Decision-making in an uncertain world
A Chevron case study

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Page 2: Vision

Chevron 4 Image 2Chevron Europe is part of a global organisation, Chevron Corporation, which is the sixth largest oil and gas company in the world. The Corporation employs 40,000 people world-wide and produces over 1.4 million barrels of oil and liquids per day. (1 barrel of oil = 42 US gallons or 35 Imperial gallons). Chevron (jointly with Texaco) was the first company to drill in the North Sea, in 1964.

As part of the much larger Corporation, Chevron Europe is expected to fit in with the wider global goals of the parent organisation. Its vision is to be the petroleum company of choice in countries where it has significant operations, namely UK, Norway and Ireland. Chevron Europe needs to be successful because, like any other part of a large organisation, it needs to compete for investment funds against projects in other locations, e.g. Kazakstan, West Africa, etc. Chevron Corporation will assess the proposals put forward by its subsidiaries for funds for new projects.

Introduction to Alba

North Sea fields are rarely developed by a single operating company. The cost of exploration and development alone generally makes this infeasible. However, joining forces with other oil companies is not solely a matter of cost. The collective wealth of experience and ideas that can be shared by forming a joint venture helps to ensure that fields are brought on stream efficiently and cost effectively. Alba is a joint venture between a number of companies. These are:

  • Chevron U.K. Limited (Operator)
  • Conoco (U.K.) Limited
  • Conoco Petroleum Limited
  • Fina Petroleum Development Limited
  • Petrobras U.K. Limited
  • Saga Petroleum UK Limited
  • Statoil Exploration (U.K.) Limited
  • Unilon Oil Explorations Limited/Baytrust Oil Explorations Limited
  • Union Texas Petroleum Limited - A subsidiary of Atlantic Richfield Company (ARCO).

Chevron’s current share in the venture is just over 20%. Chevron discovered Alba in 1984 and was given Government approval for development in May 1991. The field first came into production in January 1994 and has estimated recoverable reserves of up to 400 million barrels of oil. The extracted oil is stored for export in Alba’s Floating Storage Unit (FSU) which has a capacity of 825,000 barrels of oil. Oil is then off-loaded into oil tankers which deliver to north-west European refineries.

Chevron | Decision-making in an uncertain world