highlights of operations
Through our subsidiaries Chevron Brasil Upstream Frade Ltda. and Chevron Brasil Lubrificantes Ltda., Chevron’s work in Brazil continues to advance.
Today, the company has interests in two deepwater exploration projects in Brazil’s Campos Basin – the operated Frade project and the nonoperated Papa-Terra project. Since 2009, Chevron has invested significant time and resources developing the Frade Field. In 2017, we continued development of the Papa-Terra project. We also have an interest in the deepwater CE-M715 Block in the Ceara Basin, offshore equatorial Brazil.
Chevron owns lubricant and grease plants in Brazil as well as an Oronite® additive facility that produces a range of fuel and lubricant additives.
Throughout Chevron’s long history in the country, we have worked closely with our partners to contribute to the community, with a focus on programs that generate economic and educational opportunities for women and youth.
exploration and production
Chevron holds working interests in the deepwater Frade and Papa-Terra fields in the Campos Basin and in Block CE-M715 in the Ceara Basin, northeast of Brazil. In 2017, net daily production averaged 12,000 barrels of crude oil and 4 million cubic feet of natural gas.
Production from Frade
Chevron operates and holds a 51.7 percent interest in the Frade project. The field lies in a water depth of about 3,700 feet (1,128 m), approximately 230 miles (370 km) northeast of Rio de Janeiro. Frade is a subsea development with wells tied back to a floating production, storage and offloading (FPSO) vessel. The company is making progress on a redevelopment plan.
Development in Papa-Terra
Chevron holds a 37.5 percent nonoperated interest in Papa-Terra in the Campos Basin.
The Papa-Terra Field lies in approximately 3,900 feet (1,189 m) of water. The project, operated by national oil company Petrobras, includes an FPSO vessel and a tension-leg well platform (TLWP) and has a designed total daily capacity of 140,000 barrels of crude oil and 35 million cubic feet of natural gas. First production at Papa-Terra was announced in 2013. First production from the TLWP was announced in 2015. The remaining scope of the development plan is being evaluated. Drilling operations restarted at the end of 2017.
Exploration in the Ceara Basin
Chevron is the operator of and has a 50 percent interest in Block CE-M715 in the Ceara Basin, offshore equatorial Brazil. The deepwater block covers 40,000 net acres (163 sq km). In second quarter of 2017, we received final 3-D seismic data which is being evaluated.
marketing and retail
Chevron considers Brazil a key growth market for lubricants. The company owns and operates a lubricants manufacturing plant in Rio de Janeiro that produces 1 million barrels of lubricating oils per year. Another plant, in São Paulo, produces 15,000 tons of industrial greases and 35,000 barrels of coolants per year for the Brazilian market.
Our Havoline® and Ursa® lubricants are recognized as brand leaders in the market. Chevron sells its lubricants in Brazil under the Texaco® brand through a network of authorized distributors and directly to commercial and industrial customers.
Customer satisfaction, improved performance and quality management are important to Chevron. Chevron Brasil Lubrificantes Ltda. has been awarded certification from the International Organization for Standardization (ISO) for the high-quality design, development and manufacture of oils, coolants, brake fluid, greases and lubricants. The Brazilian lubricants plant also is ISO certified.
Chevron’s subsidiary owns and operates a manufacturing plant in Maua, near São Paulo, and maintains a sales office in Rio de Janeiro. Oronite is a leading developer, manufacturer and marketer of performance additives for fuels and lubricating oils.
in the community
Chevron’s social investment strategy is aimed at strengthening local communities through programs that deliver measurable and sustainable results and that are focused on three core areas: economic development, health and education. Since 2012, Chevron Brazil has invested $7 million in social programs that have benefited 29,000 people in Brazil.
Starting in 2018, the company will focus its social investment activities in São João da Barra in Rio de Janeiro State, a city located near the Frade Field’s shore operations. The goal is to support public school students, fishing communities and the local population, through structured programs specifically designed to address issues raised by the municipality.
record of achievement
Chevron’s presence in Brazil dates to 1915, when the company sold products under the Texaco brand. Today, Chevron’s business in the country includes offshore exploration and production of oil and natural gas, through Chevron Brasil, the manufacture and distribution of additives, through Chevron Oronite, and the marketing of Texaco lubricants.
Chevron began investing in oil and natural gas exploration and production in 1997 after the Brazilian government decided to open the sector to private companies. Currently, Chevron participates in eight blocks in Brazil, three as operator.
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.