Western Canada

Production

Athabasca Oil Sands

Muskeg River Mine

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.

Kitimat

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.

Exploration

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.

Chevron Canada Resources believes in responsible development and in protecting the environment and the communities where it operates. In Alberta, Chevron is conducting its Kaybob Duvernay program, which includes utilization of horizontal drilling and multi-stage hydraulic fracturing technologies, in accordance with all regulations prescribed by the Alberta Energy Regulator (AER). Furthermore, Chevron is a member of the Canadian Association of Petroleum Producers (CAPP) and abides by its Guiding Principles for Hydraulic Fracturing.

Chevron supports the disclosure of chemicals used in hydraulic fracturing. Water and sand constitute more than 99 percent of the fracturing fluid.

In 2012 the AER initiated reporting of fracturing fluid using FracFocus.ca.  FracFocus has been adopted as the standard reporting mechanism for North America.  Chevron Canada’s fracturing fluids will be reported using this process.

Additional Information
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