Saudi Arabia
highlights of operations
Chevron is the only large international energy company to have a continuous Upstream presence in the Kingdom of Saudi Arabia for more than seven decades. Through our subsidiary Saudi Arabian Chevron Inc., we are engaged in a wide range of petroleum-related interests in the kingdom, and we work closely with Saudi Aramco, the national oil company, as well as with various government partners in the region.
We put special emphasis on projects that provide quality development opportunities, professional training and exposure to new technology.
Chevron conducts exploration and production in the onshore Partitioned Zone (PZ) on behalf of Saudi Arabia. The PZ lies between Saudi Arabia and Kuwait. Petroleum and mineral resources in the PZ are shared jointly by the governments of Saudi Arabia and Kuwait.
Chevron Phillips Chemical Company LLC and its affiliates have interests in Saudi Chevron Phillips Company, Jubail Chevron Phillips Company and Saudi Polymers Company. All three companies have facilities in Al-Jubail.
business portfolio
Through our subsidiary Saudi Arabian Chevron Inc., Chevron has an agreement with Saudi Arabia to operate the kingdom’s 50 percent interest in the hydrocarbon resources of the onshore PZ. The agreement was extended and amended in 2009 and expires in 2039.
In 2009, steam injection began at the Large-Scale Steamflood Pilot Project for the carbonate First Eocene reservoir at the Wafra Field. A carbonate reservoir is an oil or gas trap formed in reefs, dolomite and certain types of limestone. Typically, carbonate reservoirs are highly fractured and not conducive to steamflooding on a large scale. However, the carbonate Eocene reservoirs at Wafra have properties that are promising for successful steamflooding, which involves injecting steam into heavy oil reservoirs to heat the crude oil underground, thereby reducing its viscosity and enabling its extraction through wells. This project was preceded by steam stimulation of some wells, followed several years later by a small-scale test. The entire project is designed to determine the technical and economic viability of thermal-recovery projects in the Eocene reservoirs of the Wafra Field.
Production ceased in May 2015 as a result of difficulties securing work and equipment permits and a dispute between Saudi Arabia and Kuwait. The shut-in affected plans for both the Wafra Steamflood Stage 1 Project, a full-field steamflood application with a planned design capacity of 100,000 barrels of crude oil per day, and the Central Gas Utilization Project, a facility construction project intended to increase natural gas utilization while eliminating natural gas flaring at the Wafra Field. Both projects were deferred pending dispute resolution between Saudi Arabia and Kuwait.
In 2016, with production shut-in, the company completed a 3-D seismic survey covering the entire onshore Partitioned Zone. It is one of the largest land seismic programs ever undertaken, covering 1.1 million acres (4,600 sq km). Processing and interpretation of the data has been completed, and work to mature several exploration prospects continues.
In December 2019, the two governments signed a memorandum of understanding to resolve the dispute and allow production to restart in the Partitioned Zone. Pre-startup activities began in February 2020, and we expect production to ramp up to levels produced before the shut-in within one to two years.
chemicals
Chevron Phillips Chemical Company LLC (CPChem), a 50 percent-owned Chevron affiliate, has extensive interests in Saudi Arabia.
The Saudi Chevron Phillips Company (SCP) petrochemical plant in Al-Jubail manufactures benzene and cyclohexane. Benzene is used in styrene monomer as a solvent for waxes, resins, rubber and various other organic materials. Most cyclohexane goes into the production of nylon, which is commonly used in clothing, tents, carpeting and thermoplastics.
The plant uses the Aromax® catalyst to convert naphtha feedstock into benzene and motor gasoline blend stock. Aromax is a registered trademark of CPChem.
The Jubail Chevron Phillips Company (JCP) styrene production facility, also in Al-Jubail, is adjacent to and integrated with the SCP petrochemical plant. The Arabian Chevron Phillips Petrochemical Company Limited (ACP) – a wholly owned subsidiary of CPChem – and Saudi Industrial Investment Group share 50-50 ownership of SCP and JCP.
Saudi Polymers Company (SPCo) shares facilities with SCP and JCP on the Al-Jubail site. The joint venture, of which ACP owns 35 percent, began construction in 2008; commercial operations began in 2012. SPCo includes one of the world’s largest olefins units. Olefins are used to produce polyethylene and polypropylene. Styrene monomer, which JCP produces, is used to make polystyrene, which SPCo manufactures. Polyethylene is used in pressure pipe, gasoline containers and tanks, soap and detergent bottles, flexible packaging, coating and laminations, films, and more. Polypropylene is used in the manufacture of automotive parts, carpeting and food packaging.
marketing and retail
Under contract with Saudi Aramco, Chevron purchases Saudi crude oil for its proprietary and joint-venture refining system and ranks among the kingdom’s larger purchasers of crude.
In Saudi Arabia, Chevron AlBakri Lubricants Company is a leading manufacturer and marketer of Caltex-branded finished lubricants, greases and specialty products, such as coolants and fuel system treatment solutions.
Saudi Aircraft Services, a Chevron joint venture, has plane-fueling operations at Jeddah and sells aviation fuels in Saudi Arabia.
JCP plant, which began operations in 2008, is one of the world’s largest. It produces styrene monomer that is used in polystyrene. These products are used in packaging, electronics parts, housewares, tires, carpeting, toys and more.
technology transfer
Chevron Lummus Global LLC (CLG), a joint venture between Chevron and Lummus Technology Inc., has licensed ISOCRACKING® technology to Saudi Aramco’s Yanbu, Jubail and Jazan refineries. The large CLG hydrocrackers in Jubail and Yanbu began production in 2014 and 2015, respectively. As of early 2016, the CLG hydrocracker at Jazan was still in the detailed engineering and construction phase. CLG has licensed its ISOCRACKING® and ISODEWAXING® technologies for manufacturing lube base oils to Luberef’s refinery in Yanbu.
In 2016, Chevron signed a five-year collaboration agreement with Saudi Aramco to explore research and development projects of mutual interest. The agreement also facilitates professional development assignments for Saudi technical professionals at Chevron facilities.
in the community
Chevron supports education, health and economic development programs in Saudi Arabia.
We have played an important and ongoing role in helping found, organize, direct and fund the Saudi Petroleum Services Polytechnic in Dammam. The polytechnic, which opened in 2008, enables Saudi high school graduates to develop the technical and vocational skills critical to becoming certified oil field support services technicians. Chevron worked closely with the country’s Ministry of Petroleum and Mineral Resources and the government’s Technical and Vocational Training Corporation to develop the institute, the first of its kind in the kingdom.
record of achievement
Chevron’s history in the Kingdom of Saudi Arabia began in the early 1930s, when Standard Oil of California – later Chevron – began exploring in the kingdom’s Eastern province. In 1936, The Texas Co. – later Texaco – joined as a partner in the California Arabian Standard Oil Company (CASOC), which in 1944 became the Arabian American Oil Company, or Aramco.
In 1938, CASOC made Saudi Arabia’s first commercial oil discovery at Dammam Dome No. 7. Before it was 50 days old, the well had produced 100,000 barrels of oil. Continued exploration in the kingdom led to the discovery of 52 oil fields, including Ghawar in 1948. Ghawar is still the world’s largest oil field in terms of production and remaining recoverable reserves.
Additional partners joined Aramco in 1948. In 1973, Aramco started selling ownership to the government of Saudi Arabia. By 1989, the process of transferring ownership of Aramco to the Saudi government was complete, marking the beginning of Saudi Aramco.
In 2000, CPChem and private Saudi investors opened Saudi Chevron Phillips Company. The venture’s petrochemical plant in Al-Jubail is the kingdom’s first privately financed basic petrochemical enterprise. Jubail Chevron Phillips Company operates another petrochemical facility adjacent to and integrated with the first plant. Texaco, which merged with Chevron in 2001, began operating in the onshore Partitioned Zone between Saudi Arabia and Kuwait when it acquired Getty Oil Co. in 1984. Getty had begun operating in the PZ in 1949 under an agreement with the kingdom.
The Chevron AlBakri Lubricants Company, a joint venture headquartered in Jeddah, was established in 2004.
Saudi Polymers Company, a joint venture that includes Arabian Chevron Phillips Petrochemical Company Limited, began commercial production in Al-Jubail in 2012.
health, environment and safety
The Kingdom of Saudi Arabia’s Royal Commission for Jubail and Yanbu has honored Saudi Chevron Phillips Company and Jubail Chevron Phillips Company for excellence in environmental performance for multiple years.
Chevron is committed to improving the lives of all its employees and their communities. For example, Saudi Arabian Chevron’s hospital and field clinic for PZ operations provides support to our employees, their families and other community members.
Creating a safe work environment in the PZ is a top priority. In 2017, employees and contractors of Saudi Arabian Chevron at Mina Saud and Wafra logged more than 5 million work-hours without a Days Away From Work injury and drove more than 1 million miles without a major crash.
economy
Texaco was the first major oil company to enter a Downstream relationship with the kingdom, and today Chevron continues to be an important purchaser of Saudi crude oil. Chevron has an agreement to operate the kingdom’s 50 percent interest in the hydrocarbon resources of the onshore area of the PZ. Chevron pays a royalty and other taxes on that production.
Chevron is implementing competency and organizational development strategies with the objective of placing the right Saudis in the right jobs at the right time.
The company provides resources as well as education, training and development opportunities for Saudi employees at all levels.
Cutting-edge applications of the industry’s latest processes flow across Chevron’s worldwide operations, linking, for example, national employees in the PZ with specialists in Houston.
Employee development programs focus on improving job performance and leadership skills. Employees participate in formal training, advanced workshops, rotational assignments, and mentoring and feedback sessions to further develop themselves as future leaders.
contact
Corporate Affairs
Saudi Arabian Chevron
P.O. Box 6
Mina Al-Zour (Mina Saud) 66051
Kuwait
General inquiries email: SACPGPA@chevron.com
Contractor services email: SACcontractor@chevron.com
Supplier of goods and materials email: SACsupplier@chevron.com
Employment opportunities in Saudi Arabia: Careers at Chevron
CPChem in Saudi Arabia: CPChem
Employment opportunities with CP Chem in Saudi Arabia:
CPChem Careers
CPChem on LinkedIn
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER IMPORTANT LEGAL DISCLAIMERS
This website contains forward-looking images and statements relating to Chevron’s operations and lower carbon strategy that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “advances,” “commits,” “drives,” “aims,” “forecasts,” “projects,” “believes,” “approaches,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “progress,” “may,” “can,” “could,” “should,” “will,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on track,” “goals,” “objectives,” “strategies,” “opportunities,” “poised,” “potential,” “ambitions,” “aspires” and similar expressions, and variations or negatives of these words, are intended to identify such forward-looking statements, but not all forward-looking statements include such words. These statements are not guarantees of future performance and are subject to numerous risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Our ability to achieve any aspiration, target or objective outlined in this report is subject to numerous risks, many of which are outside of our control. Examples of such risks include: (1) sufficient and substantial advances in technology, including the continuing progress of commercially viable technologies and low- or non-carbon-based energy sources; (2) laws, governmental regulation, policies, and other enabling actions, including the granting of necessary permits by governing authorities; (3) the availability and acceptability of cost-effective, verifiable carbon credits; (4) the availability of suppliers that can meet our sustainability-related standards; (5) evolving regulatory requirements, including changes to IPCC’s Global Warming Potentials, affecting ESG standards or disclosures; (6) evolving standards for tracking and reporting on emissions and emissions reductions and removals; (7) customers’ and consumers’ preferences and use of the company’s products or substitute products; (8) actions taken by the company’s competitors in response to legislation and regulations; and (9) successful negotiations for carbon capture and storage and nature-based solutions. Further, standards of measurement and performance set forth in this report made in reference to our environmental, social, governance, and other sustainability plans and goals may be based on protocols, processes and assumptions that continue to evolve and are subject to change in the future, including due to the impact of future regulation. The reader should not place undue reliance on these forward-looking statements. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices and demand for the company’s products, and production curtailments due to market conditions; crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; technological advancements; changes to government policies in the countries in which the company operates; public health crises, such as pandemics and epidemics, and any related government policies and actions; disruptions in the company’s global supply chain, including supply chain constraints and escalation of the cost of goods and services; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic, market and political conditions, including the military conflict between Russia and Ukraine, the war between Israel and Hamas and the global response to these hostilities; changing refining, marketing and chemicals margins; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; development of large carbon capture and offset markets; the results of operations and financial condition of the company’s suppliers, vendors, partners and equity affiliates; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the company’s control; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes undertaken or required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures related to greenhouse gas emissions and climate change; the potential liability resulting from pending or future litigation; the ability to successfully integrate the operations of the company and PDC Energy, Inc. and achieve the anticipated benefits from the transaction, including the expected incremental annual free cash flow; the risk that Hess Corporation (Hess) stockholders do not approve the potential transaction, and the risk that regulatory approvals are not obtained or are obtained subject to conditions that are not anticipated by the company and Hess; potential delays in consummating the transaction, including as a result of regulatory proceedings or the ongoing arbitration proceedings regarding preemptive rights in the Stabroek Block joint operating agreement; risks that such ongoing arbitration is not satisfactorily resolved and the potential transaction fails to be consummated; uncertainties as to whether the potential transaction, if consummated, will achieve its anticipated economic benefits, including as a result of regulatory proceedings and risks associated with third party contracts containing material consent, anti-assignment, transfer or other provisions that may be related to the potential transaction that are not waived or otherwise satisfactorily resolved; the company’s ability to integrate Hess’ operations in a successful manner and in the expected time period; the possibility that any of the anticipated benefits and projected synergies of the potential transaction will not be realized or will not be realized within the expected time period; the company’s future acquisitions or dispositions of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government mandated sales, divestitures, recapitalizations, taxes and tax audits, tariffs, sanctions, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; higher inflation and related impacts; material reductions in corporate liquidity and access to debt markets; changes to the company’s capital allocation strategies; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company’s ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 20 through 26 of the company’s 2023 Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission. Other unpredictable or unknown factors not discussed on this website could also have material adverse effects on forward-looking statements.
For the latest figures, view the 2023 Supplement to the Annual Report.