Chevron 2006 Annual Report Download - page 22

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day. During the year, we also began construction on
the Tahiti development in the deepwater U.S. Gulf of
Mexico and completed key components of a fl oating
production, storage and offl oading vessel for the
Agbami development in Nigeria’s deep water. In
Canada, we approved a net additional $2 billion in-
vestment in the Athabasca Oil Sands Project, which
will increase design capacity from 100,000 barrels
of bitumen per day to more than 255,000 barrels
per day. Chevron has a 20 percent interest.
In 2006, we committed to develop other major
discoveries. Offshore Brazil, we plan to develop
the Frade Field, our fi rst oil fi eld development
in that country. Frade is expected to begin produc-
ing in early 2009. Two years after startup it is
expected to reach a maximum production rate of
90,000 barrels of oil-equivalent per day. We also
announced plans to develop the Great White,
Silvertip and Tobago fi elds in the deepwater U.S.
Gulf of Mexico.
EXPLORATION SUCCESSES Chevron has one
of the most robust and successful exploration pro-
grams in the industry. The foundation for our string
of discoveries is the use of proprietary technology
that helps us map deepwater reservoirs with unprec-
edented clarity. In 2006, we announced signifi cant
crude oil discoveries in deepwater Nigeria and the
U.S. Gulf of Mexico. We also made two major natural
gas discoveries offshore Western Australia, both
within the giant Greater Gorgon Area, which we plan
to develop.
During the year, we acquired new exploration acre-
age in Canada, in the Norwegian Barents Sea, in the
deepwater U.S. Gulf of Mexico and offshore Western
Australia. We also increased our acreage in Canada’s
Athabasca oil sands region.
To help maintain our leading position in deepwater
exploration and production, we awarded a contract
for the construction of a state-of-the-art drill ship
that is expected to have the most advanced drilling
capabilities in the offshore drilling industry. Expected
to be delivered in 2009, it will be dedicated exclu-
sively to Chevron for a fi ve-year period.
Upstream
OPERATING HIGHLIGHTS
2020