Cautionary Statement Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securitie

Transcription

1 Chevron Corporation Joint Australia-Japan Energy Seminar Tokyo - 19 July 2011 Kurt Lindahl, GM Chevron Intl Gas, Japan Branch Chevron 2008 Australasia Business Unit 2011 Chevron Corporation

2 Cautionary Statement Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of Some of the items discussed in this presentation are forward-looking statements about Chevron's activities in Australia and LNG development activities. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks,", "schedules," "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in demand for and supply of crude oil and natural gas; the competitiveness of alternate energy sources or product substitutes; actions of competitors; the inability or failure of the company s joint venture partners to fund their share of operations and development activities; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest, severe weather or crude-oil production quotas that might be imposed by OPEC; potential delays in the development, construction or start-up of planned projects and general economic and political conditions; and the factors set forth under the heading "Risk Factors" on page 31 and 32 of the company s 2006 Annual report on Form 10-K. Unpredictable or unknown factors not discussed in this presentation could also have material adverse effects on forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. 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. U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. Certain terms, such as resources, probable or possible reserves, potentially recoverable reserves, and recoverable resources, among others, may be used in this presentation to describe certain oil and gas properties that are not permitted to be used in filings with the SEC. Investors should refer to disclosures in Chevron's 2006 Annual Report on Form 10-K. 2

3 Chevron History of Business in Japan Summary of Business History: 1951 Caltex and Nippon Oil formed Nippon Petroleum Refining Co. & Tokyo Tanker Co. Ltd Established Chevron Japan Ltd. (Oronite) 1977 Bontang Supplying LNG to 9 Japanese buyers (KE, CE, OG, QE, THG, NS, TG, HG, NG) 1989 NWS 1/6 owner supplying LNG to 10 Japanese utilities (TE, CE, KE, CDE, QE, TG, OG, THG, THE, SZG) Source: CIA The World Factbook 3

4 Chevron Australia Developing Vital Energy Resources Gorgon Wheatstone Exploration Barrow/Thevenard Islands North West Shelf Browse Perth Operated Non Operated 4

5 Significant Upstream Position Largest Natural Gas Resource Holder in Australia Natural gas resources greater than 50 TCF Australia is one of Chevron s four global exploration focus areas Largest exploration program in Chevron Australia s history Industry leading results announcing 9 discoveries in 12 months Chevron Operated Chevron Non-Operated 5

6 Gorgon Development Plan Chevron is operator with approximately 47% interest 3 x 5 MTPA LNG trains on Barrow Island A domestic gas plant with capacity of 300 MMCFD Shipping facilities to transport products to international markets Provides enough energy to power a city the size of Perth for 800 years

7 Gorgon Plant Layout LNG Trains 1,2,3 LNG Storage Tanks Materials Offloading Facility Condensate Storage Tanks LNG Load Out Facilities Acid Gas Removal + CO 2 Compression Condensate Stabilisation Power Generation Slug Catchers Inlet Processing Gas Dehydration

8 Carbon Dioxide Injection Project One of the world s most greenhouse gas efficient LNG developments Cutting-edge technology will create one of the world s largest carbon dioxide injection reservoirs Project emissions expected to be reduced by approximately 40% (~3.7 MTPA CO 2 e) Total investment approx. $2 billion More than $150 million spent on investigation and development to date

9 Gorgon Project - Benefits to Australia Employ about 10,000 people at peak construction Create 3,500 direct and indirect jobs throughout the life of the project Purchase ~$33 billion of local goods & services over first 30 years Government revenue ~$40 billion over first 30 years Significant domestic natural gas supply source for Western Australia Source: Independent economic modeling/chevron & contractors 9

10 Chevron s Gorgon Japanese Customers Sale and Purchase Agreements: Osaka Gas (1.375MTPA for 25 years and 1.25 percent equity) Tokyo Gas (1.1MTPA for 25 years and 1 percent equity) Chubu Electric (1.44MTPA for 25 years and percent equity) JX Nippon Oil & Energy Corporation (0.3MTPA for 15 years) Kyushu Electric (0.3MTPA for 15 years) 10

11 Chevron Wheatstone Project Wheatstone discovery well drilled in 2004 Initial two train 8.9 MTPA LNG development 200 MMCFD domestic gas plant Conditional environmental approval for 25 MTPA capacity 11

12 Wheatstone - Benefits to Australia More than 600 currently employed 6500 direct & indirect jobs at peak construction AUD $15 billion in local content spending over the project life Significant source of domestic natural gas supply Upstream Concept Downstream Concept

13 Chevron Linking Japan & Australia 13 Contact: