Athabasca Oil Sands Project (AOSP)
The company holds a 20 percent nonoperated working interest in the AOSP near Fort McMurray, Alberta. Oil sands are mined from both the Muskeg River and the Jackpine mines. Bitumen is extracted from the oil sands and transported by pipeline to the Scotford Upgrader near Edmonton, Alberta, where it is upgraded into synthetic oil using hydroprocessing technology.
In 2012, ramp-up associated with the AOSP Expansion 1 Project continued, increasing average total daily production to 225,000 barrels (43,000 net) of synthetic oil. As a result of the project, daily production design capacity was increased to approximately 255,000 barrels. In addition, a final investment decision was reached in mid-2012 on the Quest Project, a carbon capture and sequestration project that is designed to capture and store more than 1 million tons annually of carbon dioxide produced by bitumen processing at the AOSP by 2015.
In February 2013, Chevron acquired a 50 percent-owned and operated interest in the Kitimat LNG project and proposed Pacific Trail Pipeline, and a 50 percent nonoperated working interest in 644,000 total acres (2,606 sq km) in the Horn River and Liard shale gas basins in British Columbia. The Kitimat project is planned to include a two-train, 10.0 million-metric-ton-per-year LNG facility, and at the time of acquisition, FEED activities were in progress.
The company holds shale exploration leases totaling approximately 325,000 net acres in the Duvernay Shale formation and approximately 200,000 overlying acres in the Montney tight rock formation in Alberta. In 2012, drilling for these unconventional resources continued, with a multiwell Duvernay program on these 100 percent-owned and operated leases. Initial production to permanent facilities was achieved in late 2012.