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Chevron Corporation – History


Chevron Corporation was established in 1879 in Los Angeles, California as the Pacific Coast Oil Company.

In 1900, Standard Oil Trust acquired Chevron. After the US Supreme Court dissolved Standard Oil, the Standard Oil Company of California was formed as an autonomous entity with its own oil fields, pipelines, tankers, refineries, and markets.

In the 1920s and 1930s, the company began investing in international exploration and made the first discoveries of oil in Bahrain and Saudi Arabia. In 1936, the company entered into new markets in Asia, Africa, and Europe with the formation of Caltex in partnership with Texaco.

After the 1940s, continued expansion led to discoveries in Indonesia, Australia, the UK North Sea, and the Gulf of Mexico. Subsidiaries and affiliates were later formed in Libya, Nigeria, Spain, Indonesia, and elsewhere. In 1961, the company purchased the Standard Oil Company (Kentucky).

The company doubled in size in 1984 following the merger with Gulf Oil Corp.That same year, Standard changed its name to Chevron, the brand name of many of its products. In 1993, Chevron formed a joint venture with the Republic of Kazakhstan, forming Tengizchevroil to develop the Tengiz oil field.

In 2001, Chevron and Texaco merged to form ChevronTexaco. In 2002, ChevronTexaco divested its stakes in US downstream joint ventures Equilon (to Shell) and Motiva (to Shell and Saudi Aramco). It also sold part of a Gulf of Mexico pipeline and two natural gas plants in Louisiana to Duke Energy, and its 12.5% stake in a natural gas liquid fractionator to Enterprise Products Partners.

ChevronTexaco sold its indirect, wholly-owned affiliate Chevron Niugini and all of its assets in Papua New Guinea to Oil Search, in 2003. It also gained the exploration and production rights to offshore Block 9A in the Gulf of Thailand, created by the Royal Thai Government. ChevronTexaco Global Gas was also formed that year.

Further in 2003, the company sold its upstream assets in Bangladesh and its subsidiary
Chevron International Bangladesh (CIBL) to Niko Resources. Chevron Energy Solutions, a ChevronTexaco subsidiary, acquired the non-federal business of Viron Energy Services (Viron), an energy engineering firm specializing in performance contracting in the US, also in 2003.

ChevronTexaco along with joint-venture partners ExxonMobil Canada and Imperial Oil Resources acquired the exploration rights for eight deepwater parcels, resulting in a significant acreage position in the Orphan Basin region offshore of Newfoundland, towards the end of 2003.

In 2004, ChevronTexaco agreed to sell a number of natural gas and oil fields to XTO Energy. In the same year, its wholly owned subsidiary in the Democratic Republic of Congo, Muanda International

Oil, was sold to a subsidiary of Perenco. In addition, the company also sold Singapore Syngas to Linde, in 2004.

In 2005, the company reached an agreement for the sale of approximately 118 Texaco-owned service stations in the UK to Somerfield, a grocery retailer. In the same year, Chevron Petroleum and Chevron Global Energy completed an agreement with Peruana de Combustibles to sell their fuels marketing business including company-owned Texaco service stations in Peru.

Further in 2005, ChevronTexaco changed its name to Chevron Corporation (Chevron). In the same year, the company completed its merger with Unocal Corporation and increased its equity ownership in Bridgeline Holdings to 100% by acquiring the remaining 40% stake from an affiliate of Targa Resources.

The company enhanced its reserves position by making new discoveries at Big Foot and Knotty Head in the US Gulf of Mexico and at Manatee offshore Trinidad and Tobago, also in 2005. In Angola, the company commenced the Benguela Belize-Lobito Tomboco deepwater project, in the same year. It also began construction of production facilities for the Tahiti (US) and Agbami (Nigeria) deepwater projects, as well as the Escravos gas-to-liquids plant in Nigeria.

Further in 2005, Chevron increased the processing capacity at the Sabine Pass LNG terminal to 1 billion cubic feet per day. In the third quarter of 2005, the company filed an application with the Federal Energy Regulatory Commission to own, construct, and operate a natural gas import terminal at Casotte Landing in Jackson County, Mississippi.The company reached agreements with Japanese utility companies for future sales of liquefied natural gas (LNG) from the Gorgon project in Australia into Japan, also in 2005.

In South Korea Chevron commenced a major upgrade of the Yeosu Refinery to enable heavy oil processing, also in 2005. In Canada, the company sold its production operations, and in the United Arab Emirates, the company sold its 40% interest in the Emirates Petroleum Products Company joint venture, further in 2005.

In 2006, Chevron purchased 122 retail stations in California, from USA Petroleum Corporation. In the same year, Chevron’s Canadian arm decided to participate in the first phase of expansion of the Athabasca Oil Sands Project. Further in 2006, Chevron collaborated with the US Department of Energy’s (DOE) National Renewable Energy Laboratory (NREL) to develop renewable transportation fuels. Chevron Energy Solutions completed the largest solar power and energy-efficiency project for the United States Postal Service (USPS) at its mail center in Northern California, also in 2006.

Texaco Nederland, an indirect wholly-owned subsidiary of Chevron signed an agreement to sell its Netherlands manufacturing business and other assets to B P, in March 2007. Chevron and Weyerhaeuser Company signed a letter of intent (LOI) to jointly assess the feasibility of commercializing the production of biofuels from cellulose-based sources, in April 2007.

The company and Texas A&M Agriculture and Engineering BioEnergy Alliance entered into a strategic research agreement to accelerate the production and conversion of crops for manufacturing ethanol and other biofuels from cellulose, in May 2007.

Further in May 2007, the company’s affiliate Chevron Trinidad and Tobago Resources and partner BG Group entered into a gas sales agreement with the National Gas Company of Trinidad and Tobago (NGC) for the supply of 220 million standard cubic feet of natural gas per day for a term of 11 years, with an option to extend for another four years. In the same month, Chevron Petroleum, an affiliate of Chevron, and Ecopetrol signed with PDVSA Gas a sales contract to start delivering natural gas from Colombia to Venezuela.

Chevron Latin America Marketing and Chevron Amazonas, both indirect, wholly- owned subsidiaries of Chevron, signed an agreement with DUCSA, a state-owned petroleum marketing and distribution company, to purchase the Chevron fuels marketing business in Uruguay, in June 2007.

The company formed a research alliance with The University of Texas at Austin to develop new technologies to increase the amount of oil recovered from mature and challenging reservoirs, in July 2007. In the same month, the company’s subsidiaries Chevron US and Chevron Credit Bank reached agreements to sell their respective proprietary credit card businesses to General Electronics Money Bank.

In August 2007, the company’s subsidiaries in Belgium, the Netherlands, and Luxembourg (Benelux) sold their fuels marketing business to Dutch company Delek Benelux, a subsidiary of Israeli company Delek Group. Chevron announced an energy research program with Massachusetts Institute of Technology (MIT), the Chevron Remote and Ultra-Deepwater Research Program, to develop remote, ultra-deepwater exploration, and production technology, in November 2007.

In the following month, Chevron Global Marketing launched its new retail web site, ChevronwithTechron.com. Chevron Thailand Exploration and Production and its co-concessionaires signed a Gas Sales Agreement (GSA) with PTT Public Company (PTT) for blocks 10-13 in the Gulf of Thailand, also in December 2007. The agreement was expected to boost natural gas supplies from these blocks by 500 million cubic feet of natural gas per day. In the same month, Chevron’s main Chinese subsidiary signed a 30-year production-sharing contract with China National Petroleum Corporation (CNPC) for the joint development of the Chuandongbei natural gas area in central China.

In February 2008, Chevron formed a 50-50 joint venture company with Weyerhaeuser Company to develop the next generation of renewable transportation fuels from nonfood sources. The joint venture, Catchlight Energy, would research and develop technology for converting cellulose-based biomass into economical, low-carbon biofuels. In the following month, Chevron Australia announced its plans to develop a new Australian liquefied natural gas (LNG) project with an initial capacity of at least one 5 million-ton-per-annum LNG production.