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
	2018			2017			2018			2017			2016
Upstream
Tengizchevroil	$	16,017		$	13,121		$	3,614		$	2,581		$	1,380
Petropiar	1,361			1,152			317			175			326
Petroboscan	1,315			1,080			357			154			(133		)
Caspian Pipeline Consortium	1,022			1,151			170			155			145
Angola LNG Limited	2,496			2,625			172			27			(282		)
Other	1,541			1,714			19			104			(193		)
Total Upstream	23,752			20,843			4,649			3,196			1,243
Downstream
Chevron Phillips Chemical Company LLC	6,218			6,200			1,034			723			840
GS Caltex Corporation	3,924			3,826			373			290			373
Other	1,383			1,251			273			230			209
Total Downstream	11,525			11,277			1,680			1,243			1,422
All Other
Other	(16		)	(15		)	(2		)	(1		)	(4		)
Total equity method	35,261			$	32,105		$	6,327		$	4,438		$	2,661
Other non-equity method investments	285			392
Total investments and advances	$	35,546		$	32,497
Total United States	$	7,500		$	7,582		$	1,033		$	788		$	802
Total International	$	28,046		$	24,915		$	5,294		$	3,650		$	1,859

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, 2018, the company’s carrying value of its investment in TCO was about $120 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 7, 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 heavy oil Huyapari Field and upgrading project in Venezuela’s Orinoco Belt. At December 31, 2018, the company’s carrying value of its investment in Petropiar was approximately $136 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 39.2 percent interest in Petroboscan, a joint stock company which operates the Boscan Field in Venezuela. At December 31, 2018, the company’s carrying value of its investment in Petroboscan was approximately $97 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 $626 at year-end 2018.

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 $1,022, which includes long-term loans of $468 at year-end 2018. 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.

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.

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

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.

Other Information “Sales and other operating revenues” on the Consolidated Statement of Income includes $10,378, $8,165 and $5,786 with affiliated companies for 2018, 2017 and 2016, respectively. “Purchased crude oil and products” includes $6,598, $4,800 and $3,468 with affiliated companies for 2018, 2017 and 2016, respectively.

“Accounts and notes receivable” on the Consolidated Balance Sheet includes $884 and $1,141 due from affiliated companies at December 31, 2018 and 2017, respectively. “Accounts payable” includes $631 and $498 due to affiliated companies at December 31, 2018 and 2017, respectively.