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 following table. 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
	2015			2014		2015			2014			2013
Upstream
Tengizchevroil	$	8,077		$	7,319	$	1,939		$	4,392		$	4,957
Petropiar	679			794		180			26			339
Caspian Pipeline Consortium	1,342			1,487		162			191			113
Petroboscan	1,163			917		219			186			300
Angola LNG Limited	3,284			3,277		(417		)	(311		)	(111		)
Other	2,158			2,316		135			229			214
Total Upstream	16,703			16,110		2,218			4,713			5,812
Downstream
GS Caltex Corporation	3,620			2,867		824			420			132
Chevron Phillips Chemical Company LLC	5,196			5,116		1,367			1,606			1,371
Caltex Australia Ltd.	—			1,161		92			183			224
Other	1,077			1,048		186			180			199
Total Downstream	9,893			10,192		2,469			2,389			1,926
All Other
Other	(18		)	33		(3		)	(4		)	(211		)
Total equity method	$	26,578		$	26,335	$	4,684		$	7,098		$	7,527
Other at or below cost	532			577
Total investments and advances	$	27,110		$	26,912
Total United States	$	6,863		$	6,787	$	1,342		$	1,623		$	1,294
Total International	$	20,247		$	20,125	$	3,342		$	5,475		$	6,233

^*2014 conformed to 2015 presentation.

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), which operates the Tengiz and Korolev crude oil fields in Kazakhstan. At December 31, 2015, the company’s carrying value of its investment in TCO was about $150 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 8, on page FS-34, for summarized financial information for 100 percent of TCO.

Petropiar Chevron has a 30 percent interest in Petropiar, a joint stock company which operates the Hamaca heavy-oil production and upgrading project in Venezuela’s Orinoco Belt. At December 31, 2015, the company’s carrying value of its investment in Petropiar was approximately $160 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.

Caspian Pipeline Consortium Chevron has a 15 percent interest in the Caspian Pipeline Consortium, a variable interest entity, which provides the critical export route for crude oil from both TCO and Karachaganak. The company has investments and advances totaling $1,342, which includes long-term loans of $1,098 at year-end 2015. The loans were provided to fund 30 percent of the initial pipeline construction. The company is not the primary beneficiary of the consortium because it does not direct activities of the consortium and only receives its proportionate share of the financial returns.

Petroboscan Chevron has a 39.2 percent interest in Petroboscan, a joint stock company which operates the Boscan Field in Venezuela. At December 31, 2015, the company’s carrying value of its investment in Petroboscan was approximately $140 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 Limited Chevron has a 36.4 percent interest in Angola LNG Limited, which processes and liquefies 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 Energy. The joint venture imports, refines and markets petroleum products, petrochemicals and lubricants, predominantly in South Korea.

Chevron Phillips Chemical Company LLC Chevron owns 50 percent of Chevron Phillips Chemical Company LLC. The other half is owned by Phillips 66.

Caltex Australia Ltd. Chevron sold its 50 percent equity ownership interest in Caltex Australia Ltd. (CAL) in second quarter 2015.

Other Information “Sales and other operating revenues” on the Consolidated Statement of Income includes $4,850, $10,404 and $14,635 with affiliated companies for 2015, 2014 and 2013, respectively. “Purchased crude oil and products” includes $4,240, $6,735 and $7,063 with affiliated companies for 2015, 2014 and 2013, respectively.

“Accounts and notes receivable” on the Consolidated Balance Sheet includes $399 and $924 due from affiliated companies at December 31, 2015 and 2014, respectively. “Accounts payable” includes $286 and $345 due to affiliated companies at December 31, 2015 and 2014, respectively.