highlights of operations
Chevron is one of the largest oil producers in Nigeria and one of its largest investors.
In Nigeria, we operate under a joint-venture arrangement with the Nigerian National Petroleum Corporation (NNPC) for the onshore and offshore assets in the Niger Delta region.
Chevron also has extensive interests in multipartner deepwater operations. We operate the Agbami Field, one of Nigeria’s largest deepwater discoveries. We also have a nonoperated interest in the Usan Field.
exploration and production
Through Chevron’s principal subsidiary in Nigeria, Chevron Nigeria Limited (CNL), the company operates and holds a 40 percent interest in eight concessions in the onshore and near-onshore regions of the Niger Delta under a joint-venture arrangement with the NNPC. Chevron also does business through other subsidiaries in Nigeria.
In 2017, Chevron’s net daily production in Nigeria averaged 207,000 barrels of crude oil, 223 million cubic feet of natural gas and 6,000 barrels of liquefied petroleum gas (LPG).
Chevron has interests, ranging from 20 to 100 percent, in three operated and six nonoperated deepwater blocks in Nigeria.
Chevron operates the Agbami Field, which lies 70 miles (113 km) off the coast of the central Niger Delta region and spans 45,000 acres (182 sq km). Discovered in 1998, the Agbami Field is at a water depth of approximately 4,800 feet (1,463 m). Chevron has a 67.3 percent interest in the field. In 2017, net daily production averaged 119,000 barrels of crude oil and 12 million cubic feet of natural gas.
Agbami is a subsea development with wells tied back to a floating production, storage and offloading (FPSO) vessel. The first two phases of infill drilling, Agbami 2 and Agbami 3, are complete. To offset field decline, a third phase of infill drilling has begun.
Chevron has a 30 percent nonoperated working interest in the Usan Field, in 2,461 feet (750 m) of water, 62 miles (100 km) off the coast of the eastern Niger Delta region. Net daily production in 2017 averaged 27,000 barrels of crude oil and 4 million cubic feet of natural gas.
The Aparo Field and the third-party-owned Bonga SW Field share a common geologic structure and are planned to be developed jointly. The structure lies in 4,300 feet (1,311 m) of water, 70 miles (113 km) off the coast of the western Niger Delta region. The proposed development plan involves subsea wells tied back to an FPSO vessel. Work continues on optimizing project scope and cost.
Chevron operates and has a 55 percent interest in Oil Mining Lease (OML) 140. The block lies in roughly 8,000 feet (2,438 m) of water, 90 miles (145 km) off the coast of the western Niger Delta region, and includes the Nsiko discoveries. Acquisition of 3-D seismic data is planned for OML 140 in 2018.
In 2017, the company continued to evaluate development options for the multiple discoveries in the Usan area, including the Owowo Field.
Chevron is involved in natural gas projects in the western Niger Delta and Escravos areas, including the Escravos Gas Plant (EGP), the Escravos Gas-to-Liquids (EGTL) facility and the Sonam Field Development Project.
CNL operates the EGP, which has a total capacity of 680 million cubic feet per day of natural gas and LPG and a condensate export capacity of 58,000 barrels per day. Chevron and the NNPC also operate the EGTL facility, a 33,000-barrel-per-day gas-to-liquids plant.
The Sonam Field Development Project is designed to use the EGP facilities to deliver 215 million cubic feet of natural gas per day to the domestic gas market and produce a total of 30,000 barrels of liquids per day. Production at the 40 percent-owned and operated project began in June 2017 and is expected to continue ramping up in 2018.
With a 36.7 percent interest, Chevron is the largest shareholder in the West African Gas Pipeline Company Limited, which owns and operates the 421-mile (678-km) West African Gas Pipeline. The pipeline supplies customers in Benin, Ghana and Togo with Nigerian natural gas for power generation and industrial applications. It has the capacity to transport approximately 170 million cubic feet of natural gas per day.
in the community
Chevron takes its role as a corporate citizen in Nigeria seriously and is active in many projects that promote health, education and economic development.
responding to needs in the niger delta
In 2005, CNL adopted the Global Memorandum of Understanding as a new approach to community engagement in the Niger Delta, giving communities a greater role in managing their development through Regional Development Committees. Since then, the NNPC/Chevron joint venture has spent more than $118 million on roughly 600 programs that have provided scholarships; built new schools, medical facilities and housing; and supported agriculture development and infrastructure improvements.
In 2011, Chevron announced its $50 million alliance with the U.S. Agency for International Development and the to support a portfolio of programs designed to address socioeconomic challenges in the Niger Delta region. The Foundation for Partnership Initiatives in the Niger Delta (PIND) was incorporated in Nigeria to implement and support these programs. In 2014, Chevron committed an additional $40 million in funding to the NDPI through 2019.
NDPI and PIND complement Chevron’s existing social investment efforts by focusing on one strategic objective: achieving a peaceful, enabling environment for equitable growth in the Niger Delta.
fighting HIV/AIDS in Nigeria
In 2008, we directed $5 million of the $30 million we contributed to the Global Fund to Fight AIDS, Tuberculosis and Malaria to Nigeria’s National Agency for the Control of AIDS in support of AIDS treatment programs. In 2015, Chevron committed an additional $5 million to Nigeria through the Global Fund to support prevention of mother-to-child transmission (PMTCT) of HIV.
In 2012, Chevron partnered with Born Free Africa to help develop capacity within state ministries of health. The partnership supported PMTCT of HIV activities in Nassarawa, Bayelsa and Rivers states – helping equip more than 670 health facilities.
That same year, Chevron announced a partnership with the nongovernmental organization (NGO) Pact to support PMTCT efforts. In 2014, we committed an additional $1.7 million to the PROMOT project, a PMTCT initiative in Bayelsa state that works with community-based organizations and local governments to provide education and testing services. More than 53,600 pregnant women have been tested for HIV and received counseling. The second phase of the PROMOT project was launched in 2016 when Chevron provided $1.43 million to support Pact’s two-year PMTCT program in Bayelsa state.
supporting public health
Chevron’s Riverboat Clinic provides a mobile health service to communities along the creeks and islets of the Escravos and Benin rivers. The clinic has been providing free treatment since it was launched in 2001, serving, on average, more than 35,000 people per year.
Our Roll Back Malaria initiative, which was launched in 2006, provides financial and volunteer support to pregnant women and children under age 5. The program served more than 60,000 people in 2017.
To support early diagnosis and treatment of tuberculosis and other chest and lung diseases, Chevron and its Agbami partners have donated 25 chest clinics to hospitals since 2008. The clinics are equipped with X-ray units, consulting rooms, laboratories and wards.
In 2014, Chevron donated the Molecular Biology Research Laboratory to the University of Lagos Teaching Hospital. The lab is equipped with tools to diagnose, manage and treat people with genetic abnormalities. Since opening, the lab has conducted more than 1,300 DNA extractions and amplifications – processes that help diagnose diseases and conditions. In 2014, the lab also helped detect the first case of Ebola in Nigeria.
In 2009, Chevron and its Agbami partners initiated the Medical and Engineering Professionals scholarship program. More than 16,000 college students have benefited from the program. Of those, 456 have graduated with first-class honors.
We also support the Scholarship for the Blind program, which aids visually challenged students in the states where we operate.
Chevron and its deepwater partners have supported secondary schools in Nigeria by building and equipping 33 science laboratories and 18 hybrid – electronic and conventional – libraries. These initiatives have contributed to the education of more than 16,000 students across 33 states.
care for the environment
In the Lagos area, Chevron funds the Lekki Conservation Centre, a 190-acre (0.8-sq-km) sanctuary that protects the flora and fauna of the Lekki Peninsula by promoting sound environmental practices through research and education. The sanctuary is the only one of its kind in the area.
record of achievement
Chevron began doing business in Nigeria in 1913, when Texaco® products were first marketed in the country.
Following the Nigerian Indigenization Decree of 1978, Chevron divested 40 percent of its shareholdings in Chevron Oil Nigeria PLC to the Nigerian public while retaining 60 percent equity.
In 1996, we built our state-of-the-art storage terminal and loading facility in Apapa. The facility has a 103,000-barrel capacity.
Our energy exploration and production work in Nigeria began more than 50 years ago.
In 1963, American Overseas Petroleum Ltd. – which later became Texaco Overseas (Nigeria) Petroleum Co. – discovered oil at the Koluama Field, offshore Nigeria. In that same year, CNL started drilling near the Escravos River and found the Okan Field.
Discovered in 1998, the Agbami Field is one of the largest deepwater finds in Nigeria’s history.
health, environment and safety
In 2004, Chevron upgraded the Okan Platform, installed in 1963, and other mature platforms to improve pollution prevention measures and safety systems.
Chevron is working across its operations to eliminate routine gas flaring and venting in line with company requirements and local regulations.
CNL has received several awards and honors:
- In 2003, CNL won the U.S. State Department’s Award for Corporate Excellence. The company was praised for its work in Nigeria for, among other things, the Riverboat Clinic, our HIV/AIDS prevention efforts and our airlift of more than 2,000 community members to safety in 2003 during ethnic conflict in the Niger Delta.
- The Nigerian Conservation Foundation honored CNL in 2002 with its Award for Environmental Excellence.
- In 2014, the Chartered Institute of Personnel Management of Nigeria presented CNL with its Human Resources Best Practice Award, in the Overall and Oil and Gas categories.
- Chevron was given an Award of Appreciation from the Tertiary Education Trust Fund in recognition of contributions made to improve the quality of education in Nigeria.
- In 2012, CNL was named Best Community Development Company of the Year by the National Association of Energy Correspondents, a group of journalists covering the energy sector.
- For CNL’s contributions to the development of Nigeria’s accountants, the Institute of Chartered Accountants of Nigeria gave CNL its Merit Award in the Corporate category.
- Change-a-Life Foundation, a Lagos-based NGO, honored CNL with its Heroes of Our Community Award for our pioneering actions in providing cutting-edge equipment and training for the detection and management of the Ebola virus in Nigeria.
- In 2015, Businessday, Nigeria’s leading business newspaper, named Chevron one of the 100 Most Respected Companies in Nigeria for our meaningful contributions to the socioeconomic development of the country.
- In 2016, CNL was given an Outstanding Corporate Tax Payer Award by the Delta state government.
- In 2016, the Nigerian Environmental Society conferred on CNL the Green Label Award in recognition of the company’s sustainable development projects, good environmental management and conservation practices.
- At the Sustainability, Enterprise and Responsibility Awards ceremony in Lagos in 2016, CNL was named the Best Company in Promotion of Good Health and Well-Being in recognition of the company’s contributions to the success of the PROMOT program in Bayelsa state.
- Chevon was named Best Performing Upstream International Company in Social Contribution and Top Domestic Gas Producer for 2016/2017 by Nigeria’s Federal Ministry of Petroleum Resources.
- In 2018, The Guardian newspapers and media organization D'Alphaxristi Limited named Chevron Nigeria’s Best Company in Media Relations in the oil and gas industry.
Chevron is committed to the Nigerian government’s policy on local content development. CNL fosters strong business partnerships with local service providers and product suppliers and works to increase their professional capabilities. CNL’s Local Community Content Development team promotes commerce with local businesses.
2 Chevron Drive, Lekki Peninsula
Private Mail Bag 12825
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.