Chevron 2009 Annual Report Download - page 52

50 Chevron Corporation 2009 Annual Report
FS-PB
Note 12
Investments and Advances
Equity in earnings, together with investments in and advances
to companies accounted for using the equity method and other
investments accounted for at or below cost, is shown in the
table below. For certain equity affiliates, Chevron pays its share
of some income taxes directly. For such affiliates, the equity in
earnings does not include these taxes, which are reported on the
Consolidated Statement of Income as “Income tax expense.”
Investments and Advances Equity in Earnings
At December 31 Year ended December 31
2009 2008 2009 2008 2007
Upstream
Tengizchevroil $ 5,938 $ 6,290 $ 2,216 $ 3,220 $ 2,135
Petropiar/Hamaca 1,139 1,130 122 317 327
Petroboscan 832 816 171 244 185
Angola LNG Limited 1,853 1,191 (12) (8) 21
Other 686 725 118 206 204
Total Upstream 10,448 10,152 2,615 3,979 2,872
Downstream
GS Caltex Corporation 2,406 2,601 (191) 444 217
Caspian Pipeline Consortium 852 749 105 103 102
Star Petroleum Refining
Company Ltd. 873 877 (4) 22 157
Caltex Australia Ltd. 740 723 11 250 129
Colonial Pipeline Company 514 536 51 32 39
Other 1,773 1,664 311 354 318
Total Downstream 7,158 7,150 283 1,205 962
Chemicals
Chevron Phillips Chemical
Company LLC 2,327 2,037 328 158 380
Other 28 25 7 4 6
Total Chemicals 2,355 2,062 335 162 386
All Other
Other 507 567 83 20 (76)
Total equity method $ 20,468 $ 19,931 $ 3,316 $ 5,366 $ 4,144
Other at or below cost 690 989
Total investments and
advances $ 21,158 $ 20,920
Total United States $ 4,195 $ 4,002 $ 511 $ 307 $ 478
Total International $ 16,963 $ 16,918 $ 2,805 $ 5,059 $ 3,666
Descriptions of major affiliates, including significant
differences between the company’s carrying value of its
investments and its underlying equity in the net assets of
the affiliates, are as follows:
Tengizchevroil Chevron has a 50 percent equity ownership
interest in Tengizchevroil (TCO), a joint venture formed in
1993 to develop the Tengiz and Korolev crude-oil fields in
Kazakhstan over a 40-year period. At December 31, 2009, the
company’s carrying value of its investment in TCO was about
$200 higher than the amount of underlying equity in TCO’s
net assets. This difference results from Chevron acquiring
a portion of its interest in TCO at a value greater than the
underlying book value for that portion of TCO’s net assets.
See Note 7, on page 43, for summarized financial informa-
tion for 100 percent of TCO.
Petropiar Chevron has a 30 percent interest in Petropiar, a joint
stock company formed in 2008 to operate the Hamaca heavy-
oil production and upgrading project. The project, located in
Venezuela’s Orinoco Belt, has a 25-year contract term. Prior to
the formation of Petropiar, Chevron had a 30 percent interest
in the Hamaca project. At December 31, 2009, the company’s
carrying value of its investment in Petropiar was approximately
$195 less than the amount of underlying equity in Petropiar’s
net assets. The difference represents the excess of Chevron’s
underlying equity in Petropiar’s net assets over the net book
value of the assets contributed to the venture.
Petroboscan Chevron has a 39 percent interest in Petroboscan,
a joint stock company formed in 2006 to operate the
Boscan Field in Venezuela until 2026. Chevron previously
operated the field under an operating service agreement. At
December 31, 2009, the company’s carrying value of its
investment in Petroboscan was approximately $275 higher
than the amount of underlying equity in Petroboscan’s net
assets. The difference reflects the excess of the net book value
of the assets contributed by Chevron over its underlying
equity in Petroboscan’s net assets.
Angola LNG Ltd. Chevron has a 36 percent interest in Angola
LNG Ltd., which will process and liquefy natural gas produced
in Angola for delivery to international markets.
GS Caltex Corporation Chevron owns 50 percent of GS
Caltex Corporation, a joint venture with GS Holdings. The
joint venture imports, refines and markets petroleum prod-
ucts and petrochemicals, predominantly in South Korea.
Caspian Pipeline Consortium Chevron has a 15 percent
interest in the Caspian Pipeline Consortium, which provides
the critical export route for crude oil from both TCO and
Karachaganak.
Star Petroleum Refining Company Ltd. Chevron has a 64 per-
cent equity ownership interest in Star Petroleum Refining
Company Ltd. (SPRC), which owns the Star Refinery in
Thailand. The Petroleum Authority of Thailand owns the
remaining 36 percent of SPRC.
Caltex Australia Ltd. Chevron has a 50 percent equity owner-
ship interest in Caltex Australia Ltd. (CAL). The remaining
50 percent of CAL is publicly owned. At December 31, 2009,
Notes to the Consolidated Financial Statements
Millions of dollars, except per-share amounts