Chevron Acquires Major Oil Sands Leases in Canada

Chevron Corporation has acquired five heavy oil leases in the Athabasca region of northern Alberta. The leases comprise more than 180,000 acres and possess an estimated 7.5 billion barrels of oil in place.

"Chevron is one of the world's leading companies in developing heavy oil, and this opportunity expands our efforts to develop high-quality, large-scale resources to enhance our production growth profile," said George Kirkland, Chevron Corporation's executive vice president, Upstream and Gas. "Our goal is to lead the industry in the selection and execution of major capital projects, and we are excited by the opportunity to build on our position in the Canadian oil sands."

Added Alex Archila, president, Chevron Canada Limited: "This acquisition places Chevron in an excellent position to pursue in situ oil sands development. It offers to opportunity to build upon our existing thermal and oil sands knowledge and capabilities."

Chevron already is active in the Canadian oil sands. The company is a 20 percent joint venture participant in the Athabasca Oil Sands Project (AOSP), which includes the Muskeg River Mine and the Scotford Upgrader. AOSP produces approximately 155,000 barrels per day. Since opening in 2003, AOSP has produced more than 100 million barrels of bitumen.

The new leases are approximately 76 miles west of Fort Mackay in northern Alberta, and 24 miles south west of AOSP. The resource has the potential for recovery using Steam Assisted Gravity Drainage (SAGD), a proven in situ technology that uses steam and horizontal drilling to extract the bitumen. Two other companies will each have the right to elect to acquire a 20 percent working interest in these leases.