teachers and educating students from Aberdeen City and Aberdeenshire about the different disciplines of engineering and related careers.
In addition, Chevron supports Engineer’n’ Our Lives, a program developed and delivered by Live Wire Productions. About 3,000 schoolchildren from eight primary schools in Aberdeen have taken part in a week of engineering challenges in their schools – giving them the opportunity to appreciate the role engineering plays in their lives. The students take part in age-appropriate STEM challenges with the help of Chevron engineers. Chevron also supports Safeopoly, another initiative developed by Live Wire Productions. It focuses on helping children understand the risks associated with using the Internet. To date, Chevron has engaged with more than 90 schools in Aberdeen City and Aberdeenshire and has reached approximately 5,000 children through the program.
record of achievement
Chevron has been a leading presence in the United Kingdom’s oil and gas industry for half a century. In 1964, a Chevron and Texaco joint venture drilled the first exploration well in the North Sea—a feat that established the company’s legacy in pioneering technology and innovation in its U.K. offshore operations.
health, environment and safety
Chevron’s operations employ rigorous health, environmental and safety (HES) practices to protect our workforce, the local communities and the environment. We aim to deliver world-class performance with a focus on preventing high-consequence incidents. Toward this end, Chevron’s Operational Excellence Management System for improving HES performance is woven into every aspect of our operations.
In 2016, we achieved the safe and successful completion of the high-pressure, high-temperature Alder project. In addition, we successfully completed a turnaround involving the Wellhead Protector Platform and the floating production, storage and offloading vessel at the Captain Field. The work involved more than 420 people and was delivered without a single injury and seven days ahead of schedule.
Our incident-free operations program, which includes training materials related to human performance, is being rolled out to our offshore and onshore workforce to raise the awareness of error-producing conditions in a workplace. This initiative is integrated with our process safety awareness campaign to reinforce the importance of operational excellence. We employ an effective behavior-based safety system known as POWER (Positive Observations Will Eliminate Risk), which monitors and encourages safe work behavior. In addition, our Stop-Work Authority policy establishes the responsibility and authority of any involved individual to stop any unsafe condition or action.
Chevron is represented on the leadership team of Step Change in Safety, an independent organization that represents the workforce, regulators and employers. In this role, we have ensured that industrywide HES materials are utilized across our operations. We are also represented on the board of directors of the United Kingdom’s offshore oil and gas industry association, Oil & Gas UK; the Program Advisory Board of the United Kingdom’s oil and gas industry regulator, the Oil & Gas Authority; and the Management Committee of the International Association of Oil & Gas Producers.
the economy and technology
In the United Kingdom, Chevron has been developing the energy that people and businesses depend on for more than 50 years. Our continued investment supports the economic health of the United Kingdom through job creation, tax revenues, investments in the U.K. supply chain, research and development, and the purchase of local goods and services.
We continue to create a positive economic ripple effect throughout the country. For example, in 2015, Chevron’s U.K. investments and projects added more than $2.7 billion to the country’s gross domestic product. In the 10 years ending in 2015, Chevron’s North Sea–related activities generated a tax contribution to the U.K. government of more than $5.9 billion. In addition, more than 70 percent of the work at Alder, our most recent development, was executed by U.K.-based companies. The contracts provided significant investment in businesses and supported several hundred jobs across the United Kingdom, including in Aberdeen, Invergordon, Leeds and Newcastle.
Chevron also substantially invests in technology and participates in more than 70 research and development projects in support of its U.K. North Sea assets. Technology plays a critical role in meeting the challenges we face in the energy business. It enables Chevron to maximize the economic recovery of its existing assets and develop new oil and gas reserves in deeper water and more complex formations.
Our U.K. Global Technology Center is based in Aberdeen and has a branch in London. It has provided technical services, research and development for operations such as Gorgon and Wheatstone in Australia, Tengizchevroil in Kazakhstan, Lianzi in Angola, and Bangka in Indonesia. The center – one of three in the company – strengthens partnerships with contractors in the region who are working on global projects. It also provides support for Chevron assets in the region and conducts research for projects worldwide, including seismic imaging, robotics, rock mechanics, reliability, environmental, reservoir and technical computing studies.
awards and recognition
In 2016, Chevron North Sea Limited received the Award of Excellence for adhering to the Oil & Gas Supply Chain Code of Practice for the U.K. continental shelf. The award is given for achieving Gold Level compliance—the highest possible—for three consecutive years. It is based on supplier ratings of Chevron’s performance and efficiency.
Hill of Rubislaw, Aberdeen
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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.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.