Chevron - Partnering with Kazakhstan to Build the Future
Chevron Corporation, one of the world’s largest providers of energy, is involved in every sector of the petroleum industry, from exploration and production to transportation, refining and retail marketing, as well as petrochemical manufacturing and sales.
For over 120 years Chevron has been actively engaged in «bringing energy to people», operating in more than 90 countries worldwide.
At Chevron, we have long understood that partnerships are built on the foundations of mutual trust, respect and credibility. It’s a simple practice that guides how we work and act with the people of the many nations where we operate.
Kazakhstan is very special among our partner-countries. On April 6, 1993 we joined the Republic of Kazakhstan in establishing the largest joint venture between a Western company and a member of the former Soviet Union. The result was Tengizchevroil - a partnership created to develop the giant Tengiz oil field in western Kazakhstan, the largest discovery in the past 30 years. Since that time, we have made additional investments in other sectors, including retail gasoline marketing and petrochemical products manufacturing.
Tengiz: Helping Build the Kazakhstan economy
Through sharing ideas on oil field production, technology, transportation and marketing as well as values and approaches to protecting people and the environment, the Tengiz oil field has prospered.
In only eight years and with the help of a supportive investment climate, a prolific oil and gas reservoir, a rigorous and long-term business plan and safe and productive employees, the Tengiz field soon became the biggest producer of oil and the largest contributor to Republic of Kazakhstan’s Gross National Product.
Since Chevron partnered with the Republic of Kazakhstan, production at the Tengiz Field increased from 60,000 to 260,000 barrels of oil a day.
A total direct economic benefit to Kazakhstan from Tengiz activity in 2000 was $870 million. Moreover, the multiplier effect of the operations means that almost everyone in the region is in some way positively impacted by Chevron’s involvement.
In addition, during the next several years there will be another $2 billion invested in the Tengiz field to raise production to 19 million tons per year. This will allow Tengiz to continue as the largest oil producer in the Caspian region.
A Strong Company Culture of Capital Stewardship and Operational Excellence
Chevron is committed to Capital Stewardship - the combination of people, processes, technology and partnerships that ensure that every dollar invested is done so in a prudent and productive manner.
Hand in glove with Capital Stewardship is Chevron’s commitment to Operational Excellence - the relentless pursuit of safe, reliable and efficient operations and being a recognized leader in environmental excellence.
Today, despite extreme weather conditions in Tengiz, with its large-scale operations and ongoing construction projects, the thousands of workers on site exemplify Chevron’s focus on operational excellence. These workers have posted over 16 million hours - 990 days -without a lost-time incident; a record unmatched in the industry.
And operational excellence expands beyond our employees. Contractors, service suppliers and everyone involved with the operations at Tengiz are held to the same standards of safety and environmental performance.
Building Local Opportunities
In January 1999, The Chevron Small and Medium Enterprise (SME) Program was created with support from United Nations Development Program, Citibank and European Bank for Reconstruction and Development. SME is a source of business advice and technical assistance to business people from Atyrau and neighboring regions for assistance in developing business-plans and feasibility studies.
By mid-2001, SME’s Atyrau Business Advisory Center had helped prepare some 200 business plans, of which more than 25 percent subsequently were approved for loans - including Atyrau’s first bowling alley and supermarket. Over $1 million in small business loans was provided to SME «graduates». A separate program awarded over 2600 no-collateral «micro-credits» to smaller firms.
Chevron is proud of the many success stories resulting from the SME program. Aigul Solovyova is the President of the Business Women Association and owner of «Bazalt Inc» the Atyrau milk processing plant. Many of her employees participated in the seminars organized by the Business Advisory Center. Shortly they prepared themselves a good business plan for the operation of the milk plants using the knowledge acquired in the presentations.
Talshyn Adilova, former elementary school teacher and the director of kindergarten #9 in Atyrau recalls: «The Business Center helped us to prepare a business plan and I got a lot of useful advice for the financial analysis, marketing and business planning. We learned marketing techniques and were able to respond better to our clients and diversify services. ?.We are now looking to the future with more confidence?.»
Multiple Export Routes
One of the keys to unlocking Tengiz resources is the availability of transportation routes from the Caspian to western and eastern European markets. Chevron has been a long-term supporter of multiple export routes as is particularly evidenced by our role in developing the Caspian Pipeline Consortium.
Start up of the Caspian Pipeline in 2001 provides a major new route for Tengiz oil to world energy markets and is a tremendous opportunity for Kazakhstan to generate future growth and opportunity in the region. The efficiency of operation as well as the markets that this route can access will allow oil production from the Caspian region a very competitive alternative.
Branding the Chevron Image
In 1996, Chevron pioneered a network of world class service stations to provide our customers with quality products while meeting the most demanding environmental standards. The first Chevron service station, built in Almaty, embodied state-of-the-art technology including double-walled fiberglass underground tanks, vapor recovery systems and leak detection equipment. In 1998, similar service stations were opened in Astana and Atyrau providing jobs to 16-25 Kazakh citizens at each station.
On August 29, 2001 in Atyrau Chevron held a groundbreaking ceremony for the first high-density polyethylene pipe manufacturing facility in Kazakhstan. The plant will produce high quality plastic pipe that can be used in irrigation, sewer, water and gas distribution systems.
Chevron is proud to provide its world-class brands to Kazakhstan. The introduction of these standards and technologies, as well as the creation of new jobs to the region are important contributions to the import substitution goals of Kazakhstan’s leadership.
Healthcare, education, arts and culture, and sports all benefit from Chevron support.
The list of Chevron-sponsored local health initiatives is almost endless. Examples include hormone treatment for undersized youngsters, medicine and self-test equipment for patients with diabetes, and partnerships with the World Health Organization and the Republic of Kazakhstan health agencies to improve prenatal and infant care.
Chevron finances a fully equipped mobile clinic in the diagnosis and treatment of tuberculosis in the Almaty and Atyrau Oblasts. To date, 8,000 people have been examined and more than 80 percent of those found with TB have recovered.
The company delivers medical equipment and medicines for regional AIDS centers, Kazakh Department of the Cardiology Research Institute and Children’s Department of Kazakh Research Institute for Oncology and Radiology, as well as financial assistance to three regional policlinics in the Almaty Oblast for purchasing ophthalmology equipment.
Chevron also supports a wide range of events to help socially unprotected groups including war and labor veterans, single pensioners and children with disabilities, whereby they receive food, medicine and other basic necessities.
Thanks to Chevron’s sponsorship, the local television agency Khabar created a pilot project for sign-language translation of news. The project helped more than 55 thousand Kazakhstan people better understand the world they live in.
Chevron has focused much of its effort and resources on Kazakhstan’s next generation supplying computers, textbooks, classroom equipment, teacher training and student scholarships. Currently, some 150,000 students and more than 3,000 teachers take part in a Junior Achievement Applied Economics education program whose students start and run their own businesses. Chevron also financed publication of the first macroeconomics textbook to appear in the Kazakh language.
Due to our extensive support of these types of initiatives, Chevron recently received the Honorary Diploma for Charitable and Sponsorship Assistance in the Cultural and Humanitarian Spheres awarded by the President of the Republic of Kazakhstan. Additionally, in part due to our reputations in the communities where we work and live, Chevron has been recognized as the Best Potential Foreign Employer by AISEC Almaty - an affiliate of the International Association of Student and Young Graduates in the field of Economics and Management.
Chevron and Kazakhstan: A Future Together
The maturing of the relationships between Chevron and Kazakhstan over the past 8 years has been a positive and rewarding experience. The people of Chevron have learned of the precious resources within Kazakhstan, both hydrocarbon as well as human. We have learned through combining our backgrounds and experiences, we can create more than if either worked in isolation. Additionally, the people of Kazakhstan have benefited from Chevron’s presence. Kazakhs are getting first-hand experience of the latest and best business and technological practices. Kazakh employees are working on multi-billion dollar projects, helping in the design and construction of next-generation production facilities. These experiences will prepare them for productive employment throughout their lives.
Chevron and Kazakhstan will continue to grow together, building on a history of trust, success and partnership to build the future. We look forward to a long and mutually prosperous relationship.
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