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
	2017			2016			2017			2016			2015
Upstream
Tengizchevroil	$	13,121		$	11,414		$	2,581		$	1,380		$	1,939
Petropiar	1,152			977			175			326			180
Caspian Pipeline Consortium	1,151			1,245			155			145			162
Petroboscan	1,080			982			154			(133		)	219
Angola LNG Limited	2,625			2,744			31			(282		)	(417		)
Other	1,714			1,791			100			(193		)	135
Total Upstream	20,843			19,153			3,196			1,243			2,218
Downstream
GS Caltex Corporation	3,826			3,767			290			373			824
Chevron Phillips Chemical Company LLC	6,200			5,767			723			840			1,367
Caltex Australia Ltd.	—			—			—			—			92
Other	1,251			1,118			230			209			186
Total Downstream	11,277			10,652			1,243			1,422			2,469
All Other
Other	(15		)	(16		)	(1		)	(4		)	(3		)
Total equity method	32,105			$	29,789		$	4,438		$	2,661		$	4,684
Other at or below cost	392			461
Total investments and advances	$	32,497		$	30,250
Total United States	$	7,582		$	7,258		$	788		$	802		$	1,342
Total International	$	24,915		$	22,992		$	3,650		$	1,859		$	3,342

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, 2017, the company’s carrying value of its investment in TCO was about $130 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. Included in the investment is a loan to TCO to fund the development of the Future Growth and Wellhead Pressure Management Project with a balance of $2,060, including accrued interest. See Note 8, on page 63, 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, 2017, the company’s carrying value of its investment in Petropiar was approximately $145 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 $1,151, which includes long-term loans of $727 at year-end 2017. 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, 2017, the company’s carrying value of its investment in Petroboscan was approximately $105 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. The company also has an outstanding long-term loan to Petroboscan of $686 at year-end 2017.

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.

Other Information “Sales and other operating revenues” on the Consolidated Statement of Income includes $8,165, $5,786 and $4,850 with affiliated companies for 2017, 2016 and 2015, respectively. “Purchased crude oil and products” includes $4,800, $3,468 and $4,240 with affiliated companies for 2017, 2016 and 2015, respectively.

“Accounts and notes receivable” on the Consolidated Balance Sheet includes $1,141 and $676 due from affiliated companies at December 31, 2017 and 2016, respectively. “Accounts payable” includes $498 and $383 due to affiliated companies at December 31, 2017 and 2016, respectively.