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© 2016 Chevron Corporation
The Chuandongbei Gas Project Dr. Min Chen
Vice President Chevron China Energy Company
September 2016
© 2016 Chevron Corporation
Project Overview
• 30-year Production Sharing Contract (PSC) signed between Unocal East China Sea, Ltd. (“Chevron”) and CNPC in 2007.
• Co-developed by Chevron (Operator) and China National Petroleum Corporation (CNPC).
• 49% participating interest by Chevron, and 51% by CNPC.
• Over 800 square kilometers in Sichuan Province and Chongqing Municipality in southwest China.
• 2 well pads, 30-km pipeline network, 3-train sour gas processing plant and sulfur plant.
• Well Pad A Start-up: December 30, 2015 • Train 1 1st gas: January 25, 2016 • Train 2 1st gas: April 7, 2016 • Train 3 1st gas: May 27, 2016
© 2016 Chevron Corporation
© 2016 Chevron Corporation
Unique Challenges
High Population
Rugged Terrain
Large Operating Area
Sour Gas
Stage 1 Gas Gathering Station “B”
© 2016 Chevron Corporation
Unique Challenges
To address these challenges, Chevron has applied its extensive sour processing experience to help mitigate these issues
• Use of cutting edge technology, advanced process control systems, multiple leak detection/prevention systems, and extensive procurement/material standards
• Detailed technical and operational readiness reviews using top caliber subject matter experts
• Strong organizational capability and training standards
• Close cooperation with CNPC and local governments/communities
© 2016 Chevron Corporation
Strong Partnership
• One of the largest onshore gas projects developed in cooperation between an IOC and a NOC in China.
• Chevron’s expertise in developing and deploying new sour gas technologies.
• CNPC’s local knowledge, network and expertise of natural gas exploration and production.
• Strong cooperation between the partners and all levels of the Chinese government.
© 2016 Chevron Corporation
Strong Partnership
Project Governance designed to build alignment between Chevron, CNPC and local governments
• Strong relationships established from working level all the way to CEO and Central Government levels
• GM – Chevron; Joint Management Committee (JMC) Chair – CNPC
• CNPC Deputy Managers: key to resolving community and regulatory issues
• Expert Panels: Chevron, CNPC and other SME’s assembled to resolve complex issues
• Extensive use of CNPC affiliates for engineering, construction, materials management and land acquisition
• Joint cultural training sessions to help understand and leverage strengths of cultural differences
• Regular engagements with local governments - Municipal, County and Village
© 2016 Chevron Corporation
Safety and Technology Leadership
Chevron safety and technology leadership position in sour operations, with focus on:
• Personal safety
• Leak prevention
• Leak detection
• Emergency response
© 2016 Chevron Corporation
Safety and Technology Leadership
Personal Safety – Over 23 million man-hours since last DAFWC through comprehensive personal safety measures
• Competency Training: personal and process safety
• Advanced sour gas processing technology and control systems
• Technical organization capability development
• Managing safe work and “Operational Excellence Instructions”
• SME safety consultants during high risk evolutions
• Safeguard stewardship leadership engagements
• Contractor HES management
• Management of change
• Nanba Security Control Center (NSCC) cameras
• Muster points, evacuation routes and drills
© 2016 Chevron Corporation
Safety and Technology Leadership
Leak Prevention – Comprehensive measures in place from initial design to operating and maintenance protocols to prevent H2S release.
• Design
• Materials
• Construction QA/QC
• Intelligent pigging
• Asset integrity & corrosion prevention program
• Cathodic protection
• Pressure protection systems
• Safety isolation/shutdown systems
© 2016 Chevron Corporation
Safety and Technology Leadership
Leak Detection – Multiple technologies deployed to detect leaks quickly, enabling timely emergency response.
• ATMOS pressure sensing
• Low pressure safety system
• Distributed temperature sensing (DTS)
• Distributed acoustic sensing (DAS)
• Rebellion GCI cameras
• Foot patrols
• Intrusion detection
• Mass balance
© 2016 Chevron Corporation
Safety and Technology Leadership
Emergency Response – Robust plans are in place to ensure prompt and effective workforce and community response.
• State of the art command center
• Exclusion zones around facilities
• Community emergency response in partnership with local government and community leaders
• Community alarm systems within facilities and along the pipeline
• Muster points at locations away from pipeline and facilities
• Regular safety trainings and drills to local communities
© 2016 Chevron Corporation
Contribution to Local Development
• Providing business opportunities for local vendors.
• Generating jobs for local people.
• Paying over $220 million in taxes to local governments (2008-14).
• Benefitting more than 120,000 people by various community projects, such as Walk Wise, Immunization and University Partnership Programs.
• Contributing to infrastructure and economic development in southwest China; supporting Belt & Road initiative.
© 2016 Chevron Corporation
Key Experience
Safety
Partnership
Communication
Teamwork
Win-win
© 2016 Chevron Corporation
The Chuandongbei Gas Project