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
	2016			2015			2016			2015			2014
Upstream
Tengizchevroil	$	11,414		$	8,077		$	1,380		$	1,939		$	4,392
Petropiar	977			679			326			180			26
Caspian Pipeline Consortium	1,245			1,342			145			162			191
Petroboscan	982			1,163			(133		)	219			186
Angola LNG Limited	2,744			3,284			(282		)	(417		)	(311		)
Other	1,791			2,158			(193		)	135			229
Total Upstream	19,153			16,703			1,243			2,218			4,713
Downstream
GS Caltex Corporation	3,767			3,620			373			824			420
Chevron Phillips Chemical Company LLC	5,767			5,196			840			1,367			1,606
Caltex Australia Ltd.	—			—			—			92			183
Other	1,118			1,077			209			186			180
Total Downstream	10,652			9,893			1,422			2,469			2,389
All Other
Other	(16		)	(18		)	(4		)	(3		)	(4		)
Total equity method	$	29,789		$	26,578		$	2,661		$	4,684		$	7,098
Other at or below cost	461			532
Total investments and advances	$	30,250		$	27,110
Total United States	$	7,258		$	6,863		$	802		$	1,342		$	1,623
Total International	$	22,992		$	20,247		$	1,859		$	3,342		$	5,475

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, 2016, the company’s carrying value of its investment in TCO was about $140 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. In July 2016, the company made a $2,000 long-term loan to TCO to fund the development of the Future Growth and Wellhead Pressure Management Project. See Note 8, on page FS-36, 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, 2016, the company’s carrying value of its investment in Petropiar was approximately $150 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 $1,245, which includes long-term loans of $921 at year-end 2016. 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, 2016, the company’s carrying value of its investment in Petroboscan was approximately $120 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 2016.

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 $5,786, $4,850 and $10,404 with affiliated companies for 2016, 2015 and 2014, respectively. “Purchased crude oil and products” includes $3,468, $4,240 and $6,735 with affiliated companies for 2016, 2015 and 2014, respectively.

“Accounts and notes receivable” on the Consolidated Balance Sheet includes $676 and $399 due from affiliated companies at December 31, 2016 and 2015, respectively. “Accounts payable” includes $383 and $286 due to affiliated companies at December 31, 2016 and 2015, respectively.