Philippines Fact Sheet | May 2015 Philippines Fact Sheet Highlights of Operations Chevron is one of the largest investors in the Philippines, with more than $2 billion in capital investments. We market Caltex® fuels, lubricants and petroleum products. Our network of service stations, terminals and sales offices forms the backbone of our presence in the Philippines. Chevron's geothermal operations in the Philippines help make us one of the world's leading producers of geothermal energy. Through a joint venture, we operate steam fields that use heat from the earth to provide power to plants that serve key population centers in the country. Our innovations have helped make the Philippines the second-largest producer of geothermal energy in the world, after the United States, and we are exploring new opportunities for geothermal power in the Philippines. Chevron holds an interest in the Malampaya gas-to-power project, the first natural gas development and largest industrial project in the Philippines. From the Philippines, we provide operational support for Chevron offices on five continents. The workforce supplies transactional, processing and consulting services in areas ranging from finance to information technology. Business Portfolio Chevron operates through five subsidiaries in the Philippines. Our upstream companies are Chevron Malampaya LLC, Chevron Geothermal Services Company and Chevron Kalinga Ltd. Our downstream company is Chevron Philippines Inc. We also operate a business processes support organization through Chevron Holdings Inc. Exploration and Production The Malampaya gas-to-power project opened the door to the natural gas industry in the Philippines. The Malampaya natural gas field lies about 50 miles (80 km) northwest of the Philippine island of Palawan. Chevron holds a 45 percent nonoperated working interest in the field. In 2014, net daily production averaged 118 million cubic feet of natural gas and 3,000 barrels of condensate. Produced from fields at water depths of about 2,800 feet (853 m), the gas is transported 314 miles (505 km) through subsea pipelines from an offshore platform to the Batangas onshore natural gas plant on the main island of Luzon. Once treated, the gas is transported via overland pipelines to three power plants designed to generate a total of 2,700 megawatts of power. The Malampaya Phase 2 Project is designed to maintain capacity at the offshore platform. First production from the infill wells began in 2013. First production from the compression facilities is expected in the second half of 2015. Geothermal Chevron has a 40 percent interest in Philippine Geothermal Production Company, Inc. (PGPC). PGPC develops and produces steam energy for the third-party-owned and -operated Tiwi and Mak-Ban geothermal power plants in southern Luzon. They have a combined generating capacity of 692 megawatts. Chevron also has an interest in the Kalinga geothermal prospect area in northern Luzon. The company continues to assess the prospect area. If successful, the steam resources could support 100 megawatts of capacity. www.chevron.com © 2015 Chevron Corporation. All rights reserved. Philippines Fact Sheet | 1 Marketing and Retail Chevron has about 700 Caltex® service stations in the Philippines. We sell a range of petroleum products, including Caltex with Techron® gasoline, Caltex Diesel with Techron D™, kerosene and jet fuel. Chevron has 18 facilities in the Philippines, including major terminals, depots and sales offices. Our import terminal in San Pascual, Batangas, forms the hub of our transportation and supply operations in the Philippines. Chevron also provides jet fuel for airlines at Ninoy Aquino International Airport. Chevron also markets Delo® and Havoline® lubricants, coolants and other lubricating oils and greases through distributors to consumer, commercial and industrial customers. Operational Support Chevron Holdings Inc. provides office support for various Chevron companies around the world. Areas of support include finance and accounting, human resources, information technology, customer relations and procurement. The company provides services to Chevron entities in Africa, the Asia-Pacific region, Australia, Europe and North America. In the Community Chevron works to improve the social and economic well-being of communities where we operate. We support programs focused on basic human needs, education and training, business development, and the environment. Disaster Relief Chevron's companies in the Philippines donate funds to various disaster relief organizations in the country. Caltex® fuel cards are distributed for disaster relief and recovery operations. Our employees and contractors also contribute their own time and money to disaster relief. In November 2013, immediately following Typhoon Haiyan, Chevron donated $1.5 million to the Philippine Red Cross to rehabilitate affected areas. Our subsidiaries, affiliates and employees in the Philippines made additional donations totaling approximately $70,000. In 2012, we launched Metro Weather, a public-private partnership that created a network of 30 automated weather station (AWS) units in metro Manila. They provide free, real-time weather data to help people prepare for severe weather conditions, such as tropical cyclones and severe flooding. Chevron has provided the financial, technical and infrastructure resources by hosting the AWS units at select Caltex stations. This pioneering initiative is led by Chevron in partnership with the Metro Manila Development Authority, the Manila Observatory, Globe Telecom and Ateneo de Manila University. Education and Training At Chevron, we believe that education is an important factor in the economic growth and well-being of our communities. Energy for Learning® is a long-term initiative by Chevron and our Caltex® retail brand that aims to expose people to new information, new skills and different ways of thinking. In partnership with local communities, governments and nonprofit groups, Chevron provides school supplies, refurbishes libraries and offers curriculum support. Educational programs we support include: Scholarships for 700 gifted high school and college students in need The Malampaya Foundation Inc., which provides 70 college scholarships and 950 vocational scholarships The Brigada Eskwela (School Brigade), a repair and cleaning program of the Department of Education, at a public elementary school near the Mak-Ban plant www.chevron.com © 2015 Chevron Corporation. All rights reserved. www.chevron.com © 2001-2009 Chevron Corporation. All rights reserved. Philippines Fact Sheet | 2 Caltex also partners with successful skills training programs. We work with the Don Bosco Pugad Foundation, which started the Manna From Heaven training bakery and bakeshop program, as well as its spinoff project, the Coffee & Saints Café, which teaches boys culinary and restaurant management skills. We recently began a partnership with the Mobile Mechanic, which brings skilled mechanics right to customers. Economic Development In the Philippines, Chevron supports programs that assist small businesses and offer training in agriculture, fisheries and home industries. In Kalinga Province, Chevron partnered with Kalinga Apayao State College to train members of the community and help provide access to markets for local products such as coffee, macadamia nuts, unoy (red rice), oranges and traditional crafts. Through the United People of Kalinga Enterprise Enhancement Program, we work with our partners to promote indigenous knowledge through sustainable enterprise development. Caring for the Environment In January 2014, Chevron employees witnessed the results of their environmental stewardship when 69 olive ridley sea turtle eggs hatched on a beach adjacent to Chevron's Batangas Terminal. More than 600 employees, Caltex retailers, business partners, teachers and students cleaned the beach of trash and debris, which revealed a nest containing 110 turtle eggs. We worked closely with the Department of Environment and Natural Resources and a wildlife expert to move the nest to drier ground, where the turtles hatched and made their way to the sea. Chevron has since created a sea turtle encounter training program for employees, contractors and visitors. Chevron is collaborating with the Cabiokid Foundation, Inc., the Tiwi local government and the Department of Education to establish a model farm to train teachers, students and parents in sustainable agricultural technologies. We support the Malampaya Foundation Inc., which helped local communities implement effective coastal resource management plans. In 2014, 17 conservation agreements were signed throughout the provinces of Palawan and Oriental Mindoro. Record of Achievement With more than 90 years in the Philippines, Chevron's investments and operations have made important contributions to developing the country's energy and petroleum industry. Some of our pioneering achievements include: First American oil marketer, in 1917 First geothermal developer in partnership with the Philippine government, in 1971 First multinational regional-business-operations support office recognized by the Philippine government, in 1998 Among the first natural gas developers as part of the Malampaya Deepwater Gas to Power Project Consortium, in 1999 Chevron started working in the Philippines in 1917, when The Texas Co.—later Texaco—began marketing its products through a local distributor. Texaco Philippines was formally established in 1921 and opened an office in Manila. In 1936, a joint venture between The Texas Co. and Chevron predecessor Standard Oil Co. of California created Caltex, which then took over marketing operations in the Philippines. Eleven years later, Caltex converted its Pandacan warehouse depot in Manila into its first distribution terminal in the Philippines. In 1954, Caltex inaugurated the Batangas Refinery at San Pascual, the first petroleum refinery in the Philippines. In 2003, this refinery was converted into a finished-import terminal, with a storage capacity of at least 2.5 million barrels. In 1971, Chevron Geothermal Philippines Holdings, Inc., partnered with the Philippine government to pioneer the commercial development of geothermal resources in the Philippines. www.chevron.com © 2015 Chevron Corporation. All rights reserved. www.chevron.com © 2001-2009 Chevron Corporation. All rights reserved. Philippines Fact Sheet | 3 Chevron established Chevron Holdings Inc. in 1998. In 2001, Chevron Malampaya LLC, together with the other members of the project consortium, delivered the country's first commercial gas supplies to two power generation plants. With a total capacity of 2,200 megawatts, the supply meets approximately 30 percent of the country's power needs. Another 500-megawatt gas power plant came on line in 2002. Economy The Malampaya deepwater gas-to-power project is a significant source of revenue for the Philippines. It supports the government's economic development programs and provides a reliable source of energy on the main island of Luzon. Chevron's natural gas and geothermal projects reduce the country's dependence on imported fuel through the use of clean, indigenous and reliable energy. These projects' combined capacity of more than 3,300 megawatts supplies approximately 40 percent of Luzon's power needs. Contact Us Chevron Philippines Inc. 6/F 6750 Ayala Avenue Makati City 1226 Philippines Telephone: +63.2.841.1000 Fax: +63.2.841.1092 Email for general inquiries: http://www.caltex.com/ph/contact-us/ Email for career opportunities: HRSSManilaStaffing@chevron.com Chevron Holdings Inc. Service Management Office Manila Shared Services Center 35/F Yuchengco Tower RCBC Plaza 6819 Ayala Avenue Makati City 1200 Philippines Telephone: +63.2.793.4000 Fax: +63.2.793.4422 Email for general inquiries: MSSCCommunications@chevron.com Chevron Geothermal Services Company Chevron Malampaya LLC 5/F 6750 Ayala Avenue Makati City 1226 Philippines Telephone: +63.2.845.8400 Fax: +63.2.976.6096 www.chevron.com © 2015 Chevron Corporation. All rights reserved. www.chevron.com © 2001-2009 Chevron Corporation. All rights reserved. Philippines Fact Sheet | 4 Email for general inquiries: cmllccgsccommuni@chevron.com Email for career opportunities: HRSSManilaStaffing@chevron.com Visit Caltex Philippines Updated: May 2015 CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This Web site contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “may,” “could,” “budgets,” “outlook” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forwardlooking statements, which speak only as of the date of this report. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices; changing refining, marketing and chemicals margins; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of equity affiliates; 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 production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather, other natural or human factors, or crude oil production quotas that might be imposed by the Organization of Petroleum Exporting Countries; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant investment or product changes required by existing or future environmental statutes, regulations and litigation; the potential liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets and gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; and the factors set forth under the heading “Risk Factors” on pages 22 through 24 of the Annual Report on Form 10-K of Chevron for the year ending December 31, 2014. In addition, such results could be affected by general domestic and international economic and political conditions. Other unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. All trademarks are property of Chevron Intellectual Property LLC or their respective owners. www.chevron.com © 2015 Chevron Corporation. All rights reserved. www.chevron.com © 2001-2009 Chevron Corporation. All rights reserved. Philippines Fact Sheet | 5