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 10 offshore producing fields in the United Kingdom. We operate three 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 2015 averaged 40,000 barrels of liquids and 115 million cubic feet of natural gas. We have interests in three operated fields: Alba, 23.4 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 its assets in the U.K. North Sea.
The Alder high-pressure, high-temperature gas condensate discovery is about 17 miles (27 km) west of the Britannia Field. The field is being developed as a single subsea well tied back to the existing Britannia Platform. Chevron has a 73.7 percent interest in and is operator of the project. Installation of the flowline was completed in the first quarter of 2015, and installation of topsides was completed midyear. We began drilling the development well in the third quarter of 2015, and first production is expected in the second half of 2016.
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 is planned to continue in 2016.
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. The project is estimated to incrementally provide potentially recoverable oil-equivalent resources in excess of 600 million barrels. During 2015, fabrication and installation work continued. Production is expected to begin in 2017.
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. We plan to continue front end engineering and design work in 2016.
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 October 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, Chevron seeks to build partnerships that support the economic and social fabric of the communities where we work. We demonstrate our commitment by supporting community organizations and programs that advance the study of science, technology, engineering and math (STEM) subjects. In 2015, Chevron’s social investment program in the United Kingdom surpassed $1.4 million (more than £1 million).
addressing basic human needs
In Scotland, Chevron partners with Instant Neighbour, a charity that takes a hands-on approach to tackling poverty. Chevron sponsors the organization’s Christmas Giving Tree program, which mobilizes Aberdeen’s citizens, including Chevron employees, to purchase gifts for disadvantaged children in the community. In 2015, volunteers gave 400 hours of their time to wrap more than 6,000 gifts.
Chevron also supports the Aberdeen Cyrenians, a charity that provides services for homeless people in the area. Chevron’s employees help the organization’s Street Alternatives program by volunteering on a weekly basis to cook and serve food for the homeless. The company also runs annual food drives to donate nonperishable food items for distribution through their local food bank.
supporting education and developing capability
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.
As a long-term supporter of the Oil and Gas Technical Apprentice Programme, Chevron invests in one of the most successful apprenticeship programs of its kind. We work closely with OPITO, a training organization for the oil and gas industry. OPITO manages the program to develop skilled and motivated technicians.
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 math master classes taught by industry professionals and academics. In addition, we support the organization’s STEM in the Pipeline and Maths in the Pipeline programs. Annually, Chevron also supports the TechFest Festival, a 23-day program of science and technology events, workshops, and shows across Aberdeen and northeastern Scotland. In 2015, Chevron’s work with TechFest reached more than 55,000 people.
Chevron sponsors 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 1,300 clubs in the network, with a membership of more than 26,000 boys and girls aged 10 through 17. We participate in the Young Engineers and Science Clubs annual event, where our employees use our interactive 3-Minute Challenge to test the young students’ skills.
We also work with Live Wire Productions, a social enterprise theater company that runs interactive workshops in schools. Through Live Wire’s Keeping Safe initiative, which focuses on helping children take responsibility for their own safety, Chevron has engaged with more than 85 schools across Aberdeen City and Aberdeenshire and reached approximately 4,500 children over the course of 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 safety and environmental practices to protect our workforce, local communities and the environment. Our goal is zero incidents, zero injuries. To support this, Chevron’s Operational Excellence Management System for improving health, environmental and safety (HES) performance is woven into every aspect of our operations.
In 2015, we achieved incident-free operations during the Alba turnaround; the installation of the replacement SADIE subsea water injection pipeline at Alba; and the Captain seismic campaign. We successfully completed a Secretary of State’s Representative emergency response exercise, which demonstrated our capability in responding to a major environmental event. We also completed the ISO (International Organization for Standardization) 14001 recertification, which is undertaken every three years for our operated assets.
Our incident-free operations program, which includes training materials related to human performance, is being rolled out to our offshore workforce to raise the awareness of error-producing conditions while undertaking work activities. This initiative is integrated with our process safety awareness campaign to reinforce the importance of championing 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; and our Stop Work Authority policy establishes the responsibility and authority of any involved individual to stop any unsafe condition or act.
Chevron also works closely with its business partners regarding HES performance by sharing lessons learned and best practices in turnaround activities, efficiency initiatives and technical safety support.
Chevron is represented on the Step Change in Safety leadership team. 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 Oil & Gas UK, the Program Advisory Board of the United Kingdom’s Oil & Gas Authority, and the Management Committee of the International Association of Oil & Gas Producers. We are also part of the Subsea Well Response Project, a nonprofit joint initiative working to enhance the industry’s capacity to respond to subsea well-control incidents.
the economy and technology
Chevron has had a significant impact on the U.K. economy over the course of five decades and continues to invest in major capital projects, new technologies and ongoing business operations that result in local expenditures, tax revenues and jobs.
Chevron employs U.K. design, engineering and manufacturing in our projects in the United Kingdom and around the world. Over the last five years, approximately 80 percent of Chevron North Sea Limited’s total operational and capital spending on its U.K. activities have been with U.K. suppliers. Chevron invests millions in technology, innovation, and research and development in the United Kingdom, helping create and unlock a host of growth opportunities for the future. Technology plays a critical role in meeting the challenges we face in the energy business. It enables Chevron to maximize reliability and production efficiency from existing assets and develop new oil and gas reserves in deeper water and more complex formations.
Our U.K. Global Technology Centre is based in Aberdeen, Scotland, and has a branch in London, England. 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 working on global projects. It also provides support for Chevron assets in the region and conducts research for deepwater projects worldwide, including advancing seismic methods such as ocean bottom nodes and the time-lapse 4-D imaging used in reservoir management.
awards and recognition
In 2015, 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.
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