© Chevron 2009

CMAA Owners Forum

William SimpsonAtlanta, GA

May 3, 2010

© Chevron 2009

Chevron’s History— Multiple Generations and Integrations

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1879Pacific Coast Oil Company was founded in the San Joaquin Valley of California.

© Chevron 2009

Chevron by the Numbers

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2.74 million BOE daily net production

2.1 million BPD refining capacity

18 refineries

3 popular consumer brands:

Chevron, Texaco and Caltex

25,000+ service stations

© Chevron 2009

A Leading Portfolio of Projects

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40 $1B Net Chevron shareProjects >

93 $200MM Net Chevron shareProjects >

Project > $1B net Chevron share

© Chevron 2009

Project Resources Company

Globally Located Employees

Project Professionals

35% Project Managers

20% Business Managers

25% Engineering Managers

20% Construction Managers

Consultants

Procurement

Contracting

Project Controls

HES Technical

Support

65 Upstream Projects

15 Downstream Projects

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© Chevron 2009

Project Resources—Global Project Management

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Safety—TRIR and DAFWR

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The Challenge Facing Chevron and the Industry

Aging Workforce

Globalization of the Workforce

Increasing Complexity of Projects

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The Challenge—the Loss of Experience

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© Chevron 2009 10

The Challenge—Today’s Complex Megaproject Environment

Upstream (Gorgon and Jansz)

EV hydrocarbon resource >20TCF.

Water Depth: Gorgon ~200m; Jansz ~1350m.

Sub-sea development.

Raw gas feed (high CO2) from

Gorgon via flowline 70km to BWI with continuous MEG injection for hydrate inhibition.

2 pipeline system will facilitate the development of nearby asset base.

LNG Plant and Export

5MTPA LNG processing trains each consisting of an acid gas removal unit (AGRU) and liquefaction train.

Common condensate stabilisation and export.

LNG and condensate loaded on to carriers via jetty.

Reduced greenhouse gas emissions

by reinjecting reservoir CO2 into saline

aquifer beneath BWI.

North WestShelf

LNGExports

Subseato Barrtie-

backsow Island

3 x 5mtpa LNG trains& CO2 Injection on

Barrow Island

Future Domestic GasConnection to the mainland

Existing DomesticPipeline

JanszField

Karratha

Onslow

AUSTRALIA

PERTH

GorgonField

Kilometers

0 50N

Get more facts and figures at www.Gorgon.com.au

© Chevron 2009

Above all Our Actions are guided by the “Chevron Way”

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© Chevron 2009

Skill Building Techniques

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© Chevron 2009

Skills Building Technique—Pathways Program (years 6-20)

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Employee creates Skills Assessment Profile

Employee and Supervisor discuss Profile and gaps

Employee and Supervisor Identify Activities to close gaps

Employee creates Professional Development Plan

Employee updates Skills Profile and Development Plan as activities are completed

Employee executes Development Plan

CoursesWork ExperienceJob Assignments

© Chevron 2009

Chevron’s Corporate Strategic Initiatives

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“Four Plus One”

CSOC = Capital Stewardship Organizational Capability

© Chevron 2009

Our Project Process is CPDEP—Decision Driven, Decision Quality Focused

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© Chevron 2009

PRC Craft Productivity InitiativeProductivity Benchmarks

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Typical Craft Breakdown II

Based on Hewage and Ruwanpua (2006) and Choy and Ruwanpura (2006) work

Work time50.70%

Looking for materials14.60%

Looking for tools1.50%

Socializing8.60%

Moving7.80%

Instructions2.80%

Idle9.30%

Other4.70%

Typical Craft Breakdown I

PRODUCTIVITY IMPROVEMENTS ON ALBERTA MAJOR CONSTRUCTION PROJECTS: PHASE I– BACK TO BASICS Bob McTague and George Jergeas

Direct work33%

Transporting5%

Waiting & idle32%

Late starts/ early quits3%

Personal breaks

4%

Traveling12%

Tols/materials5%

Instructions6%

© Chevron 2009

Typical Productivity Impacts

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