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2016 Corporate Responsibility Report

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southern africa strategic business unit 2016 corporate responsibility report Cautionary statement relevant to forward-looking information This corporate responsibility report contains forward-looking statements relating to the manner in which Chevron intends to conduct certain of its activities, based on management’s current plans and expectations. These statements are not promises or guarantees of future conduct or policy and are subject to a variety of uncertainties and other factors, many of which are beyond our control. Therefore, the actual conduct of our activities, including the development, implementation or continuation of any program, policy or initiative discussed or forecast in this report may differ materially in the future. The statements of intention in this report speak only as of the date of this report. Chevron undertakes no obligation to publicly update any statements in this report. As used in this report, the term “Chevron” and such terms as “the Company,” “the corporation,” “their,” “our,” “its,” “we”and “us” may refer to one or more of Chevron’s consolidated subsidiaries or affiliates or to all of them taken as a whole. All these terms are used for convenience only and are not intended as a precise description of any of the separate entities, each of which manages its own affairs. Prevnar 13 is a federally registered trademark of Wyeth LLC. Front cover: First grade students get ready for class at São José do Cluny School in Viana Municipality – Luanda. Fisherman standing by his stationed boat at Fishermen beach in Cabinda province. table of contents 1 A message from our managing director 4 Chevron in southern Africa 6 Environmental stewardship 8 Social investment 16 Workforce health and development 20 Human rights The SSCV Hermod as it prepares to lift the Mafumeira Sul WHP topsides from a barge. a message from our managing director Southern Africa Strategic Business Unit (SASBU) has a well-established legacy of excellence in southwest Africa. In 2016, we continued to implement programs designed to improve our cost competitiveness in this low oil price environment. We are building our way back to profitability and becoming a leaner and more efficient organization in the process. Through decades of experience, we have learned that our business is deeply linked to society’s progress. Although the international oil and gas market continues to face challenges, Chevron continues investing in the region, promoting local content and establishing partnerships that help strengthen local capacity. The 2016 Corporate Responsibility Report is a summary of how we conduct our business in a socially and environmentally responsible manner, how we create prosperity in the communities where we operate, and how we uphold laws and support universal human rights. This report highlights our activities in Angola, the Democratic Republic of Congo and the Republic of Congo on our journey to unlock the potential for progress in the region through programs that focus on health, education and economic development. We invite you to read our Corporate Responsibility Report, and we hope that its content faithfully conveys our vision and our values. Thank you for your interest in SASBU’s social performance, as Chevron continues to be the energy company most admired for its people, partnership and performance. John J. Baltz Managing Director 2016 corporate responsibility report 1 Moho Nord project - located in Moho Bilondo development area in the Republic of Congo. chevron in southern africa In southern Africa, Chevron is engaged in upstream activities in Angola, the Democratic Republic of the Congo and the Republic of Congo. In Angola, the company operates and holds a 39.2 percent interest in Block 0, The facility has a design capacity of a concession adjacent to the Cabinda coastline, and a 31 percent interest in a 150,000 barrels of liquids and 350 million production-sharing contract (PSC) for Deepwater Block 14, located west of Block 0. cubic feet of natural gas per day. Early During 2016, net daily production averaged 108,000 barrels of liquids and 114 million production from the Mafumeira Sul Field cubic feet of natural gas. commenced in October 2016 through a temporary production system. The main Chevron is the operator of, and holds a 31.3 percent interest in, the Lianzi Unitization production facility was brought on line in Zone, located in an area shared equally by Angola and the Republic of Congo. February 2017, and gas export to Angola LNG and water injection support are In the Republic of Congo, Chevron has a 31.5 percent non-operated working interest in scheduled to begin in the second quarter the offshore Haute Mer permit areas (Nkossa, Nsoko and Moho-Bilondo). In addition, of 2017. Ramp-up to full production is the company has a 20.4 percent non-operated working interest in the offshore Haute expected to continue through 2018. Mer B permit area. Average net daily production in 2016 was 23,000 barrels of liquids. The total potentially recoverable oil- Chevron also has a 17.7 percent non-operated working interest in a concession off the equivalent resources are estimated at coast of the Democratic Republic of the Congo. Net daily production in 2016 from 300 million barrels. 11 fields averaged 2,000 barrels of crude oil. Block 14 In 2016, net daily production was Angola Mafumeira Sul 25,000 barrels of liquids from Benguela The second stage of the Mafumeira Field Belize–Lobito Tomboco, Belize North, Block 0 development includes a central processing Benguela North, Tombua, Landana and Block 0 contains 21 fields that produced facility, two wellhead platforms, approximately Lianzi fields. Development and production a net daily average of 80,000 barrels of 75 miles (121 km) of subsea pipelines, rights for the various producing fields in liquids in 2016. The Block 0 concession 34 producing wells and 16 water injection wells. Block 14 expire between 2023 and 2028. extends through 2030. mafumeira sul $87 million 1,454 training budget approximate number of used for operations training construction and related jobs program from 2012-2015 created for angolans at the fabrication yards $700,000 18 92 mafumeira sul project angolan engineers were hired trained angolan operators contribution to community to develop project skills personnel to operate the facility initiatives 2016 corporate responsibility report 4 Angola LNG plant is the first of its kind. Natural gas commercialization Congo River Canyon Crossing Pipeline Moho Nord Natural gas commercialization efforts are Chevron holds a 38.1 percent interest in the The Moho Nord Project, located in the expected to monetize a total potentially pipeline, which is designed to transport up Moho-Bilondo development area, includes recoverable resource of more than 3 trillion to 250 million cubic feet per day of natural Albian reservoirs producing to a new cubic feet of natural gas and approximately gas from Blocks 0 and 14 to the Angola floating production unit (FPU) facilities 110 million barrels of liquids through LNG plant. The 87-mile (140-km) offshore hub and Miocene reservoirs producing export sales of LNG and NGLs. Major pipeline crosses under the Congo River both to the new hub and through a subsea commercialization projects include subsea canyon. Gas flow to the Angola LNG tieback to the existing Moho-Bilondo FPU. participation in Angola LNG Limited and the plant commenced in September 2016. Miocene development drilling continued in Congo River Canyon Crossing Pipeline. 2016. Installation of a TLP was completed Lianzi in 2016, enabling the start of the Albian Angola LNG Chevron is the operator and holds a 31.25 drilling campaign, which is expected to The company has a 36.4 percent interest percent interest in the Lianzi Unitization continue until 2020. Installation of the in Angola LNG Limited, which operates a Zone, located in an area shared equally new FPU was also completed in 2016. 5.2 million-metric-ton-per-year LNG plant by the Republic of Congo and Angola. It Total daily production of crude oil in 2016 located in Soyo, Angola. The plant has the includes production and water-injection averaged 17,000 barrels (5,000 net) from capacity to process 1.1 billion cubic feet wells with a subsea tieback to the Benguela the Moho Nord Project. of natural gas per day, with expected Belize–Lobito Tomboco platform in average total daily sales of 670 million Angola’s Block 14. Development drilling at Exploration cubic feet of natural gas and up to Lianzi was completed in January 2016. Drilling on an exploration well in the 63,000 barrels of NGLs. This is the world’s Moho-Bilondo area was completed in fi elds LNG plant supplied with associated January 2016, resulting in a crude oil gas, where the natural gas is a byproduct Republic of Congo discovery. of crude oil production. Feedstock for Chevron has a 31.5 percent non-operated the plant originates from multiple fields working interest in the offshore Haute and operators. In early 2016, work was Democratic Republic Mer permit areas (Nkossa, Nsoko and completed on plant modifications and Moho-Bilondo). The licenses for Nsoko, of the Congo capacity and reliability enhancements. Nkossa and Moho-Bilondo expire in 2018, Chevron has a 17.7 percent nonoperated Production restarted and LNG cargoes 2027 and 2030, respectively. In addition, working interest in a concession off the resumed in 2016. the company has a 20.38 percent non- coast of Democratic Republic of the Congo. operated working interest in the offshore Net daily production in 2016 from 11 fields Total daily production in 2016 averaged Haute Mer B permit area. Average net averaged 2,000 barrels of crude oil. 171 million cubic feet of natural gas daily production in 2016 was 23,000 barrels (62 million net) and 7,000 barrels of NGLs of liquids.
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