Thursday, April 17, 2014

Construction Begins on Central Project in Wafra Oil Field

WAFRA, Kuwait - Tuesday, April 15th 2014 [ME NewsWire]
(BUSINESS WIRE) Saudi Arabian Chevron Inc. announced today that an integral project entered the construction phase, as leaders from Wafra Joint Operations, the Kuwait Gulf Oil Company, Saudi Arabian Chevron and key business partners supporting the project gathered for a ceremonial groundbreaking on the Main Gathering Center (MGC) Revamp Project.
“This investment is a commitment to decades of safe and reliable operations at Wafra and it is also an enabler of future growth within the Partitioned Zone,” said Saudi Arabian Chevron president Ahmed Al-Omer. “The advancement of the MGC project demonstrates its team’s ability to collaborate. Together, we will develop the full scope of the on-shore Partitioned Zone’s hydrocarbon resources.”
The Wafra Field is the main oil field in onshore Partition Zone. The Main Gathering Center is a critical hub for oil production because all of the oil produced within the onshore Partitioned Zone’s several oil fields passes through the MGC infrastructure. With the MGC Revamp Project, Saudi Arabian Chevron and its partner the Kuwait Gulf Oil Company plan to upgrade and maintain facilities at Wafra Joint Operations to enable continued safe and reliable production and to accommodate future growth.
The MGC facility’s two main functions are to separate the oil, water and natural gas and treat the oil for delivery to Saudi Arabian Chevron and the Kuwait Gulf Oil Company by pipelines. Many of the equipment in the MGC have been in operation since the facility was rebuilt in 1991 and are now due for replacement. The MGC Revamp Project will replace many of the heaters, coolers, pumps and other equipment needed to keep the facility operating for many years to come. Key benefits will include maintaining safe and reliable operations while providing continuity of production to enable future development projects.
Through its 1949 Concession Agreement and its extension in 2008 through the Extended and Amended Agreement, Saudi Arabian Chevron produces the Kingdom of Saudi Arabia’s 50 percent interest in the onshore Partitioned Zone’s hydrocarbon resources. SAC works in partnership with the Kuwait Gulf Oil Company which produces the State of Kuwait’s 50 percent interest in the onshore Partitioned Zone.
Notes to editors
Chevron’s presence in the Kingdom of Saudi Arabia and State of Kuwait spans many decades. Saudi Arabian Chevron (SAC) operates on behalf of the Kingdom of Saudi Arabia its 50 percent interest in the petroleum resources of the onshore Partitioned Zone, where it explores for and produces oil.
The Partitioned Zone (PZ) is a 4,600 square kilometer area in which the mineral resources are shared equally by the Kingdom of Saudi Arabia and the State of Kuwait. SAC conducts operations in the PZ with the Kuwait Gulf Oil Company (KGOC), which represents Kuwait’s equal interest in the area, through Wafra Joint Operations (WJO). Staffed and funded equally by SAC and KGOC, WJO explores for, develops and produces oil in the onshore PZ. It operates several fields: Wafra, South Umm Gudair (SUG), South Fuwaris (SF), Arq, North Wafra and Humma, and produces mainly heavy crude from ten reservoirs.
Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995.
Some of the items discussed in this press release are forward-looking statements about Chevron's activities in the Middle East region. Words such as "anticipates," "expects," "intends," "plans," "targets," "forecasts, " "projects," "believes," "seeks," "schedules, " "estimates," "budgets" outlook" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, many of which are beyond the company's control and are difficult to predict. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; 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 net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations, industry-specific taxes and changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; and general economic and political conditions. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. 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.

Contacts
for Saudi Arabian Chevron, Inc.
Awwad Al-Omar, +965 6691 4000
PZ, Kuwait
awwadao@chevron.com
Scott Park, +965 5584 4842
PZ, Kuwait
spark@chevron.com
Sally Jones, +44 560 109 1435
London
JonesS@chevron.com




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