Chevron

Chevron Australia

2011

VisionAt the heart of The Chevron

Way is our vision... to be

the global energy company

most admired for its people,

partnership and performance.

The Chevron Way – It’s How We do Business

Getting Results the Right WayThe Chevron Way explains who we are, what we do, what we believe and what we plan to accomplish. It establishes a

common understanding not only for those of us who work here, but for all who interact with us.

Our vision means we:

• safely provide energy products vital to sustainable economic progress and human development throughout the world;

• are people and an organisation with superior capabilities and commitment;

• are the partner of choice;

• earn the admiration of all our stakeholders — investors, customers, host governments, local communities and our employees — not only for the goals we achieve, but how we achieve them;

• deliver world-class performance.

ContentsMD Foreword 4

About Chevron Australia 7

Exploring for Energy 9

The Global Technology Centre 11

Partnering with the Community 13

Gorgon Project 19

Wheatstone Project 25

Striving for Excellence 29

Energy Industry Partnering 32

Working at Chevron 35

Protecting the Environment 39

Construction of the Gorgon Project’s materials offloading facility.

ValuesOur company’s foundation is built on our values, which

distinguish us and guide our actions. We conduct our business

in a socially responsible and ethical manner. We respect the

law, support universal human rights, protect the environment

and benefit the communities where we work.

Our values are:

Integrity

Trust

Diversity

Ingenuity

Partnership

Protecting people and the environment

High performance

4 | Chevron Australia

Global energy demand is expected to

rise by 50 percent by the year 2035.

The centre for this growth will be Asia,

which is expected to grow at three

times the rate of the global demand1.

This means the decisions we make

here in Australia will have energy

implications for future generations

across Asia - and the world.

Regionally, demand for cleaner

burning natural gas alone is expected

to increase by more than 100 percent

by 2030 and in Australia, natural gas

consumption has already increased

more than 50 percent since 1997,

compared with just over 10 percent for

coal and liquid fuels, respectively.

By embracing the opportunity

represented by this growing demand

for cleaner energy, Chevron can

provide a platform for broader

economic growth throughout Australia

and indeed the world.

Through the environmentally

responsible development of our

Liquefied Natural Gas (LNG) projects

– Gorgon and Wheatstone – Chevron

is positioned to provide energy for

generations to come, including LNG to

our regional neighbours and domestic

gas locally.

And we are doing this through

ingenuity, high performance and

partnerships – all of which play a

critical role in the energy equation.

In Western Australia, we are fostering

innovation through our Global

Technology Centre, which enables

Chevron to partner with universities

MD Foreword

“ By providing cleaner energy, we in turn improve the standard of living for many.”

Roy Krzywosinski Chevron Australia Managing Director

Globally, the appetite for oil, natural gas and other energy sources continues to grow dramatically.

1 Source: US EIA International Energy Outlook

MD Foreword

Chevron Australia | 5

and industry. This in turn provides

expertise to Chevron’s businesses

within Australia and the Asia Pacific

region and shapes Perth as a gas

technology centre of excellence.

At a national level, our two projects are

set to create an estimated the 16,500

direct and indirect jobs and generate

almost $50 billion in expenditure on

local goods and services.

However investing in local communities

is more than just building projects

and awarding large contracts – it‘s

also about building productive,

collaborative, trusting and beneficial

relationships in the communities in

which we operate.

That’s why in the north-west of West

of Australia we are investing in, high-

value programs that build human and

institutional capacity and stimulate

economic growth.

It’s by working in close partnership

with government, communities,

customers and local companies that

Chevron will continue to positively

impact the quality of life of people

throughout Australia and indeed the

world for generations to come.

Roy J. Krzywosinski Chevron Australia Managing Director

Chevron Australia’s corporate office is located in Perth.

We are leading the development of the

Gorgon and Wheatstone natural

gas projects, we manage an equal one-

sixth interest in the North West Shelf

Venture, we are a participant in the

proposed Browse LNG Development

and operate Australia’s largest

onshore oilfield on Barrow Island and

the Thevenard Island oilfields.

We are also proud of our

environmental record on Barrow Island

and are committed to maintaining the

island’s biodiversity and conservation

values.

Our core value of protecting our

people means we safely produced

more than 315 million barrels of oil

on Barrow Island and delivered more

than $1 billion in revenue to the WA

government.

Safety is a part of the value system and

culture at Chevron. We are proud that

the company’s days-away-from-work

injury rate is globally, among the best

in the industry. We’ve turned words

on a page into the daily actions of our

workforce. Our workforce believes that

About Chevron Australia

Chevron is one of the world’s leading integrated energy companies and through its

Australian subsidiaries, has been present in Australia for almost 60 years.

At Chevron, we do it safely or not at all, and there’s always time to do it right.


incidents are preventable and they

behave accordingly.

We’ve accomplished this through

leadership, setting high expectations,

giving people the tools and processes

to manage operational risks, auditing

for compliance, and then holding

people accountable for their actions

and results.

About Chevron Australia


Barrow Island has maintained its Class A Nature Reserve status while being

home to Australia’s largest onshore oilfield for the last 40 years, during which

time more than 300 million barrels of oil have been produced.

Our environmental management of Barrow Island has received national

and international recognition. Our rigorous environmental processes have

made the island an environmental showcase and world-class example of

sustainable development and demonstrate our commitment to our core value

of protecting the environment.

We have an unwavering commitment to being a good partner with our

communities by focusing on building productive, collaborative, trusting and

beneficial relationships. Our employees care about where they live and work

and Chevron Australia runs a variety of employee involvement programs to

encourage employees to actively engage in their community.

We believe that contributing to the social and economic development of the

communities where we work is fundamental to the broader success we seek

to achieve as a business. In Australia, our social investment is concentrated

in Western Australia, where Chevron Australia is headquartered. We invest in

high-value programs that build human capacity and help stimulate economic

growth. This in turn helps communities to prosper.

Our rigorous environmental processes have made Barrow Island the island an environmental showcase and world-class example of sustainable development.

Chevron Australia Snapshot

• In 2010, our daily production in

Australia was 110.6 MBOED. This

consisted of 34.3 MBOED of

Liquids (condensate, oil and LPG)

and 76.3 MBOED of gas (LNG).

• We made ten offshore discoveries

in WA in two years.

• We are Australia’s largest holder

of gas resources.

• The Gorgon Project will include

the world’s largest commercial

scale carbon dioxide injection

project, making the Gorgon

facilities the world’s most

greenhouse-gas efficient.

• Our quarantine system is

considered to be “world’s

best practice”1.

• We operate more than 53,000

square kilometres of exploration

acreage in WA.

• We have been involved in Australia

for almost 60 years.

• About 3000 people are expected

to work for Chevron Australia by

the end of 2011.

1 Western Australian Environmental Protection Authority.

As part of the Wheatstone Project, a comprehensive range of environmental studies were undertaken on-site.

It has never been a more exciting time for Chevron in Australia with our two mega projects,

Gorgon and Wheatstone on track and set to increase natural gas supplies to Australia and

the region.

We are creating history, right here, right now.

Exploring for EnergyDeveloping Vital Energy Sources

In a world desperately seeking secure and reliable energy supplies, the urgency of

getting new supplies of natural gas to domestic and global markets is building.

Growing demand is fuelled by a burgeoning population that is estimated to

increase by about 20 percent in the next 20 years, with most of that growth in

countries with emerging economies, such as China and India2.

At the beginning of 2011, Chevron Australia’s estimated total resource is almost

60 trillion cubic feet. As Australia’s largest holder of natural gas resources, we

are committed to providing much-needed new and cleaner burning energy to the

Asia-Pacific region.

The Chevron-operated Gorgon Project represents the single biggest investment

in a resource project in Australia. Both Gorgon and Wheatstone projects are

amongst the largest we have ever undertaken globally. These projects secure

Australia’s position as a leading gas producer and generate tremendous economic

benefits for both Western Australia and Australia, including employment,

government revenue and local business opportunities, for generations.

However, we recognise that the world needs all the energy we can develop.


The Atwood Osprey.

2 US EIA International Energy Outlook

Exploring for Energy


At Chevron one of our core values is high performance. Our exploration results

are amongst the best in the industry. We have made ten offshore discoveries in

Western Australia since April 2009, underpinning potential expansions at Gorgon

and Wheatstone.

Offshore northwest Australia is recognised as one of the most prospective areas

for gas resources in the world and it is one of our key exploration focus areas.

Continued exploration success is expected as we continue our deepwater drilling in

the area.

To date, Acme-1, drilled in 2010, is one of our most significant natural gas

discoveries in Australia, in terms of net gas pay. Acme-1 was also the most

significant discovery for Chevron Corporation globally in 2010.

We attribute our ongoing success to a combination of significant exploration

funding, the quality of our drilling program and a commitment to technical

excellence and safe operations.

Exploration is a big part of Chevron’s business in Australia. We are investing

hundreds of millions of dollars into an ongoing exploration and appraisal program.

Underpinning this investment is the knowledge that discoveries eventually become

long-term energy producers.

Energy is not a luxury – it’s the foundation for economic growth. And by investing

in the future, we’re helping to build economic prosperity both here in Australia and

around the globe.

Exploration Snapshot

• We are currently undertaking

our largest drilling campaign in

Australia.

• We’ve successfully drilled 10

discoveries in the past two years.

• Our operated interests span more

than 53,000 square kilometres of

acreage and we hold non-operated

interests across around 16,000

square kilometres of acreage, all

offshore northwest Australia.

• Acme-1 is our most significant

discovery in Australia in terms of

net gas pay.

• Operating 2 submersible drilling

rigs – Atwood Osprey and Eagle.

Offshore northwest Australia is recognised as one of the most prospective areas for gas resources in the world and it is one of our key exploration focus areas.

The Global Technology CentreDifferentiate Performance Through Technology

With 25 percent of our global oil and gas production coming from the Asia-Pacific

region, the Centre was strategically located in Perth to support our regional operations.

The Centre helps Chevron’s business units solve the technical challenges of

finding, evaluating and producing their energy resources safely and economically,

while protecting the environment and supporting those communities in which

Chevron operates.

The Centre works closely with university and research institutions through

various alliances, such as the Western Australian Energy Research Alliance (WA:

ERA) and Chevron’s global University Partnership Program, to build on petroleum

research, technology development and education and training projects.

For example, new technologies are helping geoscientists to see more clearly

beneath the earth’s surface. These advances enable Chevron to maximise the

production of our existing fields and to drill deeper than ever before, so we can

locate and recover resources that were once considered too difficult to develop.

Although natural gas and coal are expected to provide more than 80 percent of

the world’s energy for the near future, next-generation renewable energy may

play a key role in meeting the world’s energy needs. Globally, we have formed

research partnerships with many academic institutions to pursue renewable

energy technology, including biofuels from non-food sources.

We’re committed to bringing proven technical capabilities to our operations so we can help

meet the growing global demand for energy. As part of this we established the Perth Global

Technology Centre in 2007.

Globally we have a number of collaborative research projects which are focused on developing knowledge and technology in alternative energy sources, such as hydrogen and coal and gas to liquids, and the management of related health, safety and environmental aspects.


Above – Chevron’s Perth Global Technology Centre was established in 2007.

Chevron Australia


Our commitment to Indigenous engagement incorporates a range of activities in areas where we operate.

We have an unwavering commitment to be a good partner and place great focus

on building productive, collaborative, trusting and beneficial relationships.

In Australia, the majority of our social investment is concentrated near our

projects in the north-west of WA as well near our headquarters in Perth. We

work closely with a range of partners, including local communities, Indigenous

stakeholders, government agencies, non-government organisations, universities

and industry bodies.

Our initiatives focus on investing in high-value programs that build human and

institutional capacity and stimulate economic growth. We also provide assistance

to small and medium enterprise development in local communities, especially

those that preserve and promote Indigenous arts and culture.

We are committed to providing sustainable outcomes and helping to build

stronger communities and we commit to consulting the local community in the

early planning stages of the development of programs.

We have an unwavering commitment to be a good partner and place great focus on building productive, collaborative, trusting and beneficial relationships.

Partnering with the CommunityWorking together to build better, stronger communities

In 2010 we contributed to programs that mostly focussed on outcomes relating to health

and social wellbeing; education and training; arts, culture and heritage preservation and the

environment.


Partnering with the Community


Key partnership programs include:

• TelethonSpeechandHearing – a partnership that focuses on combating

middle ear disease through the use of mobile ear clinics (Ear Buses) to

conduct screening and medical intervention in schools throughout the

Pilbara and Perth Metro with the aim of improving hundreds of school age

children’s wellbeing and opportunities for educational attainment.

• OnslowWELD (Working on Employment, Learning and Development) – which

aims to provide a vocational curriculum in various trades to help improve

student retention and enhance their employability post-schooling.

• TheSwanDistrictsFootballClub’sVSwansActiveYouthDevelopment

Program – which uses sport as a tool to engage young people in education

and deliver key social, health and academic outcomes in Onslow.

• Over the past four years our CommunitySpiritGrantsprogram has

provided grants totalling more than $500,000 to community projects in

Exmouth, Onslow, Karratha, Dampier and Roebourne.

• We were the exclusive naming rights sponsor of WA’s largest community

event, 2011ChevronCitytoSurfforActiv.

• FOCUSEnvironment – an annual photographic competition that encourages

WA students from years 4 to 12 to be more aware about the environment.

Soon Pansy Hicks will be able to complete

her stunning paintings within the new art

building at Roebourne. Photo courtesy of

FORM and John Elliott.


• TheRoyalFlyingDoctorService – this long-term relationship provides

ongoing support to its air medical service in WA.

• TheSmithFamily – Chevron Australia’s funding to extend the Learning for

Life program into Mirrabooka, Gosnells, Midland while the Chevron and the

Gorgon Joint Venture Participants are funding the program to Karratha.

The program focuses on removing barriers to educational attainment for

students from low socio-economic backgrounds.

• TheBeaconFoundation – Chevron and the Gorgon Joint Venture

Participants funding will extend the No Dole program into two new Western

Australian schools in the Kwinana area. This program specifically addresses

youth unemployment equipping students with skills to identify and access

appropriate employment opportunities.

• OnslowCommunityGarden – this project was funded by Chevron and the

Gorgon Joint Venture Participants. The Onslow Community Garden assists

the community in developing skills in growing organic produce, building and

development, horticulture, water management, organic waste management,

urban biodiversity and clean food production.

• BeyondtheBeaker – a WA touring program initiated in partnership with

Scitech that aims to inspire year 8 to 10 students to pursue careers in science,

mathematics, engineering and technology.

• MastersSeriesSponsorandPlatinumPartnerofWestAustralian

SymphonyOrchestra (WASO) – we also support the “WASO on the Road

Tours” across Perth while Chevron and the Gorgon Joint Venture Participants

are funding the WASO on the Road Tour to the Pilbara.

• MarrMooditj – which provides vocational training for Indigenous youth in the

Pilbara region to enable them to pursue careers within the health industry.

• FORM – Roebourne Art Centre partnership funded by Chevron Australia and

the Gorgon Joint Venture Participants supports the construction of an art

centre, training and professional development for emerging and established

Indigenous artists and assists in building new employment and economic

opportunities for Indigenous people in the creative industries.

• OnslowYouthOutreachProgram – the program promotes positive

behaviour and provides a range of school holiday and after school programs.

• OnslowPrimarySchool to develop a youth-focused education program

using the leadership of high-profile local Indigenous sportsmen – Peter

Matera, Chris Lewis and Andrew Krakouer. The program encourages students

to stay and excel at school while learning about healthy lifestyles.

We provide assistance to a range of community-based organisations and events, including the Pilbara Industry Community Council Health Initiative, Indigenous Business Development Industry Collaborative, Pilbara Aboriginal Contractors Association, NAIDOC (the National Aboriginal Islander Day Observance Committee) Week Celebrations, Onslow Breakfast Program, Yirra Yaakin, Black Swan Theatre Company and the Beacon Foundation.



HealthandWellbeing

Our partnership with Telethon Speech

and Hearing focuses on combating

middle ear disease throughout the

Perth metropolitan and Pilbara.

With an estimation of greater than

40 percent of Indigenous children

suffering from untreated middle ear

disease, this program aims to improve

hundreds of school age children’s

wellbeing and opportunities for

educational attainment.

Middle ear disease which has

significantly higher prevalence in

Indigenous children, contributes

to speech, language, behavioural

problems and learning difficulties,

and can have life-long consequences.

The Chevron sponsored program

supports mobile ear clinics (Ear

Buses) to conduct screening and

medical intervention in schools

across the Pilbara and Perth.

Educationandtrainingprograms

In addition we encourage students

to consider careers in mathematics,

engineering, technology and science

by sponsoring an education program

by Scitech at local schools called

“Beyond the Beaker – Discovering

Careers in Science”.

We run a Schools Information

Program, where our employees make

presentations to tenth grade students

to increase their awareness of the

petroleum industry.

We are also involved in Onslow WELD

(Working on Employment, Learning

and Development), which aims to

provide a vocational curriculum

in various trades to help improve

student retention and enhance their

employability post-schooling.

Employeecommunityprograms

We encourage our employees to be

involved in their local communities

and spend one paid day per year

volunteering on worthwhile community

projects.

We also support employees’ efforts

outside of work by providing grants

to community organisations they

undertake volunteer work. Launched

in February 2008, Change for Charity

is our employee payroll donation

program. The program enables

employees to make regular donations

to WA registered charities through

United Way. The administration costs

associated with the program are

covered by Chevron, allowing 100% of

every donation made by employees to

be received by the nominated charity.

In addition we match contributions

made by employees dollar-for-dollar.

So far the Change for Charity program

has raised more than $180,000.


Our key focus areas for community investment in Australia are improving Aboriginal health, early education, work readiness, business development, employment and heritage preservation.

Onslow Community Garden.Telethon Speech and Hearing.

PartneringwiththeOnslowcommunity

We are involved with a number of

program and activities in Onslow,

including public meetings and regular

workshops with nominated Community

Reference Group members.

In 2010 we committed significant funds

to community development programs in

Onslow through our Social Investment

program, focusing on five key areas:

• Health and social wellbeing

• Education and training

• Environment

• Small and medium enterprise

development

• Arts and Culture and Civic and

Community

As part of our Social Investment

program, we support six local

community organisations through

our Community Spirit Grants program

that are the essence of a thriving local

community across four categories:

families and children, sport, volunteers

and the environment.

We have listened to Aboriginal people

and as a result are focusing on long-

term strengthening of their community

by improving health, early education,

work readiness, business development,

employment and heritage preservation.

As our natural gas projects in the

north-west WA move forward, so does

our commitment to enhancing our

partnership with the local communities

in which we operate. With the Gorgon

and Wheatstone Projects set to

leave long-lasting legacies with local

communities, it is imperative that we

work together to deliver the most

practical and effective programs to the

long-term benefit of the community.

As part of this, we are committed to

consulting actively with Aboriginal

communities where we operate to

build an understanding of each other’s

aspirations and concerns.

We understand the relationship that

Aboriginal people have with their

natural environment and acknowledge

their diversity of cultures and traditions.

As a result we partner with Aboriginal

people on long-term strengthening of

the community by improving health,

early education, work readiness,

business development, employment

and heritage preservation.

To make sure the programs we

provide to Aboriginal communities are

sustainable, we work cooperatively

with community groups, local

governments, the wider community

and non-governmental organisations.

This collaborative approach played

a key role in the recent signing of a

Heads of Agreement with the Thalanyji

People for our Wheatstone Project and

native title agreements with the Kuruma

Marthudunera people and Yaburara

Mardudhunera people for the Gorgon

Project’s domestic gas pipeline.

The agreements reflect our

commitment to working in partnership

with Aboriginal communities where

we operate to build a better, stronger

future, for generations to come.



Chevron Australia is a strong supporter of the V Swans Active program, a sporting program that delivers education outcomes in the Onslow community.

One of the welding firing lines set up on Barrow Island as part of the pipeline installation process.

Importantly, the project is creating opportunities for employment and local

businesses and improving energy security for at least the next 40 years.

The complexity and sheer scale of the Gorgon Project is unprecedented. It is one

of the world’s largest natural gas projects and the largest single natural resource

gas project in Australia. The world-class project includes the development of

the Greater Gorgon Area gas fields, located about 130 kilometres off the north-

west coast of Western Australia, which contain about 40 trillion cubic feet of gas

resources.

Developed to meet the growing demand for gas in Asia it will also increase the

supply of domestic gas to WA by around 30 percent.

We are currently constructing a three-train 15 MTPA LNG plant on Barrow Island

and a domestic gas plant with the capacity to provide 300 terajoules per day to

Western Australia.

The Gorgon Project is operated by an Australian subsidiary of Chevron and

is a joint venture of the Australian subsidiaries of Chevron (approximately 47

percent), ExxonMobil (25 percent) and Shell (25 percent), Osaka Gas (1.25

percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent).

First gas is on schedule for 2014 with domestic gas expected to begin the

following year. The LNG will be loaded off via a four-kilometre causeway and

loading jetty for transport to international markets.

Chevron is committed to preserving the environmental values of Barrow Island

where we already have more than 45 years experience of successfully managing

operations.

Gorgon ProjectDeveloping an Australian Icon

The Chevron-operated $43 billion Gorgon Project will set new benchmarks in the energy

industry and is creating history in Western Australia.

It is one of the world’s largest natural gas projects and the largest single resource project in Australia.


Gorgon Project Snapshot

• Annual production of 15 million

tonnes of LNG and 300TJ/d of

domestic gas.

• About 10,000 direct and indirect

jobs during peak, with more than

3,500 direct and indirect jobs

throughout the life of the project.*

• About $33 billion for the purchase

of local goods and services.*

• About $40 billion to the Australian

Government’s revenue.*

• About $64 billion to the Australia’s

Gross Domestic Product.*

* According to independent research group ACIL Tasman (based on 30 years of operations and an annual production of 15 million tonnes of LNG).


GorgonProject

Our rigorous environmental management on Barrow island has received

international recognition and clearly demonstrates that conservation and

development can successfully co-exist.

The site of the Gorgon Project has been carefully chosen to avoid areas of

particular conservation significance. The 300 hectare footprint represents about

1.3 percent of Barrow Island’s uncleared land mass.

Minimising the environmental impact and laydown area on Barrow Island is a

key focus for the Project, and construction and commissioning of the Gorgon

Project’s facilities has been staggered to reduce the area used and the work

undertaken directly on the island. This also helps us manage the number of

personnel working on Barrow Island to safeguard the island’s strict quarantine

program.

The Gorgon Project will be one of the most greenhouse gas efficient LNG

developments in the world. By taking the naturally occurring carbon dioxide found

within the gas reservoirs and injecting it more than two kilometres underground,

the Gorgon Project will reduce its overall emissions by about 40 percent or by

some 3.4 to 4 million tonnes per annum.

The Gorgon Project will be one of the most greenhouse gas efficient LNG developments in the world.

GorgonProject

Set to be one of the largest commercial-scale carbon dioxide injection projects

in the world, it will position Australia as a world-leader in this technology and

make an important contribution to managing new global greenhouse gas

emissions. About $2 billion will be invested in the design and construction of

the carbon dioxide injection project.

In addition, we have also been engaging heavily with local communities, who

will benefit greatly from the Gorgon Project. In fact, the Project will provide

opportunities and economic benefits on a scale never seen before in Australia.

The first 30 years of the initial project scope is expected to provide a $64

billion boost to Australia’s Gross Domestic Product and direct and indirect

employment of about 10,000 people at peak construction.

It is expected that $33 billion will be spent on Australian goods and services,

providing additional flow-on effects through the economy*.

* According to independent research group ACIL Tasman (based on 30 years of operations and an annual production of 15 million tonnes of LNG).


The Gorgon Project will also utilise the latest in deepwater energy development and break new ground in technology development and application.


GorgonProject

Global Recognition for the Gorgon Carbon Dioxide Injection ProjectThe Gorgon carbon dioxide injection project was formally recognised by the

international Carbon Sequestration Leadership Forum.

The Australian Government has committed $60 million to the Gorgon Project as

part of the Low Emissions Technology Demonstration Fund.

To mark the recognition of the injection project, Chevron Australia Managing

Director Roy Krzywosinski was joined on the Gorgon plant site on Barrow Island

by the Australian Prime Minister, The Honourable Julia Gillard MP; the Minister

for Resources, Energy and Tourism, the Hon. Martin Ferguson AM MP; the US

Ambassador His Excellency Jeffrey Bleich; and Chief Executive Officer, Global

Carbon Capture Storage Institute, Nick Otter.

(Left to Right) US Ambassador His Excellency Jeffrey Bleich; Australian Prime Minister, The Honourable Julia Gillard MP; Minister for Resources, Energy and Tourism, The Honourable Martin Ferguson AM MP and Chevron Australia Managing Director Roy Krzywosinski mark the recognition of Gorgon’s Carbon Dioxide Injection Project with a trip to Barrow Island.

By taking the naturally occurring carbon dioxide found within the gas reservoirs and injecting it more than two kilometres underground, the Gorgon Project will reduce its overall emissions by about 40 percent or by some 3.4 to 4 million tonnes per annum.

GorgonProject

Quarantine on Barrow Island


The Gorgon Project’s quarantine

management system is one of the

most comprehensive of its kind in

the world. It pioneers a new, risk-

based quarantine approach, with an

interrelated set of more than 300

procedures, specifications, checklists

and guidelines and is the largest non-

government quarantine initiative ever

undertaken. It is based on our existing

and highly successful quarantine

management system on Barrow

Island and has been recognised by the

Western Australian Environmental

Protection Authority as “likely to be

world’s best practice”.

Developed and refined in consultation

with the broader scientific community,

specialist environmental consultants

and relevant government regulatory

agencies, the nature of the

quarantine management system

demonstrates our commitment to the

biodiversity in and around Barrow

Island. The overarching aim of the

quarantine strategy is to facilitate the

construction and operation of a gas

processing facility on Barrow Island

while simultaneously protecting the

conservation values of the island.

In 2011 Chevron received the

Australian Petroleum Production

and Exploration Association (APPEA)

Environment Award, for the second

consecutive year, in recognition

of its comprehensive quarantine

management system for the Gorgon

Project.

Equipment undergoing the strict quarantine requirements at the Dampier Supply Base wash-bay before setting off to Barrow Island.

We are committed to safeguarding Barrow Island’s conservation values and consider an effective quarantine management system to be at the core of that commitment.

Chevron Australia


The Wheatstone project will become the first LNG hub in Australia used by third party gas providers.

Wheatstone ProjectA New Source of Vital Energy

The Wheatstone Project is hot on the heels of Gorgon and will become another iconic

resource project for Australia.

Initially, we will construct two LNG trains, with a combined capacity of 8.9 mtpa,

and a domestic gas plant at Ashburton North in Western Australia. Eventually

the project will have the capacity to produce up to 25 mtpa of LNG and

associated domestic gas.

Final endorsement of the world-class Wheatstone Project followed an

exhaustive three-year environmental review and assessment process, which

demonstrated that the Project could be developed in an environmentally

responsible manner.

The Project will become the first LNG hub in Australia used by third party gas

providers, further increasing the supply for domestic gas.

Chevron is the operator of the Wheatstone onshore foundation project (73.6

percent). The local subsidiaries of Apache Corporation (13 percent), Kuwait

Foreign Petroleum Exploration Company (KUFPEC, 7 percent) and Shell (6.4

percent) have become equity participants.

Following a final investment decision from the joint venture participants, the

first two LNG trains are expected to be supplied with gas from the Chevron

operated Wheatstone and Iago fields (Chevron 92 percent and Shell 8 percent

of the unit). Apache and KUFPEC will also bring gas to Wheatstone from their

Julimar and Brunello fields.


Wheatstone Snapshot

• Wheatstone was discovered

in 2004 and the project was

officially announced in 2008.

• The foundation phase of the

Wheatstone Project consists

of two LNG processing trains

with a combined capacity of

8.9 million tonnes per annum

(MTPA), a domestic gas plant

and associated offshore

infrastructure including the

processing platform, subsea

equipment, drilling and an

export trunkline.

• Eventually the project will have

the capacity to produce up to

25 MTPA of LNG and associated

domestic gas.

• The project will become the

first LNG hub in Australia used

by third party gas providers,

further increasing the supply for

domestic gas.

• First gas is planned for 2016.


WheatstoneProject

Located about 225 kilometres south of Chevron’s gas resources in the Indian Ocean,

the site was chosen following a rigorous screening and public consultation process,

which considered a broad range of environmental, social and engineering factors.

We anticipate that the project will offer many benefits to local businesses

and suppliers.

There is expected to be an estimated 6,500 direct and indirect jobs, of which around

3,500 are construction jobs.

Over the first 30 years of the two-train foundation development, it is estimated there

will be government revenues of about $20 billion and more than $17 billion is expected

to flow to Australian businesses*.

The Wheatstone Project represents tremendous growth opportunities to the local

community and we continue to work with local industries, key government bodies,

Indigenous and community groups to maximise the project’s benefits and reduce any

potential impacts.

In conjunction with the Gorgon Project, the Wheatstone Project cements our position

as an expanding and reliable supplier of natural gas in the 21st Century.

The Wheatstone Project will generate an estimated 6500 direct and indirect jobs and result in more than $17 billion being spent on Australian goods and services*.

* According to independent research group ACIL Tasman.

WheatstoneProject


Graphic showing the proposed materials

offloading facility, product loading and

onshore plant for the Wheatstone Project.

Graphic showing the proposed materials offloading facility, product loading and onshore plant for the Wheatstone Project.

OffshoreOffshore facilities will access and partially

process gas and associated condensate

and deliver it onshore for further

processing. The Project’s key features are:

• Well infrastructure and subsea

installations.

• A processing platform in 73 metres of

water, 225 kilometres from the coast.

• A trunkline to transport gas and liquids

from the platform to the onshore

processing facility at Ashburton North.

OnshoreOnce onshore, the gas and condensate

will be processed. The initial onshore

component includes:

• A slug-catcher to separate the gas

and liquids.

• An initial two-train LNG processing

plant.

• A domestic gas processing plant.

Processing the Wheatstone GasThe Wheatstone Project requires the installation of gas and condensate

gathering, processing and export facilities offshore and onshore.

• LNG and condensate storage.

• Marine facilities including a shipping

channel, turning basin, materials

offloading facility and export jetty.

• An access road to the site as well as

a domestic gas pipeline connecting

to the Dampier-to-Bunbury Natural

Gas Pipeline.

Safety is a focus on Barrow Island.

Striving for ExcellenceAchieving World-class Performance

We place great importance on protecting our people and the environment and on

efficiently maintaining and operating our facilities. Our ‘Operational Excellence’ (OE)

Management System is a comprehensive, proven means for the systematic management

of process safety, personal safety and health, environment, reliability and efficiency

to achieve world-class performance.

The tenets are:

• Always operate within design and

environmental limits.

• Always operate in a safe and

controlled condition.

• Always ensure safety devices are

in place and functioning.

• Always follow safe work practices

and procedures.

• Always meet or exceed

customers’ requirements.

• Always maintain integrity of

dedicated systems.

• Always comply with all applicable

rules and regulations.

• Always address abnormal

conditions.

• Always follow written procedures

for high-risk or unusual situations.

• Always involve the right people in

decisions that affect procedures

and equipment.

Our commitment to OE is embodied in The Chevron Way value of “Protecting

People and the Environment”, which places the highest priority on the health and

safety of our workforce and the protection of our assets and the environment.

We approach the five areas of OE as one priority, as success in each area

helps ensure success in the others, and, ultimately, this success becomes a

powerful driver for robust business performance. Safe, reliable, efficient and

environmentally sound operations make good business sense, and we strive to

complete every task the right way, every time.

Tenets of Operation

We are fully aware that OE requires constant attention to countless details and

human factors. Our safety culture is based on 10 Tenets of Operation, a code

of conduct that must be adhered by our employees and contractors and that is

reinforced by our supervisors and managers. The tenets are based on two key

principles:

1. Do it safely or not at all.

2. Thereisalwaystimetodoitright.

The tenets address a wide range of behaviour-based fundamentals. For

example, employees and contractors must always operate within the design and

environmental limits of their facilities, with safety devices in place and functioning

In addition, the tenets ensure we always involve the right people — those most

knowledgeable, experienced or familiar — in decisions affecting safety procedures

and equipment.



WheatstoneProject

The world has produced about one trillion barrels of oil to date. This production

is expected to double over the next century or so from conventional proved

reserves and undiscovered conventional oil. For more than a century, oil and

petroleum products have powered the world, mostly as motor fuels, and demand

is expected to grow over the long term.

Both Barrow Island and Thevenard Island islands are located off the north-west

coast of WA and play an integral role in delivering a reliable source of energy for

Australia. We have been producing crude oil from Barrow Island – a Class A Nature

Reserve – for more than 45 years. Rated as one of the most important wildlife

refuges in the world, we have maintained Barrow Island’s ecological balance.

Thevenard Island is the hub from which crude oil from six Chevron-operated

offshore petroleum reservoirs – Saladin, Roller, Skate, Yammaderry, Cowle and

Crest – is processed and readied for shipment by ocean tankers to Australian

refineries. The first oil from Thevenard Island operations flowed in 1989 and

subsequent fields have been brought into production in a staged development.

More than 140 million barrels of oil have been processed through these facilities.

WA Oil OperationsFuelling the Future

We have an exceptionally strong global oil portfolio, with key operations in important oil

regions. Our Barrow Island oil field is Australia’s largest onshore oilfield.

“ Since oil development started in the 1960s we have demonstrated that with proper management, development and conservation can co-exist on Barrow Island.”

Roy Krzywosinski Chevron Australia Managing Director

We have been producing crude oil from Barrow Island – a Class A Nature Reserve – for more than 45 years. More than 315 million barrels of oil have been produced from Barrow Island since 1967.


Barrow Island Snapshot

• Currently5,600barrelsperdayofcrudeoilare

produced on the island.

• Wehold57.1percentoftheJointVenturepermits

covering Barrow Island and a 51.4 percent interest

in the permits covering Thevenard Island, with

participants Santos and ExxonMobil.

• Morethan315millionbarrelsofoilhavebeen

produced from the island and more than 108

tankers have been loaded – without a major

environmental incident – since 1967.

• Morethan900wellshavebeendrilledatBarrow

Island, including more than 480 oil production

wells, 260 water injection wells and various gas

producer and water disposal wells.

• Today,about446wellsareproducingoil,with

the majority of production coming from the

Cretaceous Windalia Formation, located about

800 metres below the surface.

• Optimisationofthewaterinjectionsystemis

arresting field production decline from seven

percent to two percent.

More than 315 million barrels of oil have been produced from Barrow Island since 1967.


North West Shelf Venture

Chevron holds an equal one-sixth interest in the NWSV – currently Australia’s

largest resource project gas processing facility.

Since 1985 it has been WA’s largest producer of domestic gas, providing about

65 percent of the State’s total production. It accounts for more than 40 percent

of Australia’s oil and gas production and is a major producer of LNG, natural

gas, liquefied petroleum gas (LPG), condensate and crude oil. A proven reliable

supplier of clean energy to the Asia-Pacific region, it is well positioned to meet

global demand for LNG.

Located on the Burrup Peninsula near the Port of Dampier and the town of

Karratha in northern WA, the NWSV reserves are based on vast undersea natural

gas and crude oil resources. It is operated by Woodside on behalf of the other

joint venture participants, who have together invested more than $27 billion in

onshore and offshore oil and gas facilities.

The NWSV consists of production from five major oil and gas fields and a number

of smaller fields, including the North Rankin, Goodwyn, Perseus, Angel and

Energy Industry PartneringMeeting World Energy Needs Through Partnerships

We have a long history of partnering with other major resource companies on large-scale

projects. We are a foundation participant in both the North West Shelf Venture (NWSV) and the

Browse LNG Development.

Since 1984 the NWSV has been supplying gas for use in WA. Following the start of LNG production in 1989, it has safely delivered more than 3,000 LNG cargoes to customers around the world.

The Chevron operated North West Swan LNG vessel.

North West Shelf Venture Snapshot

• The NWSV accounts for more than

40 percent of Australia’s oil and gas

production.

• Our current net daily production

from the NWSV averages 26,000

barrels of crude oil and condensate,

5,000 barrels of LPG and 433

million cubic feet of natural gas.

• Production from the NWSV

accounts for about one percent of

Australia’s gross domestic product

and contributes more than $1 billion

each year in taxes and royalties.

• We have a 16.7 percent interest in

NWSV and operate the North West

Swan LNG vessel.

Echo Yodel natural gas fields and the Wanaea, Cossack, Lambert and Hermes

crude oil fields. The facilities include three fixed offshore platforms; one floating

production, storage and offtake vessel; and an onshore gas processing facility,

located near Karratha.

The onshore gas plant consists of five LNG trains, a domestic gas plant, LPG

production units and storage and loading facilities for LNG, LPG and condensate.

Browse LNG Development

Operated by Woodside, we hold between 16.67 and 20 percent of the two joint

ventures which collectively are known as the Browse LNG Development.

The three gas fields underpinning this development – Torosa, Brecknock and

Calliance – are located in the Browse Basin about 425 kilometres north of

Broome, in northern WA.

The Browse resources contain about 13 trillion cubic feet of dry gas and 280

million barrels of condensate. The proposed Browse LNG Development is a joint

venture between Woodside, Chevron, BHP Billiton, BP and Shell.

In April 2009, the Western Australian Government announced James Price Point

in the Kimberley as its preferred site for the processing of Browse gas resources.

The project entered front end engineering and design phase in 2011.

Energy Industry Partnering


The NWSV consists of production from five major oil and gas fields and a number of smaller fields, including the North Rankin, Goodwyn, Perseus, Angel and Echo Yodel natural gas fields and the Wanaea, Cossack, Lambert and Hermes crude oil fields.

Chevron Australia


A variety of career disciplines exist within Chevron.

Working at ChevronA World of Opportunity in Human Energy

With two large-scale projects positioned for growth, we are shaping Australia’s energy future

and offering outstanding career opportunities.

Our workforce is rapidly increasing with more than 3000 people expected to work for Chevron

Australia by the end of 2011. A Chevron career is not just a job. It’s an extraordinary opportunity

to help shape the future of energy.

We offer a truly global and collaborative work experience.

Our employees get to team up with some of the best and brightest people from

around the world using leading edge technology to create new and innovative

energy solutions.

We provide a world of opportunity, challenge and fulfilment where employees

can pursue goals, develop new skills, change career paths, and explore new

horizons.

A variety of career disciplines exist within the company, including business

support, commercial, drilling and completions, earth science, facilities

engineering, finance, health, environment and safety, human resources,

information systems, operations, petroleum engineering, project engineering

and supply chain management.

Pleasevisitchevronaustralia.comformoreinformationoncurrent

opportunities.

We provide a world of opportunity, challenge and fulfilment where employees can pursue goals, develop new skills, change career paths, and explore new horizons.



Aboriginal Employment

We are focused on delivering employment opportunities for Aboriginal

Australians. We have established a team dedicated to Aboriginal employment,

which is working with the community to ensure participation in Aboriginal

employment program design and delivery.

In recognition that education and employment are fundamental priorities for

Aboriginal people in the North West, we are providing a number of long-term

career and growth opportunities.

As part of this, we have implemented a range of initiatives, including the

appointment of a Karratha-based Senior Aboriginal Employment Adviser to

engage with job service providers and others to identify upcoming jobs and

potential candidates for those jobs.

We also actively encourage our contracting partners to support local

communities, which has led to many employing Aboriginal people.

WorkingatChevron

Diversity is a core value at Chevron. We value and demonstrate respect for the uniqueness

of individuals and the varied perspectives and talents they provide. We have an inclusive work

environment and actively embrace a diversity of people, ideas, talents and experiences. We

have an excellent reputation as a preferred employer and encourage a diverse workforce. As

our workforce continues to grow, we will continue to look for opportunities to promote diversity

as part of our overall strategy to be the global energy company most admired for its people,

partnership and performance.

Career Opportunities at Chevron

We put people at the centre of everything we do – from protecting the safety and

health of our people to helping them succeed. No matter where someone is on

their career path, we offer ongoing education and training to help them develop

their skills and expand their career.

Our training and development programs begin on a new recruit’s first day and

continue throughout their career.

Our compensation and benefits programs are designed to meet the diverse

needs of our employees. In addition to a salary that is competitive with other

major companies, we offer annual incentive awards when the company meets

its established goals, programs to help our people balance work and personal

responsibilities, educational assistance and other benefits.

“Early on I was told that basically

anything I wanted to do, Chevron

will try to accommodate. While

my background is geophysics and

geomechanics, my managers said that

if I liked, I could move into the drilling

area — something I never considered an

opportunity as it was not something I

had studied for. I don’t think there are

any bounds in terms of what we can do

at Chevron. In the Horizons program,

we’ve met with managers who have told

us about their career experiences, like

starting with a degree in geology and

then moving into Health, Environment

and Safety, then becoming a team

leader in an unrelated area. The

opportunities are endless here.”

Marie, Horizons Graduate Geophysicist

WorkingatChevron

Chevron Wins the 2010 WA Employer of the Year Award

We were named “Western

Australia Employer of the Year”

at the 2010 WA Training Awards.

The Awards acknowledge the

achievements of apprentices,

training and vocational students

and the contribution made to

training by trainers, training

organisations and employers.

As well as recognising our

excellence in training and

development, the win is a strong

reflection of our commitment to

helping our employees be the best

they can be.

“Working for Chevron really has

been everything I expected – very

rewarding, with plenty of challenges

and learning opportunities along the

way. As a member of the Horizons

program there is a strong focus on

technical and career development,

and on the job responsibilities are

only limited by your own willingness

to be proactive and get involved. The

importance of leading an active life

away from work is also valued highly.”

Jason, Graduate Petroleum Engineer



Conservationist Dr. Harry Butler on Barrow Island.

Our operations on Barrow Island are recognised as a model for the coexistence of

petroleum development and the protection of biodiversity.

Eminent naturalist and conservationist Dr Harry Butler has spent the past four

decades working closely with us to ensure we successfully operate on the island

without threatening the ecosystems, species and environmental qualities that

make the island unique.

We credit much of our worldwide reputation on the island to Dr Harry Butler’s

involvement in developing a world-class environmental management model.

The island’s 235 square kilometres of sparsely vegetated and arid landscape

is home to many plants and animals endangered or rare on the mainland. Our

stringent measures ensure that the 227 native plants, 54 reptiles and 110 types of

birds thrive alongside our oil field operations.

Employees and members of the community are involved in a variety of

biodiversity projects and scientific research programs on the island, such as

tracking the movement of flatback turtles, that help maintain the integrity of

the environment.

Protecting the EnvironmentAchieving Results – The Right Way

We place an extremely high value on protecting the environment and this leads to

successful oil and gas operations.

In helping to meet the world’s growing demand for energy, we do so with sound

environmental management and respect for the environments in which we operate.


Barrow Island’s Class A Nature Reserve status has been maintained while being home to Australia’s largest operating onshore oilfield over the past 45 years.

Chevron Australia


Barrow Island environmental program

Our operations on Barrow Island are recognised as a model for the coexistence of

petroleum development and the protection of biodiversity.

After more than 45 years of oil operations on the island and the production of

more than 315 million barrels of oil, the island’s biodiversity remains intact thanks

to our rigorous quarantine procedures and environmental management. The

wealth of flora and fauna on the island continues to flourish despite the presence

of Western Australia’s largest onshore petroleum operation.

Any activities with the potential to affect native vegetation are subject to

stringent controls to minimise disturbance, and where necessary, appropriate

rehabilitation is undertaken. The strict quarantine measures have carefully

protected the native species and ensured no invasive animals have become

established on the island.

We’re committed to seeing all of our operations and projects developed in an

environmentally responsible manner.

The Gorgon and Wheatstone Projects will both help maintain energy security

domestically and internationally and have the potential to reduce global

emissions by about 75 million tonnes per year – compared with the use of coal

for electrical power generation. In simple terms, this will have a similar impact on

global greenhouse gas emissions as removing all of Australia’s road transport and

civil aviation emissions.

After completing rigorous environmental impact assessments and management

processes for the Gorgon Project, we are implementing what has been learnt into

the current impact assessment for the Wheatstone Project.

Significantly, with Gorgon – Australia’s largest single resources project – we

have identified the opportunity to further reduce greenhouse gas emissions by

about 40 per cent through the underground injection of the carbon dioxide that

occurs naturally in the reservoir gas and that would otherwise be released into

the atmosphere.

With injection rates between three and four times greater than existing

commercial scale projects, Gorgon will position Australia as a world leader in the

application of carbon dioxide injection technology. Combined with current best

practice in plant design, the carbon dioxide will make the Gorgon Project one of

the world’s most greenhouse gas efficient projects and help Australia respond to

international concerns about greenhouse gas emissions.

And we’re privileged to be able to attract some of the best environmental

advisors and subject matter experts to work with us in both reducing our impact

and managing our environmental programs.

We’re committed to seeing all of our operations and projects developed in an environmentally responsible manner.

Chevron Australia

These programs cover the full range of environmental issues, including climate

change adaption, fauna monitoring and protection, waste reduction technology

selection and environmental inductions.

We share the concerns of governments and the community about climate change

and recognise that the use of fossil fuels to meet the world’s energy needs is a

contributor to increased greenhouse gases in the Earth’s atmosphere.

Natural gas is part of the solution to climate change, not part of the problem.

Natural gas produces almost 45 percent less CO2 than coal - providing a cost-

effective, environmentally sound approach to climate change.

Our Global Action Plan on Climate Change guides our overall thinking on a range

of associated strategies, including emissions reduction, efficiency improvements,

research investments and new business opportunities.

We believe that taking prudent steps now to lower greenhouse gas emissions is the right thing to do.


Barrow Island’s biodiversity remains intact thanks to Chevron’s rigorous quarantine procedures and environmental management.

Chevron Australia


Greenhouse gas partnerships and focus

We are a long-term supporter of research and demonstration of new low

emissions technologies.

As part of this we are a member of the Cooperative Research Centre for

Greenhouse Gas Technologies, one of the world’s leading collaborative research

organisations, which focuses on carbon dioxide capture and geological storage.

We are also a Foundation Member of the Global Carbon Capture and Storage

Institute, which aims to accelerate the commercial deployment of carbon capture

and storage projects to ensure their valuable contribution in reducing carbon

dioxide emissions.

Since 2004 we have been involved in the development of an Australian regulatory

framework for greenhouse gas storage. This has included membership of the

Stakeholder Reference Group assisting the Ministerial Council for Minerals and

Energy to develop the Australian Regulatory Guiding Principles for Carbon

Capture and Storage, and participating in the National Carbon Storage Taskforce.

We actively engage with the Australian and State Governments about policies to

address the risks posed by climate change and we have made a number of public

submissions to various inquires and reviews considering climate change policy.

These partnerships and investments in low emissions technology research

and demonstration will help assist the Australian community in adapting to the

challenges of operating in a low emissions future, for the benefit of all.

We actively engage with the Australian and State Government about policies to address the risks posed by climate change and we have made a number of public submissions to various inquires and reviews considering climate change policy.

Right – An Eastern Osprey on Barrow Island.

Barrow Island, Western Australia.

Chevron Australia


ChevronAustraliaPtyLtdABN 29 086 197 757250 St Georges Terrace Perth Western Australia 6000Tel: +61 (8) 9216 4000 Fax: +61 (8) 9216 4140Email: [email protected] © 2011 Chevron Corporation. All rights reserved.

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