Chevron Subsidiary Acquires Operating Interest in Western Canada LNG Project

Chevron Subsidiary Acquires Operating Interest in Western Canada LNG Project 
Proposed two-train project ideally located to meet rapidly growing 
Asia-Pacific demand 
SAN RAMON, CA, Dec. 24, 2012 /CNW/ - Chevron Corporation (NYSE: CVX) today 
announced that its indirect Canadian subsidiary, Chevron Canada Limited, will 
acquire a 50 percent operating interest in the Kitimat liquefied natural gas 
(LNG) project and proposed Pacific Trail Pipeline (PTP), and a 50 percent 
interest in approximately 644,000 acres of petroleum and natural gas rights in 
the Horn River and Liard Basins in British Columbia, Canada. 
"The Kitimat LNG development is an attractive opportunity that is aligned with 
existing strategies and will drive additional long-term production growth and 
shareholder returns," said George Kirkland, vice chairman, Chevron Corporation. 
"This investment grows our global LNG portfolio and builds upon our LNG 
construction, operations and marketing capabilities. It is ideally situated to 
meet rapidly growing demand for reliable, secure, and cleaner-burning fuels in 
Asia, which are projected to approximately double from current levels by 
2025." 
Under the terms of the agreements, Chevron Canada Limited will acquire all of 
the interests currently owned by affiliates of EOG Resources Canada Inc. and 
Encana Corporation in the proposed Kitimat LNG Project and PTP. Thereafter, 
Chevron Canada Limited will equalize interests with an Apache Corporation 
subsidiary, resulting in Chevron Canada Limited and Apache each holding a 50 
percent interest in both the Kitimat LNG Project and PTP. Operatorship of both 
facilities will transfer to Chevron Canada Limited. 
The proposed two-train Kitimat LNG Project, currently progressing through the 
Front-End Engineering and Design (FEED) phase, has a Canadian National Energy 
Board license to export 10 million tons per annum of LNG. 
Additionally, Chevron Canada Limited will acquire approximately 110,000 net 
acres in the established Horn River Basin from Encana, EOG and Apache, and 
approximately 212,000 net acres in the Liard Basin from Apache. Chevron Canada 
Limited and Apache will each hold a 50 percent interest and Apache will 
operate these two natural gas resource developments. 
The agreements are subject to regulatory reviews. 
Gary Luquette, president, Chevron North America Exploration and Production, 
said, "This investment by Chevron Canada Limited captures significant resource 
and acreage in proven and emerging natural gas basins in Canada, and is a key 
opportunity to expand our overall North America exploration and production 
portfolio. It will enable our North America operations to play an 
increasingly important role in Chevron's global growth." 
Jeff Lehrmann, president, Chevron Canada Limited, said, "We look forward to 
working with the Governments of British Columbia and Canada, First Nations, 
and local communities to grow this development, realize the project's 
long-term economic potential, and open new markets for Canadian natural gas." 
Chevron is one of the world's leading integrated energy companies, with 
subsidiaries that conduct business worldwide. The company is involved in 
virtually every facet of the energy industry. Chevron explores for, produces 
and transports crude oil and natural gas; refines, markets and distributes 
transportation fuels and lubricants; manufactures and sells petrochemical 
products; generates power and produces geothermal energy; provides energy 
efficiency solutions; and develops the energy resources of the future, 
including biofuels. Chevron is based in San Ramon, Calif. More information 
about Chevron is available at www.chevron.com. 
Cautionary Statement Relevant to Forward-Looking Information for the Purpose 
of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 
1995. 
Some of the items discussed in this press release are forward-looking 
statements about Chevron and Chevron Canada Limited's activities in Canada. 
Words such as "anticipates," "expects," "intends," "plans," "targets," 
"forecasts," "projects," "believes," "seeks," "schedules," "estimates," 
"budgets," "outlook" and similar expressions are intended to identify such 
forward-looking statements. The statements are based upon management's current 
expectations, estimates and projections; are not guarantees of future 
performance; and are subject to certain risks, uncertainties and other 
factors, some of which are beyond the company's control and are difficult to 
predict. Among the important factors that could cause actual results to differ 
materially from those in the forward-looking statements are changes in prices 
of, demand for and supply of crude oil and natural gas; actions of 
competitors; the inability or failure of the company's joint-venture partners 
to fund their share of operations and development activities; the potential 
failure to achieve expected net production from existing and future crude oil 
and natural gas development projects; potential delays in the development, 
construction or start-up of planned projects; the potential disruption or 
interruption of the company's net production or manufacturing facilities or 
delivery/transportation networks due to war, accidents, political events, 
civil unrest, or severe weather; government-mandated sales, divestitures, 
recapitalizations, industry-specific taxes and changes in fiscal terms or 
restrictions on scope of company operations; foreign currency movements 
compared with the U.S. dollar; and general economic and political conditions. 
The reader should not place undue reliance on these forward-looking 
statements, which speak only as of the date of this press release. Unless 
legally required, neither Chevron nor Chevron Canada Limited undertakes any 
obligation to update publicly any forward-looking statements, whether as a 
result of new information, future events or otherwise. 
Tim Murphy - (office) 709-757-6108; (mobile) 709-728-9146 Leif Sollid - 
(office) 403-234-5192; (mobile) 403-604-2269 
SOURCE: Chevron Canada Limited 
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http://www.newswire.ca/en/releases/archive/December2012/24/c3307.html 
CO: Chevron Canada Limited
ST: California
NI: OIL MNA  
-0- Dec/24/2012 14:08 GMT
 
 
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