Chevron 2006 Annual Report

OPERATING HIGHLIGHTS
Upstream
day. During the year, we also began construction on
the Tahiti development in the deepwater U.S. Gulf of
Mexico and completed key components of a floating
production, storage and offloading vessel for the
Agbami development in Nigeria’s deep water. In
Canada, we approved a net additional $2 billion investment
in the Athabasca Oil Sands Project, which
will increase design capacity from 100,000 barrels
of bitumen per day to more than 255,000 barrels
per day. Chevron has a 20 percent interest.
In 2006, we committed to develop other major
discoveries. Offshore Brazil, we plan to develop
the Frade Field, our first oil field development
in that country. Frade is expected to begin producing
in early 2009. Two years after startup it is
expected to reach a maximum production rate of
90,000 barrels of oil-equivalent per day. We also
announced plans to develop the Great White,
Silvertip and Tobago fields in the deepwater U.S.
Gulf of Mexico.
EXPLORATION SUCCESSES Chevron has one
of the most robust and successful exploration programs
in the industry. The foundation for our string
of discoveries is the use of proprietary technology
that helps us map deepwater reservoirs with unprecedented
clarity. In 2006, we announced significant
crude oil discoveries in deepwater Nigeria and the
U.S. Gulf of Mexico. We also made two major natural
gas discoveries offshore Western Australia, both
within the giant Greater Gorgon Area, which we plan
to develop.
During the year, we acquired new exploration acreage
in Canada, in the Norwegian Barents Sea, in the
deepwater U.S. Gulf of Mexico and offshore Western
Australia. We also increased our acreage in Canada’s
Athabasca oil sands region.
To help maintain our leading position in deepwater
exploration and production, we awarded a contract
for the construction of a state-of-the-art drill ship
that is expected to have the most advanced drilling
capabilities in the offshore drilling industry. Expected
to be delivered in 2009, it will be dedicated exclusively
to Chevron for a five-year period.
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