Heavy Oil

Unlocking the Potential

Today, heavy oil comprises 50 percent of known oil resources
but represents just one in ten barrels of production. New global
investment could double output by 2025, and as the worlds
premiere heavy oil developer, Chevron stands ready to help
develop this 8 trillion-barrel treasure.
Heavy Oil: Unlocking the Potential
with Chevron
With our unique expertise, specialized technologies, continuous investment
in long-term partnerships and a clear strategy to optimize the heavy oil value
chain, no company is better positioned than Chevron to unlock this global
potential.
We produce more than 500,000 barrels per day of heavy oil across our
global operations nearly 20 percent of our total daily net production and
our expertise in thermal technologies accounts for half of those barrels. Our
California and Indonesia steamood operations lead the industry in recovery
and cost efciency and we are pioneering carbonate steamood in the
Middle East. With our expertise in heavy oil, were a top producer and upgrader
of extra-heavy oil in Venezuela, where we work to boost future production with
steam. We are a partner in a major extra-heavy oil mining and upgrading project
in Canada. And as a leader in offshore and deepwater development worldwide,
were unlocking heavy oils offshore potential across our global operations,
including deepwater reservoirs in Angola and Brazil.
Chevron integrates heavy oil development with oil marketing, upgrading and
renery capabilities. Building on a heritage of leadership in rening, were
strategically investing in key facilities in North America and Asia to handle
the requirements of processing heavy crude. Continuing our history as a top
developer and licenser of heavy oil processing technologies, our company is
always seeking new ways to make valuable fuels from heavy oil feedstocks.
As the proven heavy oil partner of choice, we continually invest in upstream
and downstream research and development, and we transfer knowledge and
technology to help partners grow, maximize returns, create jobs and build local
economies. With a global commitment to safe and clean operations, we work
constantly to protect communities and the environment. Chevron is committed
to building long-term heavy oil partnerships to help countries commercialize
their unique assets and deliver essential new energy supplies to the world.
Heavy Oil | 1
Above: Chevron is automating and stream-
lining operations with the Master Schedule
Visualizer and other improvements under
the companys global i-feld initiative.
Left: In 1985, Chevron transferred steam-
ooding technology to Indonesias Duri
Field, one of the worlds largest thermal
projects, which has produced more than
2 billion barrels of heavy oil. Building
upon decades of experience and partnership
with the government of Indonesia, the
2000-well North Duri expansion targets
over 100 million incremental barrels.
Cover: Expansion loops in steam-distribu-
tion networks in Chevrons heavy oil opera-
tions in California, where the company has
over 50 years of experience and continues to
advance its industry-leading capabilities in
thermal production.
Throughout this publication, heavy oil is dened as 22 degrees API gravity or lower; with extra-heavy
10 degrees or lower.
Chevrons years of experience
advancing thermal heavy oil
technologies and systems.
50+
Heavy Oil | 1
Chevrons World of Heavy Oil
World-Class Thermal
Production
Kern River, Midway Sunset,
other elds, California, U.S.;
Duri Field, Indonesia
Heavy Oil Training,
Research & Development
Chevron International Heavy Oil
Center, Bakerseld, and Richmond
Technology Center, Richmond,
California, U.S.
Horizontal Steam
Injection Test Facility
San Joaquin Valley, California, U.S.
Solar Steam Generation
Test Facility
San Joaquin Valley, California, U.S.
Heavy Oil i-eld
San Joaquin Valley, California, U.S.
Heavy Oil Reservoir
Steam Fracturing
Projects
Cymric and Midway elds,
California, U.S.
10.
Large-Scale Carbonate
Reservoir Steamood
Pilot
Wafra Field, onshore Partitioned
Zone, located between the
Kingdom of Saudi Arabia and
State of Kuwait
Extra-Heavy Oil Surface
Mine & Upgrader
Athabasca Oil Sands Project,
Muskeg River, and Scotford
Upgrader, Alberta, Canada
12.
Extra-Heavy Oil Horizontal
Cold Production & Upgrader
Petropiar, Hamaca project,
Orinoco region, Venezuela
Heavy Oil Water Flooding
Petroboscan, Boscan Field,
Venezuela
14. Heavy Oil Production
Doba Field, Chad
Heavy Oil Field Appraisal
Petroindependencia, Orinoco
region, Venezuela
Offshore Production
Bohai Bay, China; Alba, Captain
and Clair elds, United Kingdom;
planned Hebron Field develop-
ment, Newfoundland, Canada
4.
Deepwater Production
Frade and Papa Terra elds,
Brazil; Kuito Field, Angola
Specialized Heavy
Crude Oil Rening
Pembroke Renery, U.K.;
processes high-acid, high-
medium-heavy crudes from
Chevrons Captain and Clair
elds and other high-acid
North Sea crudes
Heavy Oil Rening
El Segundo, California;
Pascagoula, Mississippi; and
Salt Lake City, Utah, U.S.;
Yeosu, South Korea
Heavy Oil Marketing,
Trading, and Research &
Development
Houston, Texas, U.S.
2 | Heavy Oil Heavy Oil | 3
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Since being one of the pioneers of heavy oil eld steamooding
more than 50 years ago, Chevron has mastered thermal enhanced
recovery, a technology proven to dramatically increase recoverable
reserves. Like highly protable resource factories, the companys
thermal projects continually apply creative solutions to improve
performance and build a persistent, long-term competitive advantage.
California, Indonesia thermal
Chevrons sandstone-reservoir
steamoods in Kern River, California,
U.S., and Duri, Indonesia, have each
produced more than 2 billion barrels
of oil, with recovery rates up to 75
percent, compared to less than 10
percent without steam. Anchored by
large cogeneration plants producing
both power and steam, these special-
ized developments include thousands
of shallow wells for steam injection,
production and reservoir monitoring.
Reducing costs with technology
To offset high development and oper-
ating costs of thermal projects, Chevron
employs continuous 3-D reservoir
modeling and characterization, well
surveillance, advanced steam-distri-
bution systems, and proprietary heat-
management expertise. Super-efcient,
optimized work ows and disciplined
maintenance of both underground and
surface facilities maximize reliability.
These technologies minimize energy
expense and precisely place both wells
and heat in the oil zones, creating a
distinct competitive advantage for
Chevron as demonstrated by our
industry-leading steam-oil ratios.
Chevron: The Thermal Enhanced
Recovery Leader
4 | Heavy Oil
In collaboration with the Kingdom of
Saudi Arabia and the State of Kuwait,
Chevron is conducting the rst large-
scale test of a conventional steamood
in a carbonate reservoir in the Wafra Field,
onshore Partitioned Zone. Wafra could
add 100 million barrels of reserves for
every 1 percent increase in recovery
from thermal stimulation.
Cold production technologies
Chevron produces heavy oil both
onshore and offshore using cold
technologies where steam methods
are yet to be proven. In Venezuela,
powerful pumps and extra-long
horizontal wells are required to tap
reservoirs of extra-heavy crude. In
the onshore Partitioned Zone, water
injection enhances output at the
Wafra Field, also a prospect for future
steamooding. Offshore in the U.K.
North Sea and China, and in deepwater
Brazil and Angola, Chevron captures
heavy crudes with waterooding,
elaborate well completions and
down-hole pumps all adaptable for
development of untapped heavy
resources in other countries.
Investing in thermal R&D
Building on a heritage of ingenuity,
Chevron continually invents and
adapts technologies to produce
heavy oil. As an example, we are
utilizing horizontal wells in steam-
oods leading to higher recovery
and signicant new production. We
pioneered high-pressure, steam-
fracturing production in tight
diatomite reservoirs. Our new solar
steam generator in California will
save energy and reduce emissions
from operations. And we continue
to seek ways to thermally produce
the worlds deeper heavy oil deposits
unreachable by current steam
techniques.
Government and university
alliances
Under a leveraged technology strategy,
Chevron seeks to learn from and share
with our partners governments,
universities, and national and inter-
national oil companies. We invest in
heavy oil research and development
with governments, including Canada,
Indonesia, Kuwait, Saudi Arabia and
Venezuela, to explore new ways to
produce and optimize each countrys
resources. And we collaborate with
the University of Southern California,
Stanford University and Texas A&M
among many others to digitally
automate heavy oil elds and test
ideas to produce heavy oil with
solution gas drive, in-situ combustion,
solvent-assisted thermal recovery
and other experimental methods.
Heavy Oil | 5
Above Left: A critical component of Chevrons partnership to develop extra-heavy oil in Venezuela, this giant upgrader processes
raw output from the Hamaca Project to make up to 180,000 barrels of synthetic crude per day.
Above Center: Combining capital and expertise from Chevron Technology Ventures and BrightSource Energy, a new solar facility
will heat a tower-top boiler with 3,800 mirrors to supply up to 4 percent of steam for Chevrons Coalinga heavy oil eld in California.
Above Right: In Indonesia and numerous other countries, Chevrons partnerships combine technology and skilled professionals to set
the international standard for heavy oil operations.
Chevrons downstream heavy oil expertise has evolved in parallel
with our upstream capabilities. Today, with support from our
strategy, technology and commercial integration teams, production
and rening work together to optimize the heavy oil value chain.
Chevron is equipped to convert heavy oil into high-demand fuels
and is strategically well positioned for the long term as the world
relies more on heavy oil feedstocks.
Heavy oil rening
Chevrons rening network can process over 600,000 barrels of heavy crude and
residuum per day, including coking capacity well above the global industry average.
In the United States, our El Segundo Renery integrated with our nearby heavy oil
production continues to upgrade its heavy oil processing capacity and exibility.
In South Korea, Chevron is a 50 percent partner in the 840,000 barrel-per-day
Yeosu Renery complex that is currently expanding its heavy oil capacity. And
our 350,000 barrel-per-day Pascagoula, Mississippi, renery in the United States
is one of the worlds most advanced heavy oil processing facilities.
Processing technology leader
During the past 50 years, Chevron has built a broad portfolio of patented techniques
for processing heavy crudes and residuum. Were a leader in catalyst research and
development and the premier global licenser of technologies for heavy feedstock
hydroprocessing and upgrading of extra-heavy crudes. We continue to advance this
capability with proprietary innovations such as Vacuum Resid Slurry Hydrocracking
(VRSH), a pre-commercial technology with the potential to signicantly increase
yields of transportation fuels from ultra-heavy feedstocks.
Chevrons premier heavy oil renery in Pascagoula, Mississippi, near the Gulf of
Mexico, is equipped to convert up to 350,000 barrels of heavy, high-sulfur crudes
per day into valuable fuels.
Downstream: The Integration Advantage
350,000 barrels
6 | Heavy Oil Heavy Oil | 7
Successful heavy oil projects require long-term relationships with
a nancially strong partner committed to integrated, disciplined
development of this challenging resource. Currently, Chevrons
heavy oil partnerships include operations in Angola, Brazil, Canada,
Chad, China, Indonesia, the onshore Partitioned Zone, the United
Kingdom, the United States and Venezuela. At Chevron, a large,
integrated network of senior management, engineers, scientists
and other heavy oil experts throughout the world share information
and insights on improving results.
Chevron also brings to every partnership a proven capability to
optimize capital investment and prots through superior project
management and long-term, highly efcient operation of base
business assets. This is critical to success in heavy oil projects,
which often require large, front-end investments in specialized
infrastructure, wells and associated upgrading facilities, followed
by decades of labor-intensive eld management. Working with
partners using leading-edge technologies, new reserves are
unlocked and costs reduced over time.
Partnership: Key to Heavy Oil Success
8 | Heavy Oil
Training, development, promotion
Partnership means investing in people. In the United States, at our International
Heavy Oil Center in central California, in nearby oil elds and at the Chevron
Energy Technology Company in Houston, Texas, Chevron provides training and
experience to partners from many countries, including China, Indonesia, Kuwait,
Saudi Arabia and Venezuela. Within countries where we operate, we are
committed to hiring, training and promoting the local workforce, and providing
opportunities to expand their skills within Chevrons global operations.
Chevrons own Heavy Oil Specialist Program a two-year course that expects
to graduate 50 early career employees during the next several years focuses
on heat management, eld surveillance, steam distribution and other critical
heavy oil skills.
Technology transfer
Chevron shares heavy oil technologies and advanced work processes with its
long-term partners. We introduced thermal enhanced recovery in Indonesia in
1985. And today the Duri Field is a model of performance as the worlds largest
steamood, employing thousands of Indonesians. In a similar transfer of technology
to Middle East partners, our large-scale pilot project at the Wafra Field in the
onshore Partitioned Zone is among the regions rst major efforts to prove
steamoodings vast potential to the area.
Protecting people and the environment
Guided by the Chevron Operational Excellence Management System, our heavy oil
projects place a high priority on the health and safety of employees, contractors
and communities, and on protecting the environment. With safety programs in the
eld, in facilities, on the road and in the ofce, were committed to zero incidents.
Our comprehensive Environmental, Social and Health Impact Assessment process
systematically seeks ways to enhance project benets and minimize impacts to
environment, health and communities.
Helping communities The Chevron Way
The Chevron Way summarizes our companys values and guides our actions and
business decisions as we strive to be the global energy company most admired for
its people, partnership and performance. In countries where we operate, we invest
in communities to support priorities such as job creation, health care and education.
Heavy Oil | 9
Above: Chevron optimizes heavy oil
projects worldwide with deep expertise in
subsurface imaging and reservoir modeling.
Left: Chevrons International Heavy Oil
Center at its showcase Kern River thermal
project in California functions as a heavy
oil university for partners from China,
Indonesia, Venezuela and other countries.
An important production milestone
achieved at both the Kern River and
Duri elds a result of the successful
transfer of steamooding technology.
2 billion
barrels
Chevron Corporation
6001 Bollinger Canyon Road
San Ramon, CA 94583, USA
Produced by Global Upstream and Gas

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Recycled
Recyclable
At the rening end of the heavy oil value
chain, Chevron advances technologies such
as Vacuum Resid Slurry Hydrocracking
(VRSH), a patented process for converting
heavy feedstocks to clean fuels while
producing no coke.