Chevron Australia
2011
VisionAt the heart of The Chevron
Way is our vision... to be
the global energy company
most admired for its people,
partnership and performance.
The Chevron Way – It’s How We do Business
Getting Results the Right WayThe Chevron Way explains who we are, what we do, what we believe and what we plan to accomplish. It establishes a
common understanding not only for those of us who work here, but for all who interact with us.
Our vision means we:
• safely provide energy products vital to sustainable economic progress and human development throughout the world;
• are people and an organisation with superior capabilities and commitment;
• are the partner of choice;
• earn the admiration of all our stakeholders — investors, customers, host governments, local communities and our employees — not only for the goals we achieve, but how we achieve them;
• deliver world-class performance.
ContentsMD Foreword 4
About Chevron Australia 7
Exploring for Energy 9
The Global Technology Centre 11
Partnering with the Community 13
Gorgon Project 19
Wheatstone Project 25
Striving for Excellence 29
Energy Industry Partnering 32
Working at Chevron 35
Protecting the Environment 39
Construction of the Gorgon Project’s materials offloading facility.
ValuesOur company’s foundation is built on our values, which
distinguish us and guide our actions. We conduct our business
in a socially responsible and ethical manner. We respect the
law, support universal human rights, protect the environment
and benefit the communities where we work.
Our values are:
Integrity
Trust
Diversity
Ingenuity
Partnership
Protecting people and the environment
High performance
4 | Chevron Australia
Global energy demand is expected to
rise by 50 percent by the year 2035.
The centre for this growth will be Asia,
which is expected to grow at three
times the rate of the global demand1.
This means the decisions we make
here in Australia will have energy
implications for future generations
across Asia - and the world.
Regionally, demand for cleaner
burning natural gas alone is expected
to increase by more than 100 percent
by 2030 and in Australia, natural gas
consumption has already increased
more than 50 percent since 1997,
compared with just over 10 percent for
coal and liquid fuels, respectively.
By embracing the opportunity
represented by this growing demand
for cleaner energy, Chevron can
provide a platform for broader
economic growth throughout Australia
and indeed the world.
Through the environmentally
responsible development of our
Liquefied Natural Gas (LNG) projects
– Gorgon and Wheatstone – Chevron
is positioned to provide energy for
generations to come, including LNG to
our regional neighbours and domestic
gas locally.
And we are doing this through
ingenuity, high performance and
partnerships – all of which play a
critical role in the energy equation.
In Western Australia, we are fostering
innovation through our Global
Technology Centre, which enables
Chevron to partner with universities
MD Foreword
“ By providing cleaner energy, we in turn improve the standard of living for many.”
Roy Krzywosinski Chevron Australia Managing Director
Globally, the appetite for oil, natural gas and other energy sources continues to grow dramatically.
1 Source: US EIA International Energy Outlook
MD Foreword
Chevron Australia | 5
and industry. This in turn provides
expertise to Chevron’s businesses
within Australia and the Asia Pacific
region and shapes Perth as a gas
technology centre of excellence.
At a national level, our two projects are
set to create an estimated the 16,500
direct and indirect jobs and generate
almost $50 billion in expenditure on
local goods and services.
However investing in local communities
is more than just building projects
and awarding large contracts – it‘s
also about building productive,
collaborative, trusting and beneficial
relationships in the communities in
which we operate.
That’s why in the north-west of West
of Australia we are investing in, high-
value programs that build human and
institutional capacity and stimulate
economic growth.
It’s by working in close partnership
with government, communities,
customers and local companies that
Chevron will continue to positively
impact the quality of life of people
throughout Australia and indeed the
world for generations to come.
Roy J. Krzywosinski Chevron Australia Managing Director
Chevron Australia’s corporate office is located in Perth.
We are leading the development of the
Gorgon and Wheatstone natural
gas projects, we manage an equal one-
sixth interest in the North West Shelf
Venture, we are a participant in the
proposed Browse LNG Development
and operate Australia’s largest
onshore oilfield on Barrow Island and
the Thevenard Island oilfields.
We are also proud of our
environmental record on Barrow Island
and are committed to maintaining the
island’s biodiversity and conservation
values.
Our core value of protecting our
people means we safely produced
more than 315 million barrels of oil
on Barrow Island and delivered more
than $1 billion in revenue to the WA
government.
Safety is a part of the value system and
culture at Chevron. We are proud that
the company’s days-away-from-work
injury rate is globally, among the best
in the industry. We’ve turned words
on a page into the daily actions of our
workforce. Our workforce believes that
About Chevron Australia
Chevron is one of the world’s leading integrated energy companies and through its
Australian subsidiaries, has been present in Australia for almost 60 years.
At Chevron, we do it safely or not at all, and there’s always time to do it right.
Chevron Australia | 7
incidents are preventable and they
behave accordingly.
We’ve accomplished this through
leadership, setting high expectations,
giving people the tools and processes
to manage operational risks, auditing
for compliance, and then holding
people accountable for their actions
and results.
About Chevron Australia
8 | Chevron Australia
Barrow Island has maintained its Class A Nature Reserve status while being
home to Australia’s largest onshore oilfield for the last 40 years, during which
time more than 300 million barrels of oil have been produced.
Our environmental management of Barrow Island has received national
and international recognition. Our rigorous environmental processes have
made the island an environmental showcase and world-class example of
sustainable development and demonstrate our commitment to our core value
of protecting the environment.
We have an unwavering commitment to being a good partner with our
communities by focusing on building productive, collaborative, trusting and
beneficial relationships. Our employees care about where they live and work
and Chevron Australia runs a variety of employee involvement programs to
encourage employees to actively engage in their community.
We believe that contributing to the social and economic development of the
communities where we work is fundamental to the broader success we seek
to achieve as a business. In Australia, our social investment is concentrated
in Western Australia, where Chevron Australia is headquartered. We invest in
high-value programs that build human capacity and help stimulate economic
growth. This in turn helps communities to prosper.
Our rigorous environmental processes have made Barrow Island the island an environmental showcase and world-class example of sustainable development.
Chevron Australia Snapshot
• In 2010, our daily production in
Australia was 110.6 MBOED. This
consisted of 34.3 MBOED of
Liquids (condensate, oil and LPG)
and 76.3 MBOED of gas (LNG).
• We made ten offshore discoveries
in WA in two years.
• We are Australia’s largest holder
of gas resources.
• The Gorgon Project will include
the world’s largest commercial
scale carbon dioxide injection
project, making the Gorgon
facilities the world’s most
greenhouse-gas efficient.
• Our quarantine system is
considered to be “world’s
best practice”1.
• We operate more than 53,000
square kilometres of exploration
acreage in WA.
• We have been involved in Australia
for almost 60 years.
• About 3000 people are expected
to work for Chevron Australia by
the end of 2011.
1 Western Australian Environmental Protection Authority.
As part of the Wheatstone Project, a comprehensive range of environmental studies were undertaken on-site.
It has never been a more exciting time for Chevron in Australia with our two mega projects,
Gorgon and Wheatstone on track and set to increase natural gas supplies to Australia and
the region.
We are creating history, right here, right now.
Exploring for EnergyDeveloping Vital Energy Sources
In a world desperately seeking secure and reliable energy supplies, the urgency of
getting new supplies of natural gas to domestic and global markets is building.
Growing demand is fuelled by a burgeoning population that is estimated to
increase by about 20 percent in the next 20 years, with most of that growth in
countries with emerging economies, such as China and India2.
At the beginning of 2011, Chevron Australia’s estimated total resource is almost
60 trillion cubic feet. As Australia’s largest holder of natural gas resources, we
are committed to providing much-needed new and cleaner burning energy to the
Asia-Pacific region.
The Chevron-operated Gorgon Project represents the single biggest investment
in a resource project in Australia. Both Gorgon and Wheatstone projects are
amongst the largest we have ever undertaken globally. These projects secure
Australia’s position as a leading gas producer and generate tremendous economic
benefits for both Western Australia and Australia, including employment,
government revenue and local business opportunities, for generations.
However, we recognise that the world needs all the energy we can develop.
Chevron Australia | 9
The Atwood Osprey.
2 US EIA International Energy Outlook
Exploring for Energy
10 | Chevron Australia
At Chevron one of our core values is high performance. Our exploration results
are amongst the best in the industry. We have made ten offshore discoveries in
Western Australia since April 2009, underpinning potential expansions at Gorgon
and Wheatstone.
Offshore northwest Australia is recognised as one of the most prospective areas
for gas resources in the world and it is one of our key exploration focus areas.
Continued exploration success is expected as we continue our deepwater drilling in
the area.
To date, Acme-1, drilled in 2010, is one of our most significant natural gas
discoveries in Australia, in terms of net gas pay. Acme-1 was also the most
significant discovery for Chevron Corporation globally in 2010.
We attribute our ongoing success to a combination of significant exploration
funding, the quality of our drilling program and a commitment to technical
excellence and safe operations.
Exploration is a big part of Chevron’s business in Australia. We are investing
hundreds of millions of dollars into an ongoing exploration and appraisal program.
Underpinning this investment is the knowledge that discoveries eventually become
long-term energy producers.
Energy is not a luxury – it’s the foundation for economic growth. And by investing
in the future, we’re helping to build economic prosperity both here in Australia and
around the globe.
Exploration Snapshot
• We are currently undertaking
our largest drilling campaign in
Australia.
• We’ve successfully drilled 10
discoveries in the past two years.
• Our operated interests span more
than 53,000 square kilometres of
acreage and we hold non-operated
interests across around 16,000
square kilometres of acreage, all
offshore northwest Australia.
• Acme-1 is our most significant
discovery in Australia in terms of
net gas pay.
• Operating 2 submersible drilling
rigs – Atwood Osprey and Eagle.
Offshore northwest Australia is recognised as one of the most prospective areas for gas resources in the world and it is one of our key exploration focus areas.
The Global Technology CentreDifferentiate Performance Through Technology
With 25 percent of our global oil and gas production coming from the Asia-Pacific
region, the Centre was strategically located in Perth to support our regional operations.
The Centre helps Chevron’s business units solve the technical challenges of
finding, evaluating and producing their energy resources safely and economically,
while protecting the environment and supporting those communities in which
Chevron operates.
The Centre works closely with university and research institutions through
various alliances, such as the Western Australian Energy Research Alliance (WA:
ERA) and Chevron’s global University Partnership Program, to build on petroleum
research, technology development and education and training projects.
For example, new technologies are helping geoscientists to see more clearly
beneath the earth’s surface. These advances enable Chevron to maximise the
production of our existing fields and to drill deeper than ever before, so we can
locate and recover resources that were once considered too difficult to develop.
Although natural gas and coal are expected to provide more than 80 percent of
the world’s energy for the near future, next-generation renewable energy may
play a key role in meeting the world’s energy needs. Globally, we have formed
research partnerships with many academic institutions to pursue renewable
energy technology, including biofuels from non-food sources.
We’re committed to bringing proven technical capabilities to our operations so we can help
meet the growing global demand for energy. As part of this we established the Perth Global
Technology Centre in 2007.
Globally we have a number of collaborative research projects which are focused on developing knowledge and technology in alternative energy sources, such as hydrogen and coal and gas to liquids, and the management of related health, safety and environmental aspects.
Chevron Australia | 11
Above – Chevron’s Perth Global Technology Centre was established in 2007.
Chevron Australia
12 | Chevron Australia
Our commitment to Indigenous engagement incorporates a range of activities in areas where we operate.
We have an unwavering commitment to be a good partner and place great focus
on building productive, collaborative, trusting and beneficial relationships.
In Australia, the majority of our social investment is concentrated near our
projects in the north-west of WA as well near our headquarters in Perth. We
work closely with a range of partners, including local communities, Indigenous
stakeholders, government agencies, non-government organisations, universities
and industry bodies.
Our initiatives focus on investing in high-value programs that build human and
institutional capacity and stimulate economic growth. We also provide assistance
to small and medium enterprise development in local communities, especially
those that preserve and promote Indigenous arts and culture.
We are committed to providing sustainable outcomes and helping to build
stronger communities and we commit to consulting the local community in the
early planning stages of the development of programs.
We have an unwavering commitment to be a good partner and place great focus on building productive, collaborative, trusting and beneficial relationships.
Partnering with the CommunityWorking together to build better, stronger communities
In 2010 we contributed to programs that mostly focussed on outcomes relating to health
and social wellbeing; education and training; arts, culture and heritage preservation and the
environment.
Chevron Australia | 13
Partnering with the Community
14 | Chevron Australia
Key partnership programs include:
• TelethonSpeechandHearing – a partnership that focuses on combating
middle ear disease through the use of mobile ear clinics (Ear Buses) to
conduct screening and medical intervention in schools throughout the
Pilbara and Perth Metro with the aim of improving hundreds of school age
children’s wellbeing and opportunities for educational attainment.
• OnslowWELD (Working on Employment, Learning and Development) – which
aims to provide a vocational curriculum in various trades to help improve
student retention and enhance their employability post-schooling.
• TheSwanDistrictsFootballClub’sVSwansActiveYouthDevelopment
Program – which uses sport as a tool to engage young people in education
and deliver key social, health and academic outcomes in Onslow.
• Over the past four years our CommunitySpiritGrantsprogram has
provided grants totalling more than $500,000 to community projects in
Exmouth, Onslow, Karratha, Dampier and Roebourne.
• We were the exclusive naming rights sponsor of WA’s largest community
event, 2011ChevronCitytoSurfforActiv.
• FOCUSEnvironment – an annual photographic competition that encourages
WA students from years 4 to 12 to be more aware about the environment.
Soon Pansy Hicks will be able to complete
her stunning paintings within the new art
building at Roebourne. Photo courtesy of
FORM and John Elliott.
Partnering with the Community
• TheRoyalFlyingDoctorService – this long-term relationship provides
ongoing support to its air medical service in WA.
• TheSmithFamily – Chevron Australia’s funding to extend the Learning for
Life program into Mirrabooka, Gosnells, Midland while the Chevron and the
Gorgon Joint Venture Participants are funding the program to Karratha.
The program focuses on removing barriers to educational attainment for
students from low socio-economic backgrounds.
• TheBeaconFoundation – Chevron and the Gorgon Joint Venture
Participants funding will extend the No Dole program into two new Western
Australian schools in the Kwinana area. This program specifically addresses
youth unemployment equipping students with skills to identify and access
appropriate employment opportunities.
• OnslowCommunityGarden – this project was funded by Chevron and the
Gorgon Joint Venture Participants. The Onslow Community Garden assists
the community in developing skills in growing organic produce, building and
development, horticulture, water management, organic waste management,
urban biodiversity and clean food production.
• BeyondtheBeaker – a WA touring program initiated in partnership with
Scitech that aims to inspire year 8 to 10 students to pursue careers in science,
mathematics, engineering and technology.
• MastersSeriesSponsorandPlatinumPartnerofWestAustralian
SymphonyOrchestra (WASO) – we also support the “WASO on the Road
Tours” across Perth while Chevron and the Gorgon Joint Venture Participants
are funding the WASO on the Road Tour to the Pilbara.
• MarrMooditj – which provides vocational training for Indigenous youth in the
Pilbara region to enable them to pursue careers within the health industry.
• FORM – Roebourne Art Centre partnership funded by Chevron Australia and
the Gorgon Joint Venture Participants supports the construction of an art
centre, training and professional development for emerging and established
Indigenous artists and assists in building new employment and economic
opportunities for Indigenous people in the creative industries.
• OnslowYouthOutreachProgram – the program promotes positive
behaviour and provides a range of school holiday and after school programs.
• OnslowPrimarySchool to develop a youth-focused education program
using the leadership of high-profile local Indigenous sportsmen – Peter
Matera, Chris Lewis and Andrew Krakouer. The program encourages students
to stay and excel at school while learning about healthy lifestyles.
We provide assistance to a range of community-based organisations and events, including the Pilbara Industry Community Council Health Initiative, Indigenous Business Development Industry Collaborative, Pilbara Aboriginal Contractors Association, NAIDOC (the National Aboriginal Islander Day Observance Committee) Week Celebrations, Onslow Breakfast Program, Yirra Yaakin, Black Swan Theatre Company and the Beacon Foundation.
Chevron Australia | 15
16 | Chevron Australia
HealthandWellbeing
Our partnership with Telethon Speech
and Hearing focuses on combating
middle ear disease throughout the
Perth metropolitan and Pilbara.
With an estimation of greater than
40 percent of Indigenous children
suffering from untreated middle ear
disease, this program aims to improve
hundreds of school age children’s
wellbeing and opportunities for
educational attainment.
Middle ear disease which has
significantly higher prevalence in
Indigenous children, contributes
to speech, language, behavioural
problems and learning difficulties,
and can have life-long consequences.
The Chevron sponsored program
supports mobile ear clinics (Ear
Buses) to conduct screening and
medical intervention in schools
across the Pilbara and Perth.
Educationandtrainingprograms
In addition we encourage students
to consider careers in mathematics,
engineering, technology and science
by sponsoring an education program
by Scitech at local schools called
“Beyond the Beaker – Discovering
Careers in Science”.
We run a Schools Information
Program, where our employees make
presentations to tenth grade students
to increase their awareness of the
petroleum industry.
We are also involved in Onslow WELD
(Working on Employment, Learning
and Development), which aims to
provide a vocational curriculum
in various trades to help improve
student retention and enhance their
employability post-schooling.
Employeecommunityprograms
We encourage our employees to be
involved in their local communities
and spend one paid day per year
volunteering on worthwhile community
projects.
We also support employees’ efforts
outside of work by providing grants
to community organisations they
undertake volunteer work. Launched
in February 2008, Change for Charity
is our employee payroll donation
program. The program enables
employees to make regular donations
to WA registered charities through
United Way. The administration costs
associated with the program are
covered by Chevron, allowing 100% of
every donation made by employees to
be received by the nominated charity.
In addition we match contributions
made by employees dollar-for-dollar.
So far the Change for Charity program
has raised more than $180,000.
Partnering with the Community
Our key focus areas for community investment in Australia are improving Aboriginal health, early education, work readiness, business development, employment and heritage preservation.
Onslow Community Garden.Telethon Speech and Hearing.
PartneringwiththeOnslowcommunity
We are involved with a number of
program and activities in Onslow,
including public meetings and regular
workshops with nominated Community
Reference Group members.
In 2010 we committed significant funds
to community development programs in
Onslow through our Social Investment
program, focusing on five key areas:
• Health and social wellbeing
• Education and training
• Environment
• Small and medium enterprise
development
• Arts and Culture and Civic and
Community
As part of our Social Investment
program, we support six local
community organisations through
our Community Spirit Grants program
that are the essence of a thriving local
community across four categories:
families and children, sport, volunteers
and the environment.
We have listened to Aboriginal people
and as a result are focusing on long-
term strengthening of their community
by improving health, early education,
work readiness, business development,
employment and heritage preservation.
As our natural gas projects in the
north-west WA move forward, so does
our commitment to enhancing our
partnership with the local communities
in which we operate. With the Gorgon
and Wheatstone Projects set to
leave long-lasting legacies with local
communities, it is imperative that we
work together to deliver the most
practical and effective programs to the
long-term benefit of the community.
As part of this, we are committed to
consulting actively with Aboriginal
communities where we operate to
build an understanding of each other’s
aspirations and concerns.
We understand the relationship that
Aboriginal people have with their
natural environment and acknowledge
their diversity of cultures and traditions.
As a result we partner with Aboriginal
people on long-term strengthening of
the community by improving health,
early education, work readiness,
business development, employment
and heritage preservation.
To make sure the programs we
provide to Aboriginal communities are
sustainable, we work cooperatively
with community groups, local
governments, the wider community
and non-governmental organisations.
This collaborative approach played
a key role in the recent signing of a
Heads of Agreement with the Thalanyji
People for our Wheatstone Project and
native title agreements with the Kuruma
Marthudunera people and Yaburara
Mardudhunera people for the Gorgon
Project’s domestic gas pipeline.
The agreements reflect our
commitment to working in partnership
with Aboriginal communities where
we operate to build a better, stronger
future, for generations to come.
Partnering with the Community
Chevron Australia | 17
Chevron Australia is a strong supporter of the V Swans Active program, a sporting program that delivers education outcomes in the Onslow community.
One of the welding firing lines set up on Barrow Island as part of the pipeline installation process.
Importantly, the project is creating opportunities for employment and local
businesses and improving energy security for at least the next 40 years.
The complexity and sheer scale of the Gorgon Project is unprecedented. It is one
of the world’s largest natural gas projects and the largest single natural resource
gas project in Australia. The world-class project includes the development of
the Greater Gorgon Area gas fields, located about 130 kilometres off the north-
west coast of Western Australia, which contain about 40 trillion cubic feet of gas
resources.
Developed to meet the growing demand for gas in Asia it will also increase the
supply of domestic gas to WA by around 30 percent.
We are currently constructing a three-train 15 MTPA LNG plant on Barrow Island
and a domestic gas plant with the capacity to provide 300 terajoules per day to
Western Australia.
The Gorgon Project is operated by an Australian subsidiary of Chevron and
is a joint venture of the Australian subsidiaries of Chevron (approximately 47
percent), ExxonMobil (25 percent) and Shell (25 percent), Osaka Gas (1.25
percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent).
First gas is on schedule for 2014 with domestic gas expected to begin the
following year. The LNG will be loaded off via a four-kilometre causeway and
loading jetty for transport to international markets.
Chevron is committed to preserving the environmental values of Barrow Island
where we already have more than 45 years experience of successfully managing
operations.
Gorgon ProjectDeveloping an Australian Icon
The Chevron-operated $43 billion Gorgon Project will set new benchmarks in the energy
industry and is creating history in Western Australia.
It is one of the world’s largest natural gas projects and the largest single resource project in Australia.
Chevron Australia | 19
Gorgon Project Snapshot
• Annual production of 15 million
tonnes of LNG and 300TJ/d of
domestic gas.
• About 10,000 direct and indirect
jobs during peak, with more than
3,500 direct and indirect jobs
throughout the life of the project.*
• About $33 billion for the purchase
of local goods and services.*
• About $40 billion to the Australian
Government’s revenue.*
• About $64 billion to the Australia’s
Gross Domestic Product.*
* According to independent research group ACIL Tasman (based on 30 years of operations and an annual production of 15 million tonnes of LNG).
20 | Chevron Australia
GorgonProject
Our rigorous environmental management on Barrow island has received
international recognition and clearly demonstrates that conservation and
development can successfully co-exist.
The site of the Gorgon Project has been carefully chosen to avoid areas of
particular conservation significance. The 300 hectare footprint represents about
1.3 percent of Barrow Island’s uncleared land mass.
Minimising the environmental impact and laydown area on Barrow Island is a
key focus for the Project, and construction and commissioning of the Gorgon
Project’s facilities has been staggered to reduce the area used and the work
undertaken directly on the island. This also helps us manage the number of
personnel working on Barrow Island to safeguard the island’s strict quarantine
program.
The Gorgon Project will be one of the most greenhouse gas efficient LNG
developments in the world. By taking the naturally occurring carbon dioxide found
within the gas reservoirs and injecting it more than two kilometres underground,
the Gorgon Project will reduce its overall emissions by about 40 percent or by
some 3.4 to 4 million tonnes per annum.
The Gorgon Project will be one of the most greenhouse gas efficient LNG developments in the world.
GorgonProject
Set to be one of the largest commercial-scale carbon dioxide injection projects
in the world, it will position Australia as a world-leader in this technology and
make an important contribution to managing new global greenhouse gas
emissions. About $2 billion will be invested in the design and construction of
the carbon dioxide injection project.
In addition, we have also been engaging heavily with local communities, who
will benefit greatly from the Gorgon Project. In fact, the Project will provide
opportunities and economic benefits on a scale never seen before in Australia.
The first 30 years of the initial project scope is expected to provide a $64
billion boost to Australia’s Gross Domestic Product and direct and indirect
employment of about 10,000 people at peak construction.
It is expected that $33 billion will be spent on Australian goods and services,
providing additional flow-on effects through the economy*.
* According to independent research group ACIL Tasman (based on 30 years of operations and an annual production of 15 million tonnes of LNG).
Chevron Australia | 21
The Gorgon Project will also utilise the latest in deepwater energy development and break new ground in technology development and application.
22 | Chevron Australia
GorgonProject
Global Recognition for the Gorgon Carbon Dioxide Injection ProjectThe Gorgon carbon dioxide injection project was formally recognised by the
international Carbon Sequestration Leadership Forum.
The Australian Government has committed $60 million to the Gorgon Project as
part of the Low Emissions Technology Demonstration Fund.
To mark the recognition of the injection project, Chevron Australia Managing
Director Roy Krzywosinski was joined on the Gorgon plant site on Barrow Island
by the Australian Prime Minister, The Honourable Julia Gillard MP; the Minister
for Resources, Energy and Tourism, the Hon. Martin Ferguson AM MP; the US
Ambassador His Excellency Jeffrey Bleich; and Chief Executive Officer, Global
Carbon Capture Storage Institute, Nick Otter.
(Left to Right) US Ambassador His Excellency Jeffrey Bleich; Australian Prime Minister, The Honourable Julia Gillard MP; Minister for Resources, Energy and Tourism, The Honourable Martin Ferguson AM MP and Chevron Australia Managing Director Roy Krzywosinski mark the recognition of Gorgon’s Carbon Dioxide Injection Project with a trip to Barrow Island.
By taking the naturally occurring carbon dioxide found within the gas reservoirs and injecting it more than two kilometres underground, the Gorgon Project will reduce its overall emissions by about 40 percent or by some 3.4 to 4 million tonnes per annum.
GorgonProject
Quarantine on Barrow Island
Chevron Australia | 23
The Gorgon Project’s quarantine
management system is one of the
most comprehensive of its kind in
the world. It pioneers a new, risk-
based quarantine approach, with an
interrelated set of more than 300
procedures, specifications, checklists
and guidelines and is the largest non-
government quarantine initiative ever
undertaken. It is based on our existing
and highly successful quarantine
management system on Barrow
Island and has been recognised by the
Western Australian Environmental
Protection Authority as “likely to be
world’s best practice”.
Developed and refined in consultation
with the broader scientific community,
specialist environmental consultants
and relevant government regulatory
agencies, the nature of the
quarantine management system
demonstrates our commitment to the
biodiversity in and around Barrow
Island. The overarching aim of the
quarantine strategy is to facilitate the
construction and operation of a gas
processing facility on Barrow Island
while simultaneously protecting the
conservation values of the island.
In 2011 Chevron received the
Australian Petroleum Production
and Exploration Association (APPEA)
Environment Award, for the second
consecutive year, in recognition
of its comprehensive quarantine
management system for the Gorgon
Project.
Equipment undergoing the strict quarantine requirements at the Dampier Supply Base wash-bay before setting off to Barrow Island.
We are committed to safeguarding Barrow Island’s conservation values and consider an effective quarantine management system to be at the core of that commitment.
Chevron Australia
24 | Chevron Australia
The Wheatstone project will become the first LNG hub in Australia used by third party gas providers.
Wheatstone ProjectA New Source of Vital Energy
The Wheatstone Project is hot on the heels of Gorgon and will become another iconic
resource project for Australia.
Initially, we will construct two LNG trains, with a combined capacity of 8.9 mtpa,
and a domestic gas plant at Ashburton North in Western Australia. Eventually
the project will have the capacity to produce up to 25 mtpa of LNG and
associated domestic gas.
Final endorsement of the world-class Wheatstone Project followed an
exhaustive three-year environmental review and assessment process, which
demonstrated that the Project could be developed in an environmentally
responsible manner.
The Project will become the first LNG hub in Australia used by third party gas
providers, further increasing the supply for domestic gas.
Chevron is the operator of the Wheatstone onshore foundation project (73.6
percent). The local subsidiaries of Apache Corporation (13 percent), Kuwait
Foreign Petroleum Exploration Company (KUFPEC, 7 percent) and Shell (6.4
percent) have become equity participants.
Following a final investment decision from the joint venture participants, the
first two LNG trains are expected to be supplied with gas from the Chevron
operated Wheatstone and Iago fields (Chevron 92 percent and Shell 8 percent
of the unit). Apache and KUFPEC will also bring gas to Wheatstone from their
Julimar and Brunello fields.
Chevron Australia | 25
Wheatstone Snapshot
• Wheatstone was discovered
in 2004 and the project was
officially announced in 2008.
• The foundation phase of the
Wheatstone Project consists
of two LNG processing trains
with a combined capacity of
8.9 million tonnes per annum
(MTPA), a domestic gas plant
and associated offshore
infrastructure including the
processing platform, subsea
equipment, drilling and an
export trunkline.
• Eventually the project will have
the capacity to produce up to
25 MTPA of LNG and associated
domestic gas.
• The project will become the
first LNG hub in Australia used
by third party gas providers,
further increasing the supply for
domestic gas.
• First gas is planned for 2016.
26 | Chevron Australia
WheatstoneProject
Located about 225 kilometres south of Chevron’s gas resources in the Indian Ocean,
the site was chosen following a rigorous screening and public consultation process,
which considered a broad range of environmental, social and engineering factors.
We anticipate that the project will offer many benefits to local businesses
and suppliers.
There is expected to be an estimated 6,500 direct and indirect jobs, of which around
3,500 are construction jobs.
Over the first 30 years of the two-train foundation development, it is estimated there
will be government revenues of about $20 billion and more than $17 billion is expected
to flow to Australian businesses*.
The Wheatstone Project represents tremendous growth opportunities to the local
community and we continue to work with local industries, key government bodies,
Indigenous and community groups to maximise the project’s benefits and reduce any
potential impacts.
In conjunction with the Gorgon Project, the Wheatstone Project cements our position
as an expanding and reliable supplier of natural gas in the 21st Century.
The Wheatstone Project will generate an estimated 6500 direct and indirect jobs and result in more than $17 billion being spent on Australian goods and services*.
* According to independent research group ACIL Tasman.
WheatstoneProject
Chevron Australia | 27
Graphic showing the proposed materials
offloading facility, product loading and
onshore plant for the Wheatstone Project.
Graphic showing the proposed materials offloading facility, product loading and onshore plant for the Wheatstone Project.
OffshoreOffshore facilities will access and partially
process gas and associated condensate
and deliver it onshore for further
processing. The Project’s key features are:
• Well infrastructure and subsea
installations.
• A processing platform in 73 metres of
water, 225 kilometres from the coast.
• A trunkline to transport gas and liquids
from the platform to the onshore
processing facility at Ashburton North.
OnshoreOnce onshore, the gas and condensate
will be processed. The initial onshore
component includes:
• A slug-catcher to separate the gas
and liquids.
• An initial two-train LNG processing
plant.
• A domestic gas processing plant.
Processing the Wheatstone GasThe Wheatstone Project requires the installation of gas and condensate
gathering, processing and export facilities offshore and onshore.
• LNG and condensate storage.
• Marine facilities including a shipping
channel, turning basin, materials
offloading facility and export jetty.
• An access road to the site as well as
a domestic gas pipeline connecting
to the Dampier-to-Bunbury Natural
Gas Pipeline.
Safety is a focus on Barrow Island.
Striving for ExcellenceAchieving World-class Performance
We place great importance on protecting our people and the environment and on
efficiently maintaining and operating our facilities. Our ‘Operational Excellence’ (OE)
Management System is a comprehensive, proven means for the systematic management
of process safety, personal safety and health, environment, reliability and efficiency
to achieve world-class performance.
The tenets are:
• Always operate within design and
environmental limits.
• Always operate in a safe and
controlled condition.
• Always ensure safety devices are
in place and functioning.
• Always follow safe work practices
and procedures.
• Always meet or exceed
customers’ requirements.
• Always maintain integrity of
dedicated systems.
• Always comply with all applicable
rules and regulations.
• Always address abnormal
conditions.
• Always follow written procedures
for high-risk or unusual situations.
• Always involve the right people in
decisions that affect procedures
and equipment.
Our commitment to OE is embodied in The Chevron Way value of “Protecting
People and the Environment”, which places the highest priority on the health and
safety of our workforce and the protection of our assets and the environment.
We approach the five areas of OE as one priority, as success in each area
helps ensure success in the others, and, ultimately, this success becomes a
powerful driver for robust business performance. Safe, reliable, efficient and
environmentally sound operations make good business sense, and we strive to
complete every task the right way, every time.
Tenets of Operation
We are fully aware that OE requires constant attention to countless details and
human factors. Our safety culture is based on 10 Tenets of Operation, a code
of conduct that must be adhered by our employees and contractors and that is
reinforced by our supervisors and managers. The tenets are based on two key
principles:
1. Do it safely or not at all.
2. Thereisalwaystimetodoitright.
The tenets address a wide range of behaviour-based fundamentals. For
example, employees and contractors must always operate within the design and
environmental limits of their facilities, with safety devices in place and functioning
In addition, the tenets ensure we always involve the right people — those most
knowledgeable, experienced or familiar — in decisions affecting safety procedures
and equipment.
Chevron Australia | 29
30 | Chevron Australia
WheatstoneProject
The world has produced about one trillion barrels of oil to date. This production
is expected to double over the next century or so from conventional proved
reserves and undiscovered conventional oil. For more than a century, oil and
petroleum products have powered the world, mostly as motor fuels, and demand
is expected to grow over the long term.
Both Barrow Island and Thevenard Island islands are located off the north-west
coast of WA and play an integral role in delivering a reliable source of energy for
Australia. We have been producing crude oil from Barrow Island – a Class A Nature
Reserve – for more than 45 years. Rated as one of the most important wildlife
refuges in the world, we have maintained Barrow Island’s ecological balance.
Thevenard Island is the hub from which crude oil from six Chevron-operated
offshore petroleum reservoirs – Saladin, Roller, Skate, Yammaderry, Cowle and
Crest – is processed and readied for shipment by ocean tankers to Australian
refineries. The first oil from Thevenard Island operations flowed in 1989 and
subsequent fields have been brought into production in a staged development.
More than 140 million barrels of oil have been processed through these facilities.
WA Oil OperationsFuelling the Future
We have an exceptionally strong global oil portfolio, with key operations in important oil
regions. Our Barrow Island oil field is Australia’s largest onshore oilfield.
“ Since oil development started in the 1960s we have demonstrated that with proper management, development and conservation can co-exist on Barrow Island.”
Roy Krzywosinski Chevron Australia Managing Director
We have been producing crude oil from Barrow Island – a Class A Nature Reserve – for more than 45 years. More than 315 million barrels of oil have been produced from Barrow Island since 1967.
Chevron Australia | 31
Barrow Island Snapshot
• Currently5,600barrelsperdayofcrudeoilare
produced on the island.
• Wehold57.1percentoftheJointVenturepermits
covering Barrow Island and a 51.4 percent interest
in the permits covering Thevenard Island, with
participants Santos and ExxonMobil.
• Morethan315millionbarrelsofoilhavebeen
produced from the island and more than 108
tankers have been loaded – without a major
environmental incident – since 1967.
• Morethan900wellshavebeendrilledatBarrow
Island, including more than 480 oil production
wells, 260 water injection wells and various gas
producer and water disposal wells.
• Today,about446wellsareproducingoil,with
the majority of production coming from the
Cretaceous Windalia Formation, located about
800 metres below the surface.
• Optimisationofthewaterinjectionsystemis
arresting field production decline from seven
percent to two percent.
More than 315 million barrels of oil have been produced from Barrow Island since 1967.
32 | Chevron Australia
North West Shelf Venture
Chevron holds an equal one-sixth interest in the NWSV – currently Australia’s
largest resource project gas processing facility.
Since 1985 it has been WA’s largest producer of domestic gas, providing about
65 percent of the State’s total production. It accounts for more than 40 percent
of Australia’s oil and gas production and is a major producer of LNG, natural
gas, liquefied petroleum gas (LPG), condensate and crude oil. A proven reliable
supplier of clean energy to the Asia-Pacific region, it is well positioned to meet
global demand for LNG.
Located on the Burrup Peninsula near the Port of Dampier and the town of
Karratha in northern WA, the NWSV reserves are based on vast undersea natural
gas and crude oil resources. It is operated by Woodside on behalf of the other
joint venture participants, who have together invested more than $27 billion in
onshore and offshore oil and gas facilities.
The NWSV consists of production from five major oil and gas fields and a number
of smaller fields, including the North Rankin, Goodwyn, Perseus, Angel and
Energy Industry PartneringMeeting World Energy Needs Through Partnerships
We have a long history of partnering with other major resource companies on large-scale
projects. We are a foundation participant in both the North West Shelf Venture (NWSV) and the
Browse LNG Development.
Since 1984 the NWSV has been supplying gas for use in WA. Following the start of LNG production in 1989, it has safely delivered more than 3,000 LNG cargoes to customers around the world.
The Chevron operated North West Swan LNG vessel.
North West Shelf Venture Snapshot
• The NWSV accounts for more than
40 percent of Australia’s oil and gas
production.
• Our current net daily production
from the NWSV averages 26,000
barrels of crude oil and condensate,
5,000 barrels of LPG and 433
million cubic feet of natural gas.
• Production from the NWSV
accounts for about one percent of
Australia’s gross domestic product
and contributes more than $1 billion
each year in taxes and royalties.
• We have a 16.7 percent interest in
NWSV and operate the North West
Swan LNG vessel.
Echo Yodel natural gas fields and the Wanaea, Cossack, Lambert and Hermes
crude oil fields. The facilities include three fixed offshore platforms; one floating
production, storage and offtake vessel; and an onshore gas processing facility,
located near Karratha.
The onshore gas plant consists of five LNG trains, a domestic gas plant, LPG
production units and storage and loading facilities for LNG, LPG and condensate.
Browse LNG Development
Operated by Woodside, we hold between 16.67 and 20 percent of the two joint
ventures which collectively are known as the Browse LNG Development.
The three gas fields underpinning this development – Torosa, Brecknock and
Calliance – are located in the Browse Basin about 425 kilometres north of
Broome, in northern WA.
The Browse resources contain about 13 trillion cubic feet of dry gas and 280
million barrels of condensate. The proposed Browse LNG Development is a joint
venture between Woodside, Chevron, BHP Billiton, BP and Shell.
In April 2009, the Western Australian Government announced James Price Point
in the Kimberley as its preferred site for the processing of Browse gas resources.
The project entered front end engineering and design phase in 2011.
Energy Industry Partnering
Chevron Australia | 33
The NWSV consists of production from five major oil and gas fields and a number of smaller fields, including the North Rankin, Goodwyn, Perseus, Angel and Echo Yodel natural gas fields and the Wanaea, Cossack, Lambert and Hermes crude oil fields.
Chevron Australia
34 | Chevron Australia
A variety of career disciplines exist within Chevron.
Working at ChevronA World of Opportunity in Human Energy
With two large-scale projects positioned for growth, we are shaping Australia’s energy future
and offering outstanding career opportunities.
Our workforce is rapidly increasing with more than 3000 people expected to work for Chevron
Australia by the end of 2011. A Chevron career is not just a job. It’s an extraordinary opportunity
to help shape the future of energy.
We offer a truly global and collaborative work experience.
Our employees get to team up with some of the best and brightest people from
around the world using leading edge technology to create new and innovative
energy solutions.
We provide a world of opportunity, challenge and fulfilment where employees
can pursue goals, develop new skills, change career paths, and explore new
horizons.
A variety of career disciplines exist within the company, including business
support, commercial, drilling and completions, earth science, facilities
engineering, finance, health, environment and safety, human resources,
information systems, operations, petroleum engineering, project engineering
and supply chain management.
Pleasevisitchevronaustralia.comformoreinformationoncurrent
opportunities.
We provide a world of opportunity, challenge and fulfilment where employees can pursue goals, develop new skills, change career paths, and explore new horizons.
Chevron Australia | 35
36 | Chevron Australia
Aboriginal Employment
We are focused on delivering employment opportunities for Aboriginal
Australians. We have established a team dedicated to Aboriginal employment,
which is working with the community to ensure participation in Aboriginal
employment program design and delivery.
In recognition that education and employment are fundamental priorities for
Aboriginal people in the North West, we are providing a number of long-term
career and growth opportunities.
As part of this, we have implemented a range of initiatives, including the
appointment of a Karratha-based Senior Aboriginal Employment Adviser to
engage with job service providers and others to identify upcoming jobs and
potential candidates for those jobs.
We also actively encourage our contracting partners to support local
communities, which has led to many employing Aboriginal people.
WorkingatChevron
Diversity is a core value at Chevron. We value and demonstrate respect for the uniqueness
of individuals and the varied perspectives and talents they provide. We have an inclusive work
environment and actively embrace a diversity of people, ideas, talents and experiences. We
have an excellent reputation as a preferred employer and encourage a diverse workforce. As
our workforce continues to grow, we will continue to look for opportunities to promote diversity
as part of our overall strategy to be the global energy company most admired for its people,
partnership and performance.
Career Opportunities at Chevron
We put people at the centre of everything we do – from protecting the safety and
health of our people to helping them succeed. No matter where someone is on
their career path, we offer ongoing education and training to help them develop
their skills and expand their career.
Our training and development programs begin on a new recruit’s first day and
continue throughout their career.
Our compensation and benefits programs are designed to meet the diverse
needs of our employees. In addition to a salary that is competitive with other
major companies, we offer annual incentive awards when the company meets
its established goals, programs to help our people balance work and personal
responsibilities, educational assistance and other benefits.
“Early on I was told that basically
anything I wanted to do, Chevron
will try to accommodate. While
my background is geophysics and
geomechanics, my managers said that
if I liked, I could move into the drilling
area — something I never considered an
opportunity as it was not something I
had studied for. I don’t think there are
any bounds in terms of what we can do
at Chevron. In the Horizons program,
we’ve met with managers who have told
us about their career experiences, like
starting with a degree in geology and
then moving into Health, Environment
and Safety, then becoming a team
leader in an unrelated area. The
opportunities are endless here.”
Marie, Horizons Graduate Geophysicist
WorkingatChevron
Chevron Wins the 2010 WA Employer of the Year Award
We were named “Western
Australia Employer of the Year”
at the 2010 WA Training Awards.
The Awards acknowledge the
achievements of apprentices,
training and vocational students
and the contribution made to
training by trainers, training
organisations and employers.
As well as recognising our
excellence in training and
development, the win is a strong
reflection of our commitment to
helping our employees be the best
they can be.
“Working for Chevron really has
been everything I expected – very
rewarding, with plenty of challenges
and learning opportunities along the
way. As a member of the Horizons
program there is a strong focus on
technical and career development,
and on the job responsibilities are
only limited by your own willingness
to be proactive and get involved. The
importance of leading an active life
away from work is also valued highly.”
Jason, Graduate Petroleum Engineer
Chevron Australia | 37
38 | Chevron Australia
Conservationist Dr. Harry Butler on Barrow Island.
Our operations on Barrow Island are recognised as a model for the coexistence of
petroleum development and the protection of biodiversity.
Eminent naturalist and conservationist Dr Harry Butler has spent the past four
decades working closely with us to ensure we successfully operate on the island
without threatening the ecosystems, species and environmental qualities that
make the island unique.
We credit much of our worldwide reputation on the island to Dr Harry Butler’s
involvement in developing a world-class environmental management model.
The island’s 235 square kilometres of sparsely vegetated and arid landscape
is home to many plants and animals endangered or rare on the mainland. Our
stringent measures ensure that the 227 native plants, 54 reptiles and 110 types of
birds thrive alongside our oil field operations.
Employees and members of the community are involved in a variety of
biodiversity projects and scientific research programs on the island, such as
tracking the movement of flatback turtles, that help maintain the integrity of
the environment.
Protecting the EnvironmentAchieving Results – The Right Way
We place an extremely high value on protecting the environment and this leads to
successful oil and gas operations.
In helping to meet the world’s growing demand for energy, we do so with sound
environmental management and respect for the environments in which we operate.
Chevron Australia | 39
Barrow Island’s Class A Nature Reserve status has been maintained while being home to Australia’s largest operating onshore oilfield over the past 45 years.
Chevron Australia
40 | Chevron Australia
Barrow Island environmental program
Our operations on Barrow Island are recognised as a model for the coexistence of
petroleum development and the protection of biodiversity.
After more than 45 years of oil operations on the island and the production of
more than 315 million barrels of oil, the island’s biodiversity remains intact thanks
to our rigorous quarantine procedures and environmental management. The
wealth of flora and fauna on the island continues to flourish despite the presence
of Western Australia’s largest onshore petroleum operation.
Any activities with the potential to affect native vegetation are subject to
stringent controls to minimise disturbance, and where necessary, appropriate
rehabilitation is undertaken. The strict quarantine measures have carefully
protected the native species and ensured no invasive animals have become
established on the island.
We’re committed to seeing all of our operations and projects developed in an
environmentally responsible manner.
The Gorgon and Wheatstone Projects will both help maintain energy security
domestically and internationally and have the potential to reduce global
emissions by about 75 million tonnes per year – compared with the use of coal
for electrical power generation. In simple terms, this will have a similar impact on
global greenhouse gas emissions as removing all of Australia’s road transport and
civil aviation emissions.
After completing rigorous environmental impact assessments and management
processes for the Gorgon Project, we are implementing what has been learnt into
the current impact assessment for the Wheatstone Project.
Significantly, with Gorgon – Australia’s largest single resources project – we
have identified the opportunity to further reduce greenhouse gas emissions by
about 40 per cent through the underground injection of the carbon dioxide that
occurs naturally in the reservoir gas and that would otherwise be released into
the atmosphere.
With injection rates between three and four times greater than existing
commercial scale projects, Gorgon will position Australia as a world leader in the
application of carbon dioxide injection technology. Combined with current best
practice in plant design, the carbon dioxide will make the Gorgon Project one of
the world’s most greenhouse gas efficient projects and help Australia respond to
international concerns about greenhouse gas emissions.
And we’re privileged to be able to attract some of the best environmental
advisors and subject matter experts to work with us in both reducing our impact
and managing our environmental programs.
We’re committed to seeing all of our operations and projects developed in an environmentally responsible manner.
Chevron Australia
These programs cover the full range of environmental issues, including climate
change adaption, fauna monitoring and protection, waste reduction technology
selection and environmental inductions.
We share the concerns of governments and the community about climate change
and recognise that the use of fossil fuels to meet the world’s energy needs is a
contributor to increased greenhouse gases in the Earth’s atmosphere.
Natural gas is part of the solution to climate change, not part of the problem.
Natural gas produces almost 45 percent less CO2 than coal - providing a cost-
effective, environmentally sound approach to climate change.
Our Global Action Plan on Climate Change guides our overall thinking on a range
of associated strategies, including emissions reduction, efficiency improvements,
research investments and new business opportunities.
We believe that taking prudent steps now to lower greenhouse gas emissions is the right thing to do.
Chevron Australia | 41
Barrow Island’s biodiversity remains intact thanks to Chevron’s rigorous quarantine procedures and environmental management.
Chevron Australia
42 | Chevron Australia
Greenhouse gas partnerships and focus
We are a long-term supporter of research and demonstration of new low
emissions technologies.
As part of this we are a member of the Cooperative Research Centre for
Greenhouse Gas Technologies, one of the world’s leading collaborative research
organisations, which focuses on carbon dioxide capture and geological storage.
We are also a Foundation Member of the Global Carbon Capture and Storage
Institute, which aims to accelerate the commercial deployment of carbon capture
and storage projects to ensure their valuable contribution in reducing carbon
dioxide emissions.
Since 2004 we have been involved in the development of an Australian regulatory
framework for greenhouse gas storage. This has included membership of the
Stakeholder Reference Group assisting the Ministerial Council for Minerals and
Energy to develop the Australian Regulatory Guiding Principles for Carbon
Capture and Storage, and participating in the National Carbon Storage Taskforce.
We actively engage with the Australian and State Governments about policies to
address the risks posed by climate change and we have made a number of public
submissions to various inquires and reviews considering climate change policy.
These partnerships and investments in low emissions technology research
and demonstration will help assist the Australian community in adapting to the
challenges of operating in a low emissions future, for the benefit of all.
We actively engage with the Australian and State Government about policies to address the risks posed by climate change and we have made a number of public submissions to various inquires and reviews considering climate change policy.
Right – An Eastern Osprey on Barrow Island.
Barrow Island, Western Australia.
Chevron Australia
Chevron Australia | 43
ChevronAustraliaPtyLtdABN 29 086 197 757250 St Georges Terrace Perth Western Australia 6000Tel: +61 (8) 9216 4000 Fax: +61 (8) 9216 4140Email: [email protected] © 2011 Chevron Corporation. All rights reserved.
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