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Many projects in pipeline for oil refiner

6th September 2013

  

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Multinational energy company Chevron Corporation executives said at the company’s annual security analyst meeting in March, in New York, that the com- pany is continuing to deliver industry-leading operational and financial results and pro-gressing key development projects.

“We had an outstanding year in 2012. We continue to lead the industry in total share- holder returns and most other safety and financial performance metrics,” said Chevron’s chairperson and CEO John Watson.

He added that the company’s key development projects remained on track, and it was well positioned to deliver its 2017 target of 3.3-million barrels of oil-equivalent production first announced three years ago.

“In addition, our project queue is gaining momentum to deliver growth beyond 2017,” he said.

Chevron Corporation vice chairperson and upstream executive VP George Kirkland highlighted Chevron’s industry-leading upstream results, which include top rankings for earnings a barrel, cash margin a barrel and return on capital employed.

The company also highlighted the strong performance of Chevron’s current producing base, where a consistent focus on reliability, operating efficiency and targeted investments had reduced natural field decline rates. He also noted ample investment opportunities and the ability to expand shale and tight reservoir operations, particularly in North America’s Permian and Marcellus basins.

“We are advancing our project queue as planned. Construction on our Australian liquid natural gas (LNG) projects, Gorgon and Wheatstone, is progressing very well, with first LNG for Gorgon targeted for early 2015. Construction continues on the Jack/St. Malo and Big Foot deep-water projects in the US Gulf of Mexico, both of which are scheduled for start-up in 2014,” he stated.

Kirkland highlighted encouraging results from recent new-technology applications designed to improve recoveries and reduce costs for deep-water developments.

He also commented on favourable project returns. “The projects we are bringing on line over the next five years have very sound economics and potential to increase our cash margins,” he said.

As part of the discussion on upstream activity, Chevron Europe, Eurasia and Middle East exploration and production president Jay Johnson focused on Chevron’s queue of projects and exploration opportunities aimed to deliver additional long-term production growth.

“Our growth opportunities include multiple frontier exploration plays and developing existing resources, most notably Tengiz operations in Kazakhstan, Wafra steamflood operations in the Partitioned Zone, and Australian and Canadian LNG projects. We’re well positioned for growth beyond 2017,” Johnson said.

Chevron Corporation executive VP of downstream and chemicals Mike Wirth sum-marised the results of Chevron’s multiyear plan to improve earnings in refining and marketing.

“Our restructuring efforts are complete. We’ve sold underperforming or nonstrategic assets and simplified our operations and reduced costs. Returns have increased 10% as a direct function of the improvements we’ve captured,” he said, adding that the company will maintain a focused and competitive portfolio and selectively pursue growth in petrochemicals and lubricants.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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