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Tengizchevroil Overview Tengizchevroil Overview Tim Miller General Director Tengizchevroil May 11, 2011 © Tengizchevroil 2011 Tengizchevroil Background Kazakhstan’s Leading Producer On 6 April, 1993, President Nazarbayev signed Presidential Decree No 1168 approving the Tengiz Project Agreements TCO established as a Kazakhstan Limited Liability Partnership between Kazakhstan national oil company and Chevron on a parity basis (40 year concession) 1993 Oil Production – 2,500 TPD 1Q11 Production – ~ 75,000 TPD ~30% of Kazakhstan’s total oil output 3,200+ employees 10,000+ contractors Present Shareholders – Chevron (50%), ExxonMobil (25%), KazMunaiGas (20%), LukArco (5%) -- 81% voting provision © Tengizchevroil 2011 2 TCO Strategic Intents Be the Leader in Safety and Environmental Performance Develop Our Workforce Be Respected In Kazakhstan Community Achieve Superior Operational Performance © Tengizchevroil 2011 3 Tengizchevroil Operations Reservoir Facilities Transport Reservoir liquids Liquids processed Crude and other (mix of oil, gas, into crude oil, products NGL’s, H2S, CO2, NGL’s, dry gas, transported via etc.) produced and sulfur pipelines, rail, and from wells and tankers to world sent to the markets facilities © Tengizchevroil 2011 4 Tengiz and Korolev Reservoirs Tengiz Deepest developed super - giant oil field Reservoir is 12 miles x 13 miles Oil column is 1 mile thick 26 billion barrels oil in place 13% hydrogen sulfide crude Korolev 2 billion barrels oil in place Production started in 2001 15 % hydrogen sulfide crude © Tengizchevroil 2011 5 Tengiz Location ATYRAU NEW KARATON KULSARY KOSCHAGYL KAZAKHSTAN RUSSIA Tengiz UZBEKISTAN TURKMENISTAN TENGIZ CASPIAN SEA © Tengizchevroil 2011 6 Safety Performance Industrial Days Away from Work ■ 11+ million hours without a TCO workforce DAFW ■ An all time record in overall workforce TRIR Worldwide Oil & Gas Extraction Industry* 1.60 1.40 1.20 Manhours 1.00 0.80 0.60 0.40 Total Workforce = TCO + Contractors 0.20 0.00 Incident Rate per 200,000 per Rate Incident 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 * Industry Data from the U.S. Dept. of Labor, Bureau of Labor Statistics © Tengizchevroil 2011 7 Motor Vehicle Safety Performance Continuous positive trend in the number of motor vehicle safety incidents Driving Monitors, Journey Management, Driver Training No serious and catastrophic accidents in 2010 Recordable MVCR 5 Year Trend 1.2 0.97 1.0 0.86 0.8 0.58 0.6 0.38 0.4 MVC Rate per MM miles MM per Rate MVC 0.2 0.35 0 0.0 2005 2006 2007 2008 2009 2010 © Tengizchevroil 2011 8 Environmental Performance Air Emissions Reductions 9 From 2000 to 2010, TCO has achieved: 8 74% reduction in air emissions per tonne of oil 7 36% reduction in total emissions 147% increase in oil production 6 5 4 (kg/tonne) 3 2 Total Emissionsper TonneTotal of Oil 1 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 © Tengizchevroil 2011 9 Environmental Performance Gas Flaring Reduction 2001 - Post Gas Processing Expansion Project 2,000,000 1,800,000 2009 - After Vent ) Gas Recovery Project 1,600,000 1,400,000 tonnes 1,200,000 1,000,000 800,000 Gas Flared ( Gas Flared 600,000 400,000 200,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 © Tengizchevroil 2011 10 Superior Operational Performance ■ 15% year-on-year production growth in 2010 (25.9 million tonnes) vs. 2009 (22.5 million tonnes) ■ World-class equipment reliability and production efficiency Crude Production Million tonnes per year 26 24 22 Train 5 Program 12 20 SGI-SGP Start-up $1 billion 18 $7.4 billion 16 KTL 1 & 2 14 Debottlenecking 12 $150 million 10 KTL 2 Start-up 8 $187 million 6 KTL 1 4 Operation 2 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mar © Tengizchevroil 2011 11 Total Payments to the Republic of Kazakhstan ■ 2010 Total Payments Exceeded $9.6 billion ■ Cumulative Payments to Kazakhstan Exceed $48.3 billion 14,000 60,000 Payments to Employees and Kazakh Goods & 13,000 55,000 $MM Services (includes salaries, Rail and Pipeline Tariffs, $MM - 12,000 payments to local suppliers and other) 50,000 - 11,000 Distribution to Kazakhstan 45,000 10,000 akhstan 40,000 9,000 akhstan Taxes and Royalties 8,000 35,000 7,000 30,000 Cumulative Payments through March 2011 6,000 25,000 5,000 20,000 4,000 15,000 3,000 2,000 10,000 Annual Payments to Kaz to Payments Annual 1,000 5,000 0 0 Kaz to Payments Cumulative © Tengizchevroil 2011 12 Kazakhstani Goods and Services Accomplishments: Current Focus: ■ $1.35 billion in 2010 ■ Kazakhstani Content Team ■ $9.97 billion cumulative spend since 1995 ■ FGP Kazakhstani Content ■ Contracting Strategy ■ Manufacturing Capability Kazakhstani Goods and Services (KG&S) Millions of Dollars per year 1,600 1,400 1,200 1,000 800 600 400 200 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mar © Tengizchevroil 2011 13 Sulfur Production, Sales & Inventory ■ Inventory reduced by 1.25 million tonnes in 2010 ■ Currently under 5.2 million tonnes of sulfur in inventory 4.0 10 4,000 10,000 9.2 3.6 3,600 Pad Inventory 3.6 3.2 9,0009 Inventory Pad 3,200 Year 2.8 3.2 2,800 8 per 8,000 2.4 2,400 2.0 7 2.2 2,000 7,000 (MT Tonnes Production 2.1 1.6 ) 1,600 1.2 1.6 6 Million 6,000 1,200 1.3 5.5 0.8 800 0.9 5,0005 0.4 400 0.4 0.0 0 4,0004 2003 2004 2005 2006 2007 2008 2009 2010 Million Tonnes per Year Total Sales Production Pad Inventory © Tengizchevroil 2011 14 Corporate Social Responsibility Egilik Program ■ Social infrastructure program ■ $165 million invested ■ Recipient of 2008 Silver Paryz Award for Best Social Project ■ Recent projects: ● Vocational school in Kulsary ● Renovation of entire water system in Kulsary ● Continued gasification, Egilik Spending electrification and water system 25 upgrades in Atyrau 20 ■ Historical projects: ● Kulsary hospital 15 ● Turgyzba & Akkistogai clinics 10 ● 2 schools in Atyrau micro-regions $ Millions Millions $ ● Atyrau University Annex 5 ● Oil and Gas University repairs ● Kulsary road repairs 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ● Hospital and school equipment Actual © Tengizchevroil 2011 15 Workforce Development 100% 90% 85% TCO Employees 80% 68% 76% 70% Kazakhstani % 60% 60% TCO Supervisor and Managers 50% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Mar © Tengizchevroil 2011 16 © Tengizchevroil 2011 17 .
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