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UPSTREAM
Other International
and subsea systems was awarded in August 2004. No
proved reserves have been recognized for this project.
Timing of booking of reserves and initial production are
dependent upon FEED results, which are expected in
late 2005.
CANADA
In 2004, Chevron Canada Resources (CCR) directly,
and indirectly through the sale of the partnership interests
of Chevron Canada Resources (Western), divested
producing assets in western Canada and sold its wholly
owned mid-stream natural gas processing business. The
effect of these sales on 2004 net oil-equivalent production
was about 16,000 barrels per day.
During 2004, CCR was also continuing to ramp up
production from the bitumen mine and upgrader at the
Athabasca Oil Sands Project in Alberta, evaluating its
existing position in Canada’s East Coast offshore region
and pursuing opportunities in the Mackenzie Delta
region in northern Canada.
Including volumes from oil sands, 2004 net daily
hydrocarbon production from the Canadian operations
was 89,000 barrels of liquids and 51 million cubic feet of
natural gas.
Exploration Exploration drilling in 2004 resulted in a
new crude oil and natural gas discovery in the Austral
Basin at Cerro Convento Sur x-1. In addition, two
appraisal wells were drilled at year-end 2004 to evaluate
prior-year exploration discoveries at La Yesera and
El Gancho. Several seismic surveys were acquired in the
Neuquén Basin and are under evaluation in preparation
for future exploration drilling in the area.
BRAZIL
Exploration ChevronTexaco holds working interests
ranging from 20 percent to 68 percent in five deepwater
blocks. These blocks spanned a total of 1.5 million
acres (6,150 sq. km) at year-end 2004. Exploration
is concentrated in the Campos and Santos basins. In
2004, the National Petroleum Agency approved plans
to evaluate discoveries made on Block BS-4 and Block
BC-20. The plans are expected to be complete by late
2006. The company reprocessed 3-D seismic data on
multiple blocks and participated in three exploration
wells during 2004. One of the three exploration wells,
which is the first prospect drilled on Block BM-S-7,
was unsuccessful, and results from the other two wells
have not been announced.
Development Frade Field, 42.5 percent-owned and
company-operated, lies in approximately 3,700 feet
(1,128 m) of water, 230 miles (370 km) northeast of Rio
de Janeiro in the Campos Basin. The project entered
FEED in 2003, and the FEED contract for the FPSO
Mackenzie Delta
Northwest
Territories
Nunavut
Fort McMurray HUDSON
Alberta
BAY
Manitoba
Saskatchewan
Calgary
Ontario
UNITED STATES
CANADA
Athabasca Oil Sands Project
ChevronTexaco Activity Highlight
Oil Sands (Bitumen)
GREENLAND
Quebec
Newfoundland
and Labrador
St. John’s
Crude Oil Field
ATLANTIC
OCEAN
Hibernia
Hebron
Orphan
Basin
Terra
Nova
Deepwater
Nova Scotia
Athabasca Oil Sands Project The Athabasca Oil Sands
Project (AOSP) began operations in 2003 with ramp-up
of production continuing in 2004. Total 2004 bitumen
production averaged 134,000 barrels per day (27,000
net barrels). At full capacity in 2005, AOSP is expected
to reach total production of 155,000 barrels per day.
ChevronTexaco has a 20 percent nonoperating working
interest in the project, in which oil sands are mined and
bitumen is extracted from the oil sands and upgraded
into synthetic crude oil using hydroprocessing technology.
This project also provides ChevronTexaco with the
opportunity to participate on a 20 percent working
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