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Chevron Australia

2011

The Chevron Way Its How We do Business


Getting Results the Right Way
The 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.

Vision
At the heart of The Chevron Way is our vision... to be the global energy company most admired for its people, partnership and performance. 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.

Contents
MD 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

Values
Our companys 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

Construction of the Gorgon Projects materials offloading facility.

By providing cleaner energy, we in turn improve the standard of living for many.
Roy Krzywosinski Chevron Australia Managing Director

MD Foreword
Globally, the appetite for oil, natural gas and other energy sources continues to grow dramatically.
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
1

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

Source: US EIA International Energy Outlook

represented by this growing demand

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MD Foreword

and industry. This in turn provides expertise to Chevrons 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 its also about building productive, collaborative, trusting and beneficial relationships in the communities in which we operate. Thats why in the north-west of West of Australia we are investing in, highvalue programs that build human and

institutional capacity and stimulate economic growth. Its 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 | 5

Chevron Australias corporate office is located in Perth.

About Chevron Australia


Chevron is one of the worlds leading integrated energy companies and through its Australian subsidiaries, has been present in Australia for almost 60 years.

We are leading the development of the Gorgon and Wheatstone natural gas projects, we manage an equal onesixth interest in the North West Shelf Venture, we are a participant in the proposed Browse LNG Development and operate Australias 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 islands 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 companys days-away-from-work injury rate is globally, among the best in the industry. Weve turned words on a page into the daily actions of our workforce. Our workforce believes that

incidents are preventable and they behave accordingly. Weve 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.

At Chevron, we do it safely or not at all, and theres always time to do it right.

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About Chevron Australia

Our rigorous environmental processes have made Barrow Island the island an environmental showcase and world-class example of sustainable development.
Barrow Island has maintained its Class A Nature Reserve status while being home to Australias 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.

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 Australias largest holder of gas resources. The Gorgon Project will include the worlds largest commercial scale carbon dioxide injection project, making the Gorgon facilities the worlds most greenhouse-gas efficient. Our quarantine system is considered to be worlds 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.

Western Australian Environmental Protection Authority.

As part of the Wheatstone Project, a comprehensive range of environmental studies were undertaken on-site.

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Exploring for Energy


Developing Vital Energy Sources
The Atwood Osprey.

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.

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 Australias estimated total resource is almost 60 trillion cubic feet. As Australias 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 Australias 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.

We are creating history, right here, right now.

US EIA International Energy Outlook

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Exploring for Energy

At Chevron one of our core values is high performance. Our exploration results

Exploration Snapshot
We are currently undertaking our largest drilling campaign in Australia. Weve 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.

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 Chevrons 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 its the foundation for economic growth. And by investing in the future, were helping to build economic prosperity both here in Australia and around the globe.

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.

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The Global Technology Centre


Differentiate Performance Through Technology
Above Chevrons Perth Global Technology Centre was established in 2007.

Were 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.
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 Chevrons 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 Chevrons 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 earths 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 worlds energy for the near future, next-generation renewable energy may play a key role in meeting the worlds energy needs. Globally, we have formed research partnerships with many academic institutions to pursue renewable energy technology, including biofuels from non-food sources. Chevron Australia | 11

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

Our commitment to Indigenous engagement incorporates a range of activities in areas where we operate.

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Partnering with the Community


Working 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.

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.

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Partnering with the Community

Key partnership programs include:


Telethon Speech and Hearing 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 childrens wellbeing and opportunities for educational attainment. 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. The Swan Districts Football Clubs V Swans Active Youth Development 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 Community Spirit Grants program has provided grants totalling more than $500,000 to community projects in Exmouth, Onslow, Karratha, Dampier and Roebourne.
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.

We were the exclusive naming rights sponsor of WAs largest community event, 2011 Chevron City to Surf for Activ.

FOCUS Environment an annual photographic competition that encourages WA students from years 4 to 12 to be more aware about the environment.

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Partnering with the Community

The Royal Flying Doctor Service this long-term relationship provides ongoing support to its air medical service in WA.

The Smith Family Chevron Australias 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.

The Beacon Foundation 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.

Onslow Community Garden 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.

Beyond the Beaker 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.

Masters Series Sponsor and Platinum Partner of West Australian Symphony Orchestra (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.

We provide assistance to a range of communitybased 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.

Marr Mooditj 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.

Onslow Youth Outreach Program the program promotes positive behaviour and provides a range of school holiday and after school programs.

Onslow Primary School 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.

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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.

Telethon Speech and Hearing.

Onslow Community Garden.

Health and Wellbeing 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 childrens 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.

Education and training programs 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.

Employee community programs 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.

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Partnering with the Community

Chevron Australia is a strong supporter of the V Swans Active program, a sporting program that delivers education outcomes in the Onslow community.

Partnering with the Onslow community 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 longterm 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 others 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 Projects 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.

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One of the welding firing lines set up on Barrow Island as part of the pipeline installation process.

Gorgon Project
Developing 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.

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 worlds 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 northwest 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.

It is one of the worlds largest natural gas projects and the largest single resource project in Australia.

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 Governments revenue.* About $64 billion to the Australias 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).

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Gorgon Project

The Gorgon Project will be one of the most greenhouse gas efficient LNG developments in the world.

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 Islands 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 Projects 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 islands 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.

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Gorgon Project

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 Australias 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*.

The Gorgon Project will also utilise the latest in deepwater energy development and break new ground in technology development and application.

* According to independent research group ACIL Tasman (based on 30 years of operations and an annual production of 15 million tonnes of LNG).

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Gorgon Project

(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 Gorgons Carbon Dioxide Injection Project with a trip to Barrow Island.

Global Recognition for the Gorgon Carbon Dioxide Injection Project


The 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.

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.

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Gorgon Project

Equipment undergoing the strict quarantine requirements at the Dampier Supply Base wash-bay before setting off to Barrow Island.

Quarantine on Barrow Island


The Gorgon Projects quarantine management system is one of the most comprehensive of its kind in the world. It pioneers a new, riskbased quarantine approach, with an interrelated set of more than 300 procedures, specifications, checklists and guidelines and is the largest nongovernment 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 worlds 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.

We are committed to safeguarding Barrow Islands conservation values and consider an effective quarantine management system to be at the core of that commitment.

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Chevron Australia

The Wheatstone project will become the first LNG hub in Australia used by third party gas providers.

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Wheatstone Project
A 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.

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.

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Wheatstone Project

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*.

Located about 225 kilometres south of Chevrons 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 projects 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.

* According to independent research group ACIL Tasman.

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Wheatstone Project

Graphic showing the proposed materials offloading facility, product loading and onshore plant for the Wheatstone Project.

Processing the Wheatstone Gas


The Wheatstone Project requires the installation of gas and condensate gathering, processing and export facilities offshore and onshore.

Offshore
Offshore facilities will access and partially process gas and associated condensate and deliver it onshore for further processing. The Projects 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.

Onshore
Once 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. 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 Graphic gas pipeline connecting a domestic showing the proposed materials to theoffloading facility, product loading and Dampier-to-Bunbury Natural onshore plant for the Wheatstone Project. Gas Pipeline.

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Safety is a focus on Barrow Island.

Striving for Excellence


Achieving 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.

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.

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.

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. There is always time to do it right. 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.

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Wheatstone Project

WA Oil Operations
Fuelling the Future
We have been producing crude oil from Barrow Island a Class A Nature Reserve for more than 45 years.

We have an exceptionally strong global oil portfolio, with key operations in important oil regions. Our Barrow Island oil field is Australias 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

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 Islands 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.

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More than 315 million barrels of oil have been produced from Barrow Island since 1967.

Barrow Island Snapshot


Currently 5,600 barrels per day of crude oil are produced on the island. We hold 57.1 percent of the Joint Venture permits covering Barrow Island and a 51.4 percent interest in the permits covering Thevenard Island, with participants Santos and ExxonMobil. More than 315 million barrels of oil have been produced from the island and more than 108 tankers have been loaded without a major environmental incident since 1967. More than 900 wells have been drilled at Barrow Island, including more than 480 oil production wells, 260 water injection wells and various gas producer and water disposal wells. Today, about 446 wells are producing oil, with the majority of production coming from the Cretaceous Windalia Formation, located about 800 metres below the surface. Optimisation of the water injection system is arresting field production decline from seven percent to two percent.

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Energy Industry Partnering


Meeting World Energy Needs Through Partnerships
The Chevron operated North West Swan LNG vessel.

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.

North West Shelf Venture


Chevron holds an equal one-sixth interest in the NWSV currently Australias largest resource project gas processing facility. Since 1985 it has been WAs largest producer of domestic gas, providing about 65 percent of the States total production. It accounts for more than 40 percent of Australias 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

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Energy Industry Partnering

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.

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.

North West Shelf Venture Snapshot


The NWSV accounts for more than 40 percent of Australias oil and gas production. Our current net daily production

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.

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 Australias 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.

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Chevron Australia

A variety of career disciplines exist within Chevron.

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Working at Chevron
A World of Opportunity in Human Energy
With two large-scale projects positioned for growth, we are shaping Australias 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. Its 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. Please visit chevronaustralia.com for more information on current 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.

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Working at Chevron

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.

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.

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Working at Chevron

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 recruits 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.

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.

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 dont think there are any bounds in terms of what we can do at Chevron. In the Horizons program, weve 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

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

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Conservationist Dr. Harry Butler on Barrow Island.

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Protecting the Environment


Achieving 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 worlds growing demand for energy, we do so with sound environmental management and respect for the environments in which we operate.

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 Butlers involvement in developing a world-class environmental management model. The islands 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.

Barrow Islands Class A Nature Reserve status has been maintained while being home to Australias largest operating onshore oilfield over the past 45 years.

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Chevron Australia

Were committed to seeing all of our operations and projects developed in an environmentally responsible manner.

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 islands 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 Australias 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. Were 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 Australias 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 Australias 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 worlds most greenhouse gas efficient projects and help Australia respond to international concerns about greenhouse gas emissions. And were 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.

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Chevron Australia

Barrow Islands biodiversity remains intact thanks to Chevrons rigorous quarantine procedures and environmental management.

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 worlds energy needs is a contributor to increased greenhouse gases in the Earths 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 costeffective, 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.

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Chevron Australia

Barrow Island, Western 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 worlds 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.

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Chevron Australia

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