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Chevron Bangladesh Newsletter

Let me wish each of you and your families a safe New Year. During the past year, the Asia South Business Unit faced and overcame a number of challenges. The accomplishments of the Business Unit in the face of this adversity are due in large part to the hard work and commitment to world class execution put forth by all of you each and every day.

As we begin 2012, I want to challenge all of you to continue to improve in operational excellence. One way we all can demonstrate our commitment to continual improvement is to support the new OE campaign – I'm Committed to Always – which underscores the link between operational discipline and our tenets of operations. Join me and commit to “Always”. Remember, nothing is more important than ensuring each one of us goes home safely to our families every day.

We have an exciting and challenging Business Plan for 2012. Working together as one team, we can build upon our record of success and make 2012 a year to be proud of!

Work Safely -- Always.

Pierre

Asia South Managing Director Pierre Breber

Message

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President's Message

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Chevron Bangladesh has plenty to be proud of as we Moulavi Bazar Drilling: Our Asset Development team complete another successful year. completed two important development wells at MB-7

and MB-9. The wells will be put under production by the middle of 2012 after completing the facility It is not possible to reflect on our successes without installation. mentioning the exemplary safety performance of our

Chevron Bangladesh team. At last count, our workforce had worked over 28 million man-hours without a day- Bibiyana Drilling: Land has been secured at Bibiyana away-from-work injury. Truly remarkable. South and West Pads. Construction has been

completed at North Pad, and we spud the first of ten wells at Bibiyana in January. The Bangladesh Profit Center also had a successful

Corporate Operational Excellence Audit in September. An 11 member team spent nearly two weeks in conducting Bibiyana Expansion Project: We began front-end in-depth reviews of 12 processes at each of our six engineering design in August and plan to make a final operational areas. I am happy to report that we received investment decision in mid-2012. This will be the a great report card, with three 'Good', nine 'Satisfactory', flagship project for Chevron Bangladesh's production and no 'Less-than-Satisfactory' ratings. This audit growth, as we continue to work alongside outcome is the result of all your efforts and confirms we Petrobangla to increase the nation's energy security. have a robust safety management system that helps us all go home safely to our families at the end of each working In the mean time, our community engagement efforts are day. progressing in full swing. Thanks to the three Chevron-

supported Smiling Sun clinics, about 60,000 walk-in However, we cannot afford to be complacent, and we must patients received quality health-care services during this maintain a high sense of vulnerability. While we have had year alone. Approximately 3,400 families were supported good safety performance, we must also recognize that by our livelihood development programs and over 1,000 four of our colleagues were hurt badly enough to need the students were awarded scholarships. help of a medical doctor. We also had several near-miss incidents that could have resulted in serious injury. As We also added to our rapidly expanding Chevron members of the same Chevron Family, we must take care Bangladesh family, as approximately 100 Bangladeshi of each other, help each other see the hazards and nationals joined our ranks this year. practice our operational discipline.

I end by congratulating each and every one of you for your In addition to safety, I am proud of our recent production hard work, enthusiasm and professionalism to help solve performance. In late-October, we produced more than one the energy crisis in Bangladesh. Chevron is making a big billion cubic feet per day for the first time since our staged difference. I have no doubt we will be successful in production test in July last year. October was also the achieving our vision to produce 1.5 billion cubic feet of gas highest average production month in Chevron per day by 2015.Bangladesh history.

I thank you for all you do for Chevron Bangladesh, and There have been many impressive project highlights too: above all, I thank you for all you do to keep each other

safe. Muchai Compression Project: The project team safely achieved mechanical completion in late December after over-coming several difficult challenges. The Geoffteam expects to begin commercial operations by April 2012.

25th October 2011 marked yet another milestone in pipeline system which currently limits our gas production. Chevron Bangladesh's calendar, when it produced more than one billion cubic feet of natural gas. Chevron What makes this accomplishment so much more Bangladesh has only achieved 1 BCFD production once commendable is the way Chevron Bangladesh is able to previously in July 2010 as part of a staged test of produce this volume of gas while keeping everyone safe Chevron's production capacity. However, this impressive from injury. President Geoff Strong praised the collective production was achieved without a staged test as contribution of Chevron Bangladesh employees “in Chevron Bangladesh continues to work with Petrobangla delivering reliable, clean and low cost energy to the to find new ways to deliver more gas into the national nation”.

Chevron Bangladesh Crosses 1 BCFD….Again!

Chevron Sponsors Livelihood Fair in Komolganj

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Visitors to this Chevron-sponsored fair, organized by local NGO Prochesta, walked through as many as 15 stalls exhibiting the range of activities under the umbrella of the Alternative Livelihood Program (ALP). These included cell-phone repair, sewing, Improved Cooking Stoves, solar energy, adult literacy, small & medium enterprises, fish farming, goat rearing, cattle fattening, commercial gardening of fruits and vegetables. The fair was organized to highlight some of the many development initiatives undertaken by Chevron Bangladesh for the empowerment of underprivileged communities living in its areas of operation.

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Chevron Asia-South's PGPA General Manager, William Koetzle addressing a gathering at the ALP fair.

From left to right declaring the fair open were Chevron Asia-South's Policy, Government & Public Affairs (PGPA) General Manager, William A. Koetzle; Komolganj's Upazila Nirbahi Officer (UNO), Prakash Kanti Choudhury; Chevron Asia-South's Lead Advisor, Corporate Responsibility/Community Engagement, Naser Ahmed; Chevron Bangladesh's External Affairs Manager, Obaidullah Al-Ejaz.

Last year, Chevron Bangladesh marked the third year of its five-year partnership with the Asian University for Women, Chittagong. Since 2009, Chevron has been providing a contribution of $50,000 per year to AUW to fund quality recruitment. In addition, it has also agreed to launch an internship program for AUW students at some point in future.

Priyanka Mazumder is one of five recipients of the Chevron Scholarship. She happens to be one of over 400 students representing 12 countries, including Afghanistan, Bhutan, Cambodia, China, India, Pakistan, Palestine, Vietnam, etc.

Priyanka Mazumder is the eldest of three sisters from a modest family background. Unlike many of the fathers of her peers, Priyanka's father – a retired government worker in Sylhet – has always placed especial importance on the education of his daughters. It was, in fact, her father who found out the admissions particulars of the Asian University for Women and insisted that she apply. Priyanka is the first in her family to attend university. The full scholarship she received is Priyanka's ticket to a brighter future.

Last May, Priyanka completed her first year of the liberal arts program with characteristic aplomb. Her core curriculum courses serve to broaden her knowledge in politics, history, civilization and mathematics. She was particularly fascinated by the Power, Identity & Resistance course taught by Sara Amin, a professor in Sociology from McGill University. She learnt about the dynamics of power, its location in a society, its distribution and why people resist it. Professor Amin commented on Priyanka's interest, saying, “She is an extremely hard-working student who always works to do better…her intellectual curiosity is clearly visible in the class; she asks questions, joins in discussions with a lot of enthusiasm, insight and energy. She has the intelligence and drive to continue to stand out at AUW.” Priyanka is an Honor Roll student.

For Priyanka, the liberal arts curriculum, international faculty and students, and the myriad of rigorous courses challenge and drive her to dream bigger dreams. She has zeroed in on politics as chief among her many interests, and plans to study Philosophy, Politics & Economics. She nurses an ambition to make her own small contribution to Bangladesh's economic development and public policy. She reflects, “It is AUW's vision to create the leaders of tomorrow, so I've been inspired to build myself as a leader as well. AUW has changed my worldview. It has encouraged and taught me to think critically and examine the depth of the problem at hand. AUW has shown me the path to fulfill my dreams. In a nutshell, AUW is the best thing that has ever happened to me.”

Chevron's Support for Asian University for Women (AUW) Continues…

Sitting at far left, Priyanka Mazumdar is one of five Chevron scholars being supported as per Chevron Bangladesh's five year partnership agreement with the Asian University for Women

The Chevron Bangladesh drilling program continues as well being the first well in Bangladesh to use such the Profit Center strives to achieve 1500 MMscf/D by technology. These gauges allow the Reservoir Engineers 2015. In 2011 three wells were drilled into the Moulavi in Dhaka to monitor the downhole pressure and Bazar gas reservoirs to further develop the field first temperature on a real time basis and to quickly assess the placed on production in 2005. The results from these performance of the well, in particular this technology wells highlighted the risk involved in oil and gas assists in determining how much gas each well is draining. development as the first two wells failed to find gas in the This type of information is usually obtained by running a main Moulavi Bazar reservoir but instead encountered pressure gauge into the wellbore on a wire and, due to the gas in a deeper interval. A third well, MB 9, identified gas cost, it is only performed every year or so. By having a in two shallower reservoirs as well as in the main Moulavi permanent gauge in the well this operation can be Bazar reservoir. The wells will be placed on production in performed much more frequently and timely resulting in 2012 once the facilities have been installed to allow them much more accurate estimates.to produce to the Moulavi Bazar Gas Plant.

A key aspect of this Bibiyana drilling campaign is the At the time of writing this article the Weatherford drilling acquisition of the data necessary to address both the key rig is being mobilized to the Bibiyana North pad where uncertainties in the field and to shape any future four wells are planned. The rig move is a very complex development decisions. With this in mind, and in addition operation involving almost 300 individual loads and over to the standard data gathering, up to 500m of core will be 150 people and was the subject of extensive planning by cut with image and nuclear magnetic resonance (NMR) Chevron, Weatherford and Shamolina. The route from logs acquired across the gas interval. Coring involves the the Moulavi Bazar B-Pad to the Bibiyana North pad was use of a tube to cut a cylindrical section of the reservoir. surveyed to identify any issues with the route and this This rock is recovered to surface and various experiments resulted in a number of bridges being upgraded to are performed to help characterize rock properties such accommodate the heavier loads. The narrow roads were as porosity and permeability. The depositional character also checked to ensure that they would accommodate the of the core is also interpreted and this helps to understand largest of the trucks. how the reservoir sand may be distributed and thus where

we should drill to tap additional gas reserves. Where core is not available we use image logs to provide a picture of The ten well Bibiyana drilling campaign will start early in the inside of the wellbore and the depositional character 2012 continue until late 2013. These wells will be drilled can be determined from this. This helps us to understand from three pad locations with four from an extension to how the reservoir sands are connected between wells. the existing North Pad, one from the new SouthSouth Pad NMR, routinely used in medical imaging techniques, such and five from the new West Pad. Each well is targeting as in magnetic resonance imaging (MRI), allows the specific objectives but in general they will be drilled to observation of the quantum mechanical magnetic depth of four to five km and hit a target of only 100m properties of the reservoir rock. Specifically for Bibiyana across. Up to 45km of total well length will be drilled it will help the Asset Development team to estimate the during this program with approximately 10km of this amount of water in the reservoir; the more water there is being in the gas interval. The wells will support a major the less gas there is hence this measurement is key to increase in the reserves and significant increases in estimating the original gas initially in place in the production from the giant Bibiyana Field. The additional reservoir.well capacity will be complemented by the Bibiyana

Expansion project which will add another 2 separators to the existing 4 separators already at the gas plant and 2012 will be a very interesting year in the history of increase the gas processing capacity accordingly. Bibiyana as the results from the first wells becomes

available. Once these wells are put on production they will be instrumental in supporting Chevron's efforts to The wells will be completed with permanent down-hole achieve 1500 MMscf/D by 2015 and help solve the energy pressure and temperature gauges. This is a new crisis in Bangladesh. technology to Bangladesh with the Moulavi Bazar MB-9

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As part of Chevron Bangladesh's Quality Education Support initiative, cheques were distributed to three Bibiyana high-schools at a simple ceremony held at its Dhaka office. Present at the ceremony were Chevron Bangladesh President, Geoffrey Strong, External Affairs Manager, Obaidullah Al-Ejaz, Communication Manager, M. Ahsan Ullah Khan and Assistant Community Relations Officer, ATM Mahtab Uddin. Representing Nadampur, Dighalbak and Inathganj High Schools were their headmasters, Pradip Ranjan Das, Md. Nizamul Islam and Md. Ataur Rahman respectively, and representatives of two School Management Committees. Chevron's recent contribution will support a year's salaries for three teachers per school. An endowment fund for Nadampur High School's future sustainability has also been provided.

The three high-schools are among 13 educational institutions whose students received need and merit-based scholarships last year in Chevron Bangladesh's annual scholarship program for Bibiyana schools. Last year alone, 500 financially disadvantaged and meritorious students were awarded stipends. In addition to teachers' remuneration and endowment fund, Included under the auspices of Chevron's Quality Education Program are school furniture, school uniform, sports equipment and educational implements support and remedial coaching.

Speaking on behalf of his fellow headmasters, Pradip Ranjan Das thanked Chevron for advancing the cause of education in the Bibiyana area and said that the students were reaping the benefits of an improved learning environment. Chevron Bangladesh, Geoffrey Strong, said he was pleased at the progress being made by the students. He wished them all the success for their future and said he looked forward to seeing them maximize their full potential even further.

Chevron Bangladesh President, Geoffrey Strong handed over cheques to Nadampur, Dighalbak and Inathganj High Schools in Bibiyana as part of Chevron Bangladesh's Quality Education Support initiative. External Affairs Manager, Obaidullah Al-Ejaz, Communication Manager, M. Ahsan Ullah Khan and Community Relations Officer, ATM Mahtab Uddin were also present at the ceremony.

Chevron Bangladesh Continues to Support Bibiyana Schools

In addition to contributing to Bangladesh's energy to a wider stakeholder audience, was produced by an security, Chevron prides itself on its structured experienced external vendor. Footage was collected at development programs, aimed at the empowerment of Dhaka and our field locations over a course of three the communities in its areas of operation. These are months, and nearly 50 interviews were taken of mostly partnership-based, community-driven, beneficiaries, their families and NGO partners. The video sustainable and 'fit-for-purpose' – in line with Chevron's was shown to high acclaim at the Diversity Inclusion socioeconomic objectives of health, education and Roundtable, held in Bangkok last October. enterprise development.

Alongside the CSR video production, a second video was Chevron Bangladesh's External Affairs department also produced, commissioned by the Operations handpicked 12 success stories that best encompassed Department to highlight the Profit Center's safety culture these themes and featured them in a 27-minute video and commitment to operational discipline in all aspects.documentary. The video, intending to highlight our work

Video Documentary Produced on Chevron's CSR Initiatives

Chevron Continues to Drill at Bibiyana

by Peter NesomAdvisor, Petroleum Engineering

Last April saw the kick-off of the inaugural CE Exchange Program in Bangladesh. Visiting CE practitioners from Chevron's Thailand and Vietnam operations took part in a knowledge-sharing exercise, allowing them to share best practices and learn about Bangladesh's CE initiatives from their counterparts here. A full day was spent at the Dhaka offices to orient the visitors on our approaches and processes, projects and partners. Then, a three-day visit to CE activities in Bibiyana and Moulavibazar gave them a first-hand glimpse at the ground realities and practical results. The next Exchange Program is scheduled for February in Thailand.

Pictured here in Moulavibazar with Chevron's External Affairs staffs are, Sarin Pirabul, Senior Coordinator - Policy, Government & Public Affairs (PGPA) Thailand; Bannaporn Vongwilai, External Affairs Specialist - Asia-South PGPA; Sansana Malaiarisoon, Assistant Manager, Corporate Responsibility – PGPA Thailand, and Kim Loan Ngo, PGPA Coordinator, Vietnam (1st row, left to right). Also pictured are Naser Ahmed, Lead Advisor, Corporate Responsibility – Asia-South PGPA (2nd row, 1st from left), and Obaidullah Al-Ejaz, Chevron Bangladesh's External Affairs Manager (3rd row, middle).

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Inaugural ASBU CE Exchange Program Held in Bangladesh

Rizwana Ahmad, Compliance Analyst

My day typically starts with checking e-mails – I'm usually flooded with e-mail queries on Sundays – and finishing up any work pending from the day before. Post-lunch and afternoon prayer, my daily work generally involves updating new vendors and employees into our system, processing FCPA requests, reviewing reconciliations and coordinating any number of audit queries.

Shahanaz Jahan Pushon, Officer, Facilities, Administration & Services

A typical day at work for me starts with checking e-mails. I first deal with any urgent issues that have come up, for instance, any maintenance requests or matters relating to electricity or water supply. I then go on to do my routine tasks, like raising Purchase Requisitions, inventory management, dealing with utility bills, etc. I occasionally have meetings with my line manager, vendors or the Housing Committee in charge of expatriate residences. On most days, I conduct spot visits at our expatriate housing locations to ensure that the vendors are complying with our safety standards. After lunch, I make sure any requests from our expatriate families are being seen to. This is followed by our daily permit meeting, from 4.00 to 4.30, which usually wraps up by 5.00. I go home everyday satisfied that I've done my best and engaged in meaningful work.

Describe aTypical Day at Work

Ahmed Iqbal Parvez, Senior Counsel

I consider my working day as an extended coffee day! I start off a typical day by taking care of any burning issues and putting out the proverbial fire. I feel the Law function is an essential cog in the wheel. As a professional who tremendously enjoys what he does, I pride myself on being able to provide creative and innovative legal solutions at the doorsteps of both my internal and external stakeholders. All for the sake of 'business as usual' and to keep that wheel spinning!

Kazi Mahabubul Islam (Sohel), Office Assistant

As a Chevron employee, I feel extremely proud. I enjoy the working environment here, and take pride in its safety culture. I hope for a bright future here. I oversee all arrangements for food and beverage during meetings held in all of Chevron's six Dhaka offices. Aside from getting in touch with our vendors and placing orders for timely delivery, I am also responsible for day-to-day filing and administrative tasks related to my job. A busy day is a successful working day for me.

Imam Hasan Akan, Assistant Community Relations Officer

As community relations staff, my work is not confined to a 9 to 5 schedule. On a typical day, my work involves formal/informal discussions with the local community based around our areas of operation, gauging their expectations, and generally doing motivational work centered on Chevron's CSR initiatives. Alongside running company-sponsored events, I also liaise directly with our partner-NGOs in the implementation of various CE programs. I try and solve any community issues that arise by means of direct consultation and engagement with the stakeholders involved. My work also involves a certain degree of quality control with our vendors, trying to ensure quality service. I usually cap off my day by sending a daily report to my supervisors.

Zulfikar Ahmed Chowdhury, Field Community Engagement Manager

My daily work typically involves working with the communities of our Gas Fields – managing their expectations and demands, and mitigating any grievances or tensions that may arise. In overseeing our community engagement initiatives, seeing smiles on the faces of our community gives me great satisfaction at the end of the day.

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Today, about 2.5 M people (40% of the world population) aspirin or other nonsteroidal anti-inflammatory drugs, live in areas where there is a risk of Dengue infection. It is such as ibuprofen (Advil, Alaxan, others) and naproxen caused by an infection with 1 of the 4 serotypes of dengue sodium (Aleve). These can increase the risk of bleeding virus. The virus is transmitted through mosquito bites of complications.the genus Aedes, which are widely distributed in subtropical and tropical areas of the world, and in densely If you have a more severe form of the disease, treatment populated cities like Dhaka, Bangladesh. consists of supportive care in a hospital. Such care

includes intravenous fluids and electrolyte replacement, Signs & Symptoms maintaining adequate blood pressure and replacing blood

loss.High fever, up to 105 F or 40.5 CThere is no vaccine for dengue fever A rash over most of your body, which may subside after

a couple of days and then reappear

Severe headache, backache or both Prevention and Control

Pain behind your eyes If you are living or traveling in an area where dengue fever is known to be endemic, the best way to prevent dengue Severe joint and muscle pain fever is to avoid being bitten by the mosquitoes that carry Nausea and vomiting the disease. To reduce your risk, minimize your exposure to mosquitoes:

These signs and symptoms usually appear between the Eliminate mosquito breeding areasthird and seventh day of illness, after fever has subsided. Vector control by using environmental management They may be preceded by severe abdominal pain, and chemical methods. frequent vomiting and disorientation.Proper solid waste disposal: Store all outside waste in a closed/covered containerRisk FactorsElimination of stagnant water in domestic environment Living in or traveling to an area where dengue fever and improve water storageviruses are present puts you at risk of contracting the Cover water drum at all times to prevent mosquitoes disease.from breeding.

Clean all water containers once a week.If you have had dengue fever before, your body will Collect and dispose of all cans, jars, bottles, old tires, already have made some antibodies to this virus in your and other items that can collect and hold water.blood from the previous infection. This increases your Clean gutters of leaves and debris so that rain water will resistance and usually helps protect you from re-not collect as breeding places of mosquitoes.infection.

Personal Protection:ComplicationsSchedule outdoor activities for times when mosquitoes If severe, dengue fever can lead to dengue hemorrhagic are not most prevalent fever and dengue shock syndrome, which can cause

heavy bleeding, shock and require hospitalization. Wear long-sleeved shirts, long pants, socks and shoes when going into mosquito areas

Stay in well screened, air-condition housing TreatmentUse mosquito netting over your bed If you have a mild form of the disease,

your doctor will recommend making sure to drink enough fluids to avoid Be aware about Dengue Fever/ Dengue Hemorrhagic dehydration from high fever. You can Fever, how to recognize it and how to control the mosquito also take acetaminophen (Napa, that transmits it.Tylenol, etc) for pain and fever. Avoid

We are proud to announce that Chevron Bangladesh's Alternative Livelihood Options (ALO) project - implemented under the Initiative Triple E (I3E) in two Moulavibazar villages - has been featured in a photo-essay in the August issue of Line Rider, the global employee e-magazine. Moreover, Bangladesh was featured on the cover of the piece over other countries whose I3E projects were also included in the photo-essay, viz., South Africa, Vietnam, Thailand, U.S., etc. Given Line Rider's wide reach, this coverage affords us great visibility on the Chevron Corporation 'map'.

The main objective of the project is to provide both direct and indirect assistance to 500 families through the introduction of reliable and renewable energy sources that will lead to a marked savings in household fuel costs. Interventions include but are not limited to:

a) Installation of Solar Home Systems (SHS) in 150 disadvantaged households

b) Installation of solar Photovoltaic Panels (PV) in five primary schools

c) Distribution of Improved Cooking Stoves (ICS) amongst 500 families for healthier and environmentally-friendly cooking, reducing household expenditure on kerosene and/or firewood;

d) Installation of two bio-gas plants to convert 'wastes into wealth' and present an environmentally-friendly option through the reduced use of chemical fertilizers;

Health Watch: Dengue FeverChevron Bangladesh Health & Medical

Chevron Bangladesh Featured in August 2011 Issue of Line Rider

Resources: CDC Dengue Homepage; WHO; Mayo Clinic; PubMedHealth; MedicineNet

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Our engineers and earth scientists create a plan to fully Step 1: Explorationand efficiently exploit the newly discovered oil or gas We discover natural gas.field. Additional wells are usually drilled and “completed,” in which an assembly of downhole tubulars and equipment is installed to enable safe and efficient production from the well.

Once this development phase is completed, production begins and hydrocarbons are extracted from the field.

Step 3: LiquefactionWe convert the natural gas to a liquid.

Natural gas exists in subsurface reservoirs as either "associated gas," when it is in contact with or dissolved in crude oil, or "non-associated gas" when found without crude oil. The process for finding either is the same. Earth scientists and engineers use highly sophisticated technology in their search: They use gravity or magnetic surveys to model large-scale subsurface features that may contain hydrocarbons (organic compounds of hydrogen and carbon). They also use seismic data to further define subsurface geometry and architecture. Finally, we rank all our prospects globally and select the

The natural gas is transported from the gas field to the very best to drill. Discoveries with the most encouraging

liquefaction plant via pipelines. The gas is processed to results undergo appraisal drilling to better understand

remove contaminants (such as hydrogen sulfide, carbon the resource size and reduce uncertainties. About 75

dioxide and water) and natural gas liquids (such as percent of our discoveries will eventually be developed.

propane and butane, which can be further processed and What we ultimately produce from these discoveries

sold). During liquefaction, the natural gas is cooled to depends on the development concept we use.

minus 260 degrees Fahrenheit (-162 degrees C), which condenses it to a liquid. In this liquid form, the gas takes

Step 2: Production up only 1/600 of the volume of the gaseous state. LNG is We extract natural gas and other resources from the field. normally processed by 'trains,' which are independent

units of processing.

Step 4: TransportationWe ship the LNG to markets.

The liquefied natural gas may be stored at atmospheric pressure in large, highly insulated tanks until it is to be shipped to market. The LNG flows from the tanks through pipelines, designed to withstand the very low (cryogenic) temperatures, to specially designed double-hulled tankers. The LNG is loaded into well-insulated storage tanks onboard ship and transported to market.

along the pipelines maintain the level of pressure needed to keep the natural gas flowing.

Step 7: Marketing & TradingWe market LNG to large utilities and resellers.

Step 5: RegasificationLNG is warmed and turned back into a gas.

The marketing and trading of LNG can occur at various steps along the value chain. LNG projects require significant investment, so long-term sales agreements are often negotiated before the liquefaction plant is even built. Long-term contracts between buyers and sellers have been the norm in the global LNG market, but contracts are evolving to include more flexible commercial arrangements and sales of LNG cargoes on the spot market. In countries and regions where natural gas is a traded commodity, such as the U.S. and Europe, LNG may be sold on the natural gas market the same as

Once an LNG ship reaches its destination, the LNG is pipeline gas.typically unloaded at a regasification terminal where it is stored in its cold liquid state until needed. Then the LNG is

Liquefied Natural Gas (LNG)warmed in vaporizers and returned to its gaseous state Much of Chevron's and the world's undeveloped natural for delivery to customers.gas resources exist far from markets and infrastructure. One of our options for commercializing these stranded natural gas resources is to convert the gas to a liquid Step 6: Transportation & Distributionform, which enables it to be transported efficiently by The natural gas is distributed by pipeline to customers.vessels across oceans.

What Chevron Is DoingNatural gas is a growing segment of Chevron's energy portfolio. Its natural gas resources span six continents, with significant holdings in Africa, Australia, Southeast Asia, the Caspian region, Latin America and North America. Chevron has a net production of more than 5 billion cubic feet of natural gas per day, including equity shares in affiliates, and we expect to substantially increase this volume over the next decade.

Although world gas resources are plentiful, the regions with The natural gas is fed into a network of pipelines for natural gas surpluses are often oceans away from the distribution to residential, commercial and industrial greatest demand. Chevron has the capabilities to meet the customers, including power plants. There are typically challenges of developing resources and delivering natural several systems of pipeline networks – including gas to markets where its use is growing.transmission systems that carry the natural gas long distances to where it is needed – and distribution systems Chevron is engaged in every aspect of the natural gas that deliver it to customers. Compressors at intervals bus iness—product ion, l iquefact ion, sh ipping,

Energy 101 :Liquefied Natural Gas Stream

Depicts three workers giving 3D presentation at Tengizchevroil Visualization Center, Atyrau office.

The North Rankin field is part of the Australia's North West Shelf Project and is a gas platform used for extracting and sorting liquefied petroleum gas and then for delivering it to the NWSGP's onshore treatment plant.

Aerial view of onshore Escravos Gas Plant and tank farm, Nigeria.

Liquefied Natural Gas membrane system tank for a LNG carrier using GTT Mark III (MK III) Membrane Design, by Gaztransport & Technigaz, located at the work-sites of the Atlantic, St. Nazaire, France. G.T.T. is a naval engineering company that designs and develops the membrane Cargo Containment System and Cargo Handling System for LNG transportation.

Aerial view of Karratha gas plant (liquefied natural gas), Australia.

Depicts fourth gas-processing train, which supplies liquefied natural gas to markets in Japan and South Korea. Australia, North West Shelf Venture.

Working at desk in trading room, Chevron Houston offices, Houston, Texas, U.S.

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regasification, pipelines, marketing and trading, power Olokola LNG Project, Nigeria – Chevron has a 19.5 percent generation, and gas-to-liquids (GTL). interest in the OKLNG Free Zone Enterprise in Nigeria.

Plans have been developed to build a multitrain LNG facility and marine terminal located northwest of Escravos.Chevron holds the largest natural gas resource position in Escravos, Nigeria – Chevron is partnering with the Australia through the Gorgon and Wheatstone projects, Nigerian National Petroleum Corporation to construct a the Browse Basin, and the North West Shelf Venture. It GTL plant in Escravos, Nigeria. It will convert gas from also has significant natural gas holdings in western Africa, Chevron's Escravos Gas Plant to GTL diesel fuels, GTL Bangladesh, China, Indonesia, Kazakhstan, North naphtha and liquefied petroleum gas. At the end of 2010, America, the Philippines, South America, Thailand, the site construction was 53 percent complete.United Kingdom and Vietnam.

Niger Delta, Nigeria – Chevron is developing several gas Australiaprojects in the Niger Delta to increase gas supplies for North West Shelf Venture – Chevron is a longtime national and regional power generation and reduce participant in Australia's North West Shelf Venture, routine natural gas flaring.which operates offshore producing fields and extensive

onshore facilities that include five liquefied natural gas (LNG) processing units, or trains, and a domestic gas Asiaplant. Approximately 70 percent of the natural gas is sold Thailand – The Platong II project in the Gulf of Thailand is in the form of LNG to major utilities in Japan, South Korea expected to boost Thailand's domestic gas production by and China, primarily under long-term contracts. 10 percent. Chevron announced first production at

Platong II in October 2011.

Gorgon Project – Chevron is leading the development of Australia's largest single-resource project. The Gorgon Vietnam – The Vietnam Block B Gas Development will Project includes a three-train, 15.0 million-metric-ton- supply gas to utilities in southern Vietnam. A final per-year LNG facility on Barrow Island, a domestic natural investment decision for this offshore development is gas plant and a carbon dioxide injection project. expected in 2011.Construction and other activities for the Gorgon Project progressed during 2010 with the awarding of more than China – The Chuandongbei project is under way in China's $25 billion of contracts and purchase orders, clearing of Sichuan Basin. Upon completion, the full development will the plant site, completion of the first stage of the include two new sour gas processing plants and five construction village, commencement of module natural gas fields with gathering systems and tie-ins to fabrication, and progression of studies on the possible the plants.expansion of the project.

Latin AmericaWheatstone Project – The Chevron-operated Wheatstone

Delta Caribe Project, Venezuela – Chevron has been Project includes a two-train, 8.9 million-metric-ton-per-

invited to participate in Venezuela's first LNG train. We year LNG facility and a separate domestic gas plant, both

hold interests in the offshore Plataforma Deltana region, at Ashburton North, on the West Pilbara coast of

which would provide the initial natural gas supply to this Australia. The facilities will be fed by natural gas from the

project.Wheatstone and Iago fields, as well as third-party gas. The final investment decision was announced in September

North America and Europe2011.The company is adding more shale gas acreage to its portfolio, including recent acquisitions in the U.S. state of Browse LNG Development – The three gas fields that Pennsylvania, western Canada and Eastern Europe. Shale make up the Browse development—Brecknock, Calliance gas refers to natural gas found in fine-grained and Torosa—are in the Browse Basin, about 155 miles (250 sedimentary rock. Locked in very small spaces within the km) off the far northwest coast of Western Australia. In reservoir rock, the gas is extracted using advanced 2010, Chevron and the other Browse LNG development technologies that allow it to flow to production wells.participants began design evaluation for the fields.

Chevron will continue to find, develop and deliver natural Africagas to meet the rising demand for energy.

Angola LNG Project – Chevron has a 36.4 percent interest in Angola LNG Limited, which will operate the country's first LNG plant. Construction continued throughout 2010 on the 5.2 million-metric-ton LNG plant in Soyo, Angola.

http://www.chevron.com/stories/#/allstories/lng/howitworks/Facility startup is expected in 2012.

The Smiling Sun Clinic of the Sultanas of BibiyanaToufiq Maruf, On Return from Habiganj

When asked about the location of Bibiyana, old man gastric, diarrhea, tuberculosis, typhoid, and diabetes. We Anwar Hossain of Nabiganj's Kosba village lets out a also get patients with ophthalmological issues. We're toothless smile and replies in glee, “What are you talking equipped with nearly all the instruments necessary for all about? Bibiyana isn't a place: it was a river!” sorts of blood tests.”

Bibiyana was found after a prolonged search. Now a Paramedic Agnes Orpa says, “Expectant mothers have narrow canal, Bibiyana was once a fast-flowing branch of the most facilities here. We have facilities for regular the Kushiara. At the heart of that very Bibiyana lies the check-ups, so there is no need for anyone to travel to a Bibiyana Gas Field, run by an International Oil Company. distant city.”The area is heavily protected. Though the locals can't enter the plant's confines, they gaze at the gas field that Local businessman Shah Nur Ali, a diabetic, has just lies on the banks of their Bibiyana River, at the flame that stopped by the clinic to collect his regular check-up card, emits a bright orange glow – one that persists even during for which he will have to pay Tk 40. With this card, all he the monsoon months. will need to pay is a service charge of Tk 20 every time he

wishes to consult a physician. Medicines and routine tests Facing that very flame, a local housewife Sultana Razia will also be subsidized. stands on the concrete road before her and says, “I had fever and a burning sensation while passing urine. I went However, Clinic Manager Jahangir Alam tells us that the to the clinic and had a blood test.” Standing next to her clinic provides free treatment to the ultra-poor. He says, with an umbrella over her head is Alenur Bibi, who says “We also have an ambulance service with modern that she's had fever for quite a few days and has also been equipment. Anyone can avail this service to transport a experiencing the same burning sensation. patient after paying the nominal fee. But we're still unable

to do the ultra sonograms and ECG since we don't have They are surrounded by a vast empty expanse of crop electricity.” The equipment has since arrived.land, with no human habitation in sight for miles at a stretch. Apart from the massive, all-imposing structure of According to Technologist Johnny Das, “We do a range of the gas field, we can't see anything. Where is the clinic in blood tests here, including for ICT-TB, HB, bilirubin, these deserted surroundings? That too, where one can creatinin.”get a blood test done! Right then, a young boy on a motorcycle rides by and chirps an instant reply, “Just

Patient Alamgir Hossain attests, “The clinic is like a ahead, around the bend of the road is a two-storied

dream. Those who are unfamiliar with the city are able to building. That's a clinic. It has doctors-nurses; all sorts of

get all sorts of tests and treatment done at subsidized tests and examinations are done.”

rates.” However, an NGO official by the name of Momtaz Begum complains, “Even though this clinic has all manner

Travelling ahead provides a first glimpse of the clinic. The of facilities, there are no arrangements for childbirth. We Smiling Sun clinic, in a place called Karimpur. This is a end up having to take expectant mothers to those same village under Inathganj Union of Nabiganj Upazila of distant health-centers.”Habiganj District. Women and children wait in front of the clinic, braving a light drizzle. Men also wait alongside

The Clinic Manager informs us, “Sponsored by Chevron them. On the wall is posted a list of tests to identify a

Bangladesh, three Smiling Sun clinics are being run by a range of diseases.

local NGO called Sylhet Samaj Kalyan Sangstha (SSKS). On average, each clinic serves 2,000 patients on a

The clinic's physician Niaz Murshed (M.B.B.S) says, “There is monthly basis, most of whom are women and children. no end to the illnesses and ailments that affect people here. Chevron bears the costs of medical equipment, medicines Most are affected by that same burning sensation during and the staff salaries.”urination. Women especially, 75% are affected by this.

Located on the way back to the city from Karimpur village Dr. Niaz also informs us, “We also get patients affected by is Shastipur village, under Dighalbak Union. Here also is a

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similar Smiling Sun clinic. Though this clinic has no impatiently in the next room anxiously peep in to talk to facilities for tests and examinations, it is crowded with their doctor. A young mother by the name of Minoti Rani female patients, the reason being its resident physician is shows us the child sitting on her lap and says, “My child was a woman. It is as though the little village considers itself born thanks to the treatment I received from this doctor.”blessed by virtue of this fact alone!

Clinic Manager, Birbikram Choudhury says, “This clinic Dr. Afroza Sharif says, “I've been looking after this clinic has proved to be extremely beneficial for the women and for only six months now. Since there are no arrangements children of the area. Men are also seen to.” Birbikram tells for accommodation, I have to commute to work every day us, “Still, this clinic does have its fair share of problems. from the district headquarters, a fair distance away. But We can't admit patients. Nor do we have facilities for what gives me a great deal of happiness are the smiles childbirth. The community would have been benefitted that I'm able to bring on the faces of the women I serve. even more if we were able to provide these services.” They pray for my wellbeing every day.”

(This article, translated from the Bengali, first appeared in While I'm speaking to the physician, visitors waiting the Friday, July 8th issue of Kaler Kantho)

The three-year Shobar Jonno Shikkha (Education for All) project, sponsored by Chevron Bangladesh, celebrated its conclusion in a formal ceremony. Implemented in 15 villages of Nabiganj Upazila near Chevron's Bibiyana Gas Field, the project increased access to cost-effective Non-Formal Primary Education (NFPE) for over 400 vulnerable and out-of-school children aged 7-14. It formed part of Save the Children's larger nationwide SHIKHON program.

“Alongside its contribution to the nation's energy sector, Chevron Bangladesh also undertakes various development initiatives for the communities living near its areas of operation. This is truly praiseworthy. The children present here today are evidence of this program's high quality.” So said Chief Guest, Sylhet's Deputy Commissioner, Khan Mohammad Bilal. Special Guest, Chevron Asia-South's Policy, Government & Public Affairs (PGPA) General Manager, William A. Koetzle, lauded the NFPE model's pivotal role in increasing basic education competencies for underserved children. He also said, “I am very proud of the fact that today, as many as 30,000 families are engaged with Chevron Bangladesh's community engagement initiatives. This is quite an impressive figure and it is our privilege to be able to walk hand-in-hand with so many people in a journey that I believe will benefit us all.” Opening remarks were made by Chevron Bangladesh's External Affairs Manager, Obaidullah Al-Ejaz. Others present on the occasion included, Chevron Asia-South's Lead Advisor, Corporate Responsibility, Naser Ahmed; SHIKHON Program Director at Save the Children, Talat Mahmud; District Education Officer, Jahangir Alam, and District Primary Education Officer, Hazrat Ali.

The results of the Shobar Jonno Shikkha project have been impressive. All 437 students passed their grade-end exams, with one in four scoring 80% or higher. The program also includes a six-month 'school-readiness' component and encourages parents to play an active role in the progress of their children's education.

Results of “Education for All”

Project with Save the Children

Chevron Celebrates

Pictured here with some students of the Chevron-sponsored Education for All project are, standing in the 2nd row, 4th from left onwards, Chevron Asia-South's Policy, Government & Public Affairs (PGPA) General Manager, William A. Koetzle; Sylhet's Deputy Commissioner, Khan Mohammad Bilal; Chevron Asia-South's Lead Advisor, Corporate Responsibility/Community Engagement, Naser Ahmed; Chevron Bangladesh's External Affairs Manager, Obaidullah Al-Ejaz; Save the Children's Program Director, SHIKHON, Talat Mahmud; District Primary Education Officer, Hazrat Ali, and District Education Officer, Jahangir Alam. Other Chevron staff also pictured.

SSFP Holds Conference on Promoting Public-Private Partnerships

Chevron Bangladesh's Operations Director, T. Ryder Booth flanked by USAID/Bangladesh Mission Director, Richard Greene, and SSFP's Chief of Party, Dr. Zafarullah Gill, as he hands over a cheque to USAID to fund operational costs of three Chevron-sponsored clinics for the current year.

Dr. Captain (Retd) Mujibur Rahman Fakir, State Minister, Ministry of Health & Family Welfare, speaking as Chief Guest at the Public-Private Partnership Conference, jointly organized by Chevron and Smiling Sun Franchise Program.

The Smiling Sun Franchise Program (SSFP) organized a “Public Private Partnership Conference” at Spectra C o nv e n t i o n C e n t e r o n J a n u a r y 1 0 , 2 0 1 2 . USAID/Bangladesh Mission Director, Richard Greene, chaired the event with Dr. Capt (Retd) Mozibur Rahman Fakir, State Minister of Health and Family Welfare, as the chief guest. Md. Humayun Kabir, Secretary of the Ministry of Health and Family Welfare; Mr. Naba Bikram Kishore Tripura, Secretary of the Ministry of Chittagong Hill Tracts Affairs, Mr. AMM Neazuddin, Director General, Directorate General of Family Planning were present as special guests. Among others, Ms. Khadijat Mojidi, Office of Population, Health, Nutrition & Education (OPHNE) Director of USAID, senior GoB officials, representatives from international and local NGOs, and private organizations attended the conference. Organized in partnership with Chevron, the objective of the conference was to promote PPPs in the health sector and share SSFP's experience and lessons learned.

Speaking on the occasion, the State Minister of Health said that GoB- NGO Collaboration and Public Private Partnerships have been identified as one priority of the present government's health program. In the health sector program document i.e. PIP, he said, Government has planned to involve NGOs and the private sector through PPPs for family planning services in urban slums and in hard-to-reach and under-served areas in Sylhet, Sunamganj, Chittagong including CHTs and other regions such as Mymensing, Dinajpur and Char areas.

In his keynote speech, Chief of Party of SSFP said that the private sector has been an increasingly important source of resources for health services. Thus far, SSFP has established 10 effective partnerships with private companies that have resulted in the opportunity to serve a vast number of clients or to improve operational capacity.

T. Ryder Booth, Director, Operations for Chevron Bangladesh, handed over a replica cheque of Tk 11 million to the USAID Mission Director as annual operating costs of three Chevron-sponsored clinics.

The Public Private Partnership Conference brought together a select group of Smiling Sun's potential and existing partners, representatives from the Government of Bangladesh, USAID, the donor community and other relevant stakeholders. This event underscores the importance of U.S. President Obama's Global Health Initiative in Bangladesh, which promotes strategic public-private partnerships to increase host country ownership and sustainability to support the common goals of helping Bangladesh achieve its Millennium Development Goals in health.

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Chevron Asia-Pacific Exploration & Production (CAPEP) President, Melody Meyer; CAPEP's Policy, Government & Public Affairs (PGPA) General Manager, Peter Eggleston; Chevron Bangladesh President, Geoff Strong; External Affairs Manager, Obaidullah Al-Ejaz, and other staff recently paid a visit to one of the Chevron-sponsored Smiling Sun Clinics near the Bibiyana Gas Field. The clinic is one of three static clinics supported by Chevron for the Bibiyana and Moulavi Bazar Gas Field communities, and is part of USAID's Smiling Sun Franchise Program (SSFP) offering affordable, quality health-care services for the locals, particularly the underprivileged. Representing SSFP were Health Officer, Dr. Arefin Amal Islam, who conducted a tour of the premises for the visitors, Health Operations Management Specialist, Andrea Poling, and others. During her visit, she inaugurated an ultrasound machine, and spent some time talking to the clinic staff and several patients.

During her visit, Meyer said, “I had heard about the wonderful work being done by the clinics, but would not have believed the significance of the impact had I not seen it for myself. We are proud of our ties with SSFP, and look forward to seeing this partnership continue as more people from our host communities get the affordable, quality health care they need. I would personally like to applaud the efforts of the clinic staff and caregivers, as they serve the community through their sincere efforts and dedication.”

Every month, approximately 6,000 receive a range of services from all three clinics. These include awareness-raising sessions on maternal & child health, family planning, hygiene & sanitation, laboratory and diagnostic services, immunization, ambulance transfer to major hospitals nearby when necessary. These clinics also have a network of 32 satellite clinics, through which services are delivered at the doorsteps of the communities.

This was a part of Meyer's visit to the Bibiyana Gas Plant, where she held a town-hall for the employees, congratulating them for their part in the Profit Center's exemplary safety performance.

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Melody Meyer addressing employees of the Bibiyana Gas Plant during a town-hall held during her recent visit there

The External Affairs, Government Affairs and Legal functions held a joint offsite session at a resort in mid-December. The two-day event presented an opportunity to reflect on accomplishments and lessons from the past year, and plan for the year ahead. In attendance were Chevron Asia-South's Policy, Government & Public Affairs (PGPA) General Manager, William Koetzle (2nd row, 4th from left); Lead Advisor, PGPA, Ekarach Iamsudha (3rd row, 1st from right), and Chevron Asia Pacific Exploration & Production (CAPEP) Media Adviser, Gareth Johnstone (seated at center). Also pictured here, along with other staff members are Director, PSC, Policy & Government Affairs, Ismail Chowdhury (2nd row, 3rd from left), Manager, External Affairs, Obaidullah Al-Ejaz (2nd row, 7th from left), and Director, Legal, Dr. Lambert Shumbusho (3rd row, 2nd from left)

Chevron Bangladesh Moulavi Bazar Gas Plant Superintendent, Imrul Kabir, seen here with some students of Bhairab Ganj Dwi-Pakshik High-School at their brand new Computer Learning Center. Five desktop computers, to be used as teaching aids and research tools, have been funded by Chevron Bangladesh, while technical support and teaching assistance will be provided by House of Volunteers. The Learning Center was formally inaugurated at a simple ceremony on Tuesday - attended by students, Bhairab Ganj Dwi-Pakshik High-School Headmaster, Shyamol Kanti Biswas; School Management Committee representative, Haji Abdus Salam; House of Volunteers' Hasan Habibul Latif, Chevron Bangladesh's Field Community Engagement Manager, Zulfikar Ahmed Chowdhury, among others. More recently, five computers have also been donated to Nadampur High School, near the Bibiyana Gas Field.

Melody Meyer Visits Bibiyana Community Clinic

Pictured here with CAPEP President, Melody Meyer (center) during her recent visit to a Bibiyana community clinic are CAPEP's PGPA General Manager, Peter Eggleston and Bangladesh Profit Center Country Manager, Geoff Strong (5th and 6th from left, respectively). Along with other Chevron Bangladesh staff, also pictured (3rd from left) is External Affairs Manager, Obaidullah Al-Ejaz.

Some staff members of the Bibiyana Gas Plant at an XYZ Networking & Mentoring event held last September at the Plant's living quarters. At the center is General Manager, Base Business & Operations, visiting from Houston, Reggie Judice. Also pictured 6th and 7th from left respectively are Bibiyana Gas Plant Superintendent, John Russum, and Chevron Bangladesh Operations Director, T. Ryder Booth.

Some Moulavibazar-based journalists were taken on a visit to Chevron Bangladesh's MB-B drilling pad location

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Chevron's CSR at a Glance, 2011

About families impacted via health, education, enterprise development

and environment initiatives

30,000

Over

scholarships distributed1,000

Salary support for Bibiyana 3high-schools, teachers per school

3

Nearly

employees donated blood to mark World Blood Donor Day600

Nearly saplings planted near our operational areas

21,000

4 passenger sheds for communities near Bibiyana

Gas Field

2

1,000

free outdoor eye-camps held in Moulavibazar,

attended by over

67 free cataract surgeries sponsored

10 desktop computers donated to two Bibiyana &

Moulavibazar schools

20

20

sewing machines and

mechanical toolboxes for 40 men and women

in Moulavibazar

38 solar panels distributed to two Moulavibazar villages

262 Improved Cooking Stoves (ICS) distributed

to two Moulavibazar villages

11 Moulavibazar-based energy journalists went on site visit to the MB-B drilling pad location

130 energy journalists from Moulavibazar, Komolganj, Sreemongal and Dhaka trained

on the fundamentals of oil and gas exploration & production