Ties That Bind - Bay Area Council Economic Institute

Chevron’s China Energy Play
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Ties That Bind
Chevron has operated in China since 1979. It is a partner in the
CACT Operators Group, which also includes China National
Offshore Oil Corp. CACT started production from the Huizhou
fields in 1990 and is China’s major offshore foreign operator,
pumping some 50,000 barrels per day (bpd).
Chevron also produces 58,000 bpd from the BZ 25-1 and QHD
32-6 oil fields in Bohai Bay and, along with its partner in NWS
Australia, is the supplier to China’s first LNG project in Guangdong
province.
Under the Caltex brand name, Chevron operates 43 service
stations in Guangdong Province and 49 stations plus a fuels
terminal in Hong Kong SAR. It operates two lubricants blending
plants, and markets a broad range of lubricants through an extensive
network covering major cities in China. Caltex operates
a 12,000-ton capacity asphalt terminal in Shandong Province,
and in 2000 completed construction of a 100,000 metric-ton
capacity import and storage LPG facility.
Chevron completed a 100,000 metric-ton annual capacity polystyrene
plant in Zhangjiagang City, Jiangsu Province in 2000 for
the manufacture of plastics. ChevronPhillips has a 40% stake in
a Shanghai joint venture with Shanghai Petrochemical Corp.
that manufactures and markets high-density polyethylene
(HDPE).
Chevron is invested in the development of the local Chinese
work force, and has extended learning and development programs
to its joint venture partners. New employees entering
CACT are provided with hands-on management, operations
and safety training. More than 90% of all positions in Chevron’s
China upstream operations, including all joint venture employees,
are held by Chinese nationals; and 99% of all downstream
employees are local nationals.