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UPSTREAM
Upstream Highlights
> Reached milestones on projects connected with the company’s global natural gas strategy:
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A 20-year agreement for regasification capacity at the proposed Sabine Pass LNG terminal in Louisiana.
The final two key federal permits from the Mexican government that allow the company to move forward
with development of the Baja California LNG import terminal.
An MOU between Sasol Chevron and Qatar Petroleum to evaluate an expansion of the Oryx gas-to-liquids
(GTL) project in Qatar. The company also agreed to pursue a 130,000-barrel-per-day upstream/downstream
integrated GTL project in Qatar.
Award of a contract for front-end engineering and design (FEED) for a world-scale LNG plant at the Brass
LNG Project in Nigeria.
● Approval for the development of the Escravos GTL facility that is scheduled to begin construction in 2005.
2005 OUTLOOK
> Project execution – Advance the five major projects that are expected to add significant production beginning
in 2006. These and other capital projects are expected to contribute approximately 850,000 net oil-equivalent
barrels per day by 2009:
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Nigeria – construction of a floating production, storage and offshore loading platform at the deepwater
Agbami Field.
Angola – installation of subsea systems, pipelines and wells at the deepwater Benguela Belize–Lobito
Tomboco fields.
Kazakhstan – Sour Gas Injection/Second Generation Project at Tengizchevroil.
Australia – offshore LNG infrastructure in the Greater Gorgon Area.
● Gulf of Mexico – deepwater Tahiti Field subsea systems and floating production facility.
> Exploration – Follow up on 2004 successes in focus and test areas.
> Portfolio upgrade – Finalize disposition of remaining nonstrategic assets identified as part of the portfolio
rationalization plan announced in 2003.
> Base business – Continue major initiatives to improve operating efficiencies, reduce base production decline
and lower costs.
> Global gas projects – Begin construction on the Escravos GTL facility in Nigeria; advance FEED activities at the
Brass LNG Project also in Nigeria; and continue progress toward the permitting and evaluation of other sites
and facilities in the United States, Mexico and Qatar.
UPSTREAM FINANCIAL AND OPERATING HIGHLIGHTS 1 United States International
Dollars in Millions 2004 2003 2004 2003
Segment Income $ 3,938 $ 2,833 $ 5,846 $ 3,365
Gross Liquids Production (Thousands of Barrels per Day) 2 555 619 1,645 1,681
Net Liquids Production (Thousands of Barrels per Day) 2 505 562 1,205 1,246
Other Produced Volumes (Thousands of Barrels per Day) – – 140 114
Gross Natural Gas Production (Millions of Cubic Feet per Day) 2 2,191 2,619 2,203 2,203
Net Natural Gas Production (Millions of Cubic Feet per Day) 2 1,873 2,228 2,085 2,064
Gross Proved Liquids Reserves (Millions of Barrels) 2 1,868 2,237 7,968 8,311
Net Proved Liquids Reserves (Millions of Barrels) 2 1,737 2,058 6,236 6,541
Gross Proved Natural Gas Reserves (Billions of Cubic Feet) 2 4,306 6,260 16,950 15,919
Net Proved Natural Gas Reserves (Billions of Cubic Feet) 2 3,704 5,353 15,971 14,838
Natural Gas Sales (Millions of Cubic Feet per Day) 4,518 4,304 1,885 1,951
Natural Gas Liquids Sales (Thousands of Barrels per Day) 177 194 105 107
Net Exploratory Oil and Gas Wells Completed 3,4 16 27 24 12
Net Development Oil and Gas Wells Completed 3,4 900 697 367 736
Net Productive Wells at Year-end 3,4,5 35,003 38,021 9,704 10,134
Net Proved and Unproved Acreage (Thousands of Acres) 3 9,196 9,950 443,280 48,237
Exploration Expenditures $ 511 $ 548 $ 681 $ 538
Production Expenditures $ 1,309 $ 1,093 $ 3,820 $ 3,496
Total Upstream Capital and Exploratory Expenditures $ 1,820 $ 1,641 $ 4,501 $ 4,034
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1 Includes equity share of affiliates unless otherwise noted.
2 Gross production or gross reserves are the company’s share of total production or total reserves after deducting partners’ equity share, but before deducting
royalties. Net production or net reserves are after deducting royalties.
3 Consolidated companies only.
4 Net wells include all those wholly owned and the sum of the fractional interests in those that are joint ventures, unit operations or similar wells.
5 Includes wells producing or capable of producing and injection wells temporarily functioning as producing wells. Wells that produce crude oil and natural
gas are classified as oil wells.