highlights of operations
Chevron’s legacy in Venezuela dates back to the Boscan Field discovery in the 1920s. Today we participate in five onshore and offshore production projects in the country. Chevron works in partnership with affiliates of Petróleos de Venezuela (PDVSA), Venezuela’s national oil company, in four joint-venture operations in western and eastern Venezuela, three of which are heavy or extra-heavy crude oil. We also have interests in two offshore blocks.
Our operations are accompanied by social investment programs that support economic development, education and health initiatives that strengthen the communities in the areas where we work.
exploration and production
Chevron is one of the leading private oil companies in Venezuela, where we partner with PDVSA affiliates in exploration and production projects.
In 2016, net daily production averaged 28,000 barrels of crude oil, 19 million cubic feet of natural gas and 28,000 barrels of synthetic oil upgraded from heavy oil.
- The Boscan Field in the state of Zulia in western Venezuela is operated by Petroboscan, S.A., a joint venture with PDVSA in which Chevron holds a 39.2 percent interest. During 2016, net daily production averaged 26,000 barrels of liquids and 2 million cubic feet of natural gas. In 2016, 33 development wells were drilled.
- Chevron owns 25.2 percent of Petroindependiente, S.A., which operates the LL-652 Field in Lake Maracaibo.
- Chevron has a 30 percent interest in Petropiar, S.A., a nonoperated joint venture with PDVSA in Venezuela’s Orinoco Belt. This vertically integrated project produces extra-heavy crude oil and refines it to a lighter, high-quality synthetic crude oil. Net daily production in 2016 averaged 28,000 barrels of synthetic crude oil, 2,000 barrels of extra-heavy crude oil and 15 million cubic feet of natural gas. In 2016, 67 development wells were drilled.
Chevron also has a presence offshore Venezuela. The Loran Field in Block 2 and the Manatee Field in Trinidad and Tobago, in which Chevron holds a 50 percent interest, form a single cross-border field along the maritime border of Venezuela and Trinidad and Tobago. The two countries have signed cross-border agreements, and in 2016, work continued on maturing commercial development.
Chevron has a 34 percent interest in Petroindependencia, S.A., which includes the Carabobo 3 Project. This heavy oil project is in three blocks within the Carabobo area of the Orinoco Belt.
in the community
Our social investment strategy aims to strengthen local communities with programs that deliver measurable and sustainable results. Our efforts are focused on three core areas: economic development, education and health. From 2006 to 2016, Chevron invested more than $94 million in areas where we operate in Venezuela as well as on cultural programs nationwide.
Chevron partners with local nongovernmental organizations (NGOs) to build capacity and self-sufficiency while promoting economic development in the communities where we have operations.
Chevron worked with Banauge, an NGO that provides microloans to small businesses, to create Emprered. This program has trained more than 7,000 people in planning, marketing, finance and other skills needed to create a successful business. Chevron also provides loans and training through Empremujer, the country’s first network for women entrepreneurs.
In partnership with Fundación Tierra Viva, Chevron created Weaving Hopes, a program that provides marketing training for women from the Warao ethnic group to help them sell their handicrafts.
For more than 11 years, we have sponsored the Ideas Contest, a competition that recognizes innovative ideas. In 2016, the Chevron Award for Women Entrepreneurs was presented to the chemical laboratory at Simón Bolívar University that created a system to preserve corneas for transplants. Female researchers run this world-class laboratory.
Dressed With Dreams
Our Dressed With Dreams program provides training in sewing, clothing design and clothing manufacturing – including recycling standards – to women in vulnerable situations due to violence or harsh economic conditions. The program also teaches marketing and business development skills and provides job placement opportunities.
education for growth
Education is the foundation for sustainable development. Since 2005, Chevron has worked with Venezuela’s Ministry of Education to expand resources and opportunities.
Chevron sponsors Aula 20 (Top of the Class), a training program that supports about 1,000 teachers and nearly 10,000 children from schools in Caracas, Anzoátegui and Zulia states. The program teaches modern math and reading instruction techniques.
In 2005, we built and have continued to support the Santo Domingo de la Calzada High School near the Boscan Field area of the Petroboscan project. We also built the Suürula WakuaIpa Elementary School, which serves 500 students from the Wayúu indigenous community.
To promote vocational training in computers, electricity and facility maintenance, Chevron built and supports the San Francisco Professional Training Center, which trains about 300 low-income participants per year. The center also helps find work for those who complete the training.
Talent for the future
Chevron works with two top Venezuelan universities to help develop the workforce required for the nation’s energy future. In 2017, the Natural Gas Business Management Specialization program at Simón Bolívar University in Caracas marked its 14th anniversary by graduating 12 more students. Since its inception, the program has educated more than 320 graduates from across the country in the technical, management, environmental, legal and regulatory aspects of the natural gas business. Through our University Partnerships and Association Relations program, we support the University of Zulia in Maracaibo through scholarships and classroom technology upgrades.
Chevron promotes health care programs in the communities where we operate.
Drawing smiles and bringing hope
We have partnered with seven organizations to treat more than 3,000 children and adults with cleft lip, cleft palate and similar conditions. Chevron employees also provide a range of services to patients and their families throughout the treatment process. Volunteers help parents fill out medical forms, take children to recreational activities, and donate toys and clothes.
In partnership with the Fundación Amigos del Niños con Cáncer (Friends of Children With Cancer Foundation), Chevron has upgraded cancer treatment facilities in Zulia and Anzoátegui states.
Improving resources and addressing HIV prevention
In western Venezuela, we work with the Innocens Foundation, an NGO dedicated to preventing mother-to-child transmission of HIV/AIDS and to providing treatment to those who are affected. This partnership also sponsors workshops to reduce sexually transmitted diseases and unplanned pregnancies among adolescents.
We also support the Healthy Communities Program in eastern Venezuela, which provides medical supplies, equipment and care in the areas of dentistry, general medicine and pediatrics. More than 5,900 patients have received care.
For four years, Chevron has sponsored the National Orchestra System – commonly known as El Sistema – which provides free classical music education to hundreds of children. The Youth and Children Orchestras in Anzoátegui and Sucre states have provided musical education to more than 11,000 low-income children. Partnering with the Foundation for the Academy of the Gaita Ricardo Aguirre of Zulia State and the Secretariat of Culture of Zulia State, Chevron supports the preservation and dissemination of gaita zuliana, a folk music genre recently declared a national cultural heritage.
record of achievement
Chevron’s relationship with Venezuela started in the early 1920s when the company began exploring for oil in the country. In 1946, the giant Boscan oil field was discovered west of Lake Maracaibo, in the state of Zulia. Following the nationalization of the Venezuelan oil industry in the mid-1970s, Chevron returned to Venezuela in 1996 to assume operation of the same field. That same year, we established our Latin American headquarters in Caracas. In 2006, under a new contract, operatorship of Boscan shifted to Petroboscan, a joint-venture company in which Chevron holds a 39.2 percent interest.
In 1997, Chevron was named operator of the LL-652 Field, an offshore field in the northeastern portion of Lake Maracaibo. In 2006, under a new contract, operatorship of the LL-652 shifted to Petroindependiente, a joint-venture company in which Chevron holds a 25.2 percent interest.
Also in 1997, Chevron partnered with an affiliate of PDVSA to develop what is currently known as the Huyapari Field. Under a 2007 contract, Petropiar became the operator. Chevron has a 30 percent interest in this joint venture. The project extracts and upgrades extra-heavy crude oil from the Orinoco Belt, the world’s largest known hydrocarbon deposit, in southern Venezuela.
Chevron also has made several significant natural gas discoveries in Plataforma Deltana Blocks 2 and 3. Plataforma Deltana is an extensive offshore area close to the estuary of the Orinoco River, in eastern Venezuela.
Chevron and its partners have made significant capital investments in Venezuela, helped develop the national workforce and promoted the use of local resources.
Petropiar’s crude oil upgrader and Upstream facilities employed about 12,000 people during peak construction.
Chevron makes important technological contributions by bringing our most effective methods to the Venezuelan oil industry. We also share knowledge about offshore engineering design, heavy oil production and upgrading, and enhanced oil recovery through thermal and water injection.
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.