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Oilfield Produced Water Successfully Desalinated Using OPUS Technology

May 6, 2008

Pittsburgh, PA – N.A. Water Systems, a Veolia Water Solutions & Technologies company, announced recently the successful full-scale demonstration of OPUS™ technology for produced water treatment at Chevron U.S.A. Inc.'s oil production field in San Ardo, CA. Chevron U.S.A. Inc. is a fully-owned subsidiary of Chevron Corporation. This project, the first produced water desalination facility in the world that uses this unique technology, enables Chevron to expand its current area of steam-enhanced production into an idled, previously developed portion of the field.

Produced water — the water generated when oil is brought out of the ground — contains high levels of boron, silica, organics and free oil. Previously, most of Chevron's produced water in San Ardo was injected into deep disposal wells; however, capacity was limited. OPUS removes contaminants sufficiently for treated produced water to be discharged into shallow groundwater recharge basins, allowing greater oil production and replenishing precious water resources.

OPUS (Optimized Pretreatment and Unique Separation) technology was developed through the joint efforts of Chevron and N.A. Water Systems. At the San Ardo site, the OPUS system is sized to treat 50,000 barrels of water per day. This technology consists of multiple treatment processes, including degasification, chemical softening, media filtration, ion exchange softening, cartridge filtration and reverse osmosis.

The overall project also included expansion of water softening facilities. The softened water is used in Chevron's once-through steam generators, which produce the steam for oil extraction.

Following a 60-day reliability test, the water treatment facilities will be operated by Veolia Water North America, a leading operating services provider in North America, under contract with Chevron.

Chevron is one of the world's leading integrated energy companies. With more than 59,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, and operate across the entire energy spectrum — producing and transporting crude oil and natural gas; refining, marketing and distributing fuels and other energy products and services; manufacturing and selling petrochemical products; generating power; and developing and commercializing the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.

Company Information
N.A. Water Systems is a provider of solutions for air, water and wastewater issues ranging from regulatory compliance assistance to complete turnkey installation of treatment systems. With expertise based on 95 years of experience and a staff of approximately 160 employees, N.A. Water Systems meets the needs of both industrial and municipal customers. N.A. Water Systems is a Veolia Water Solutions & Technologies company.

Veolia Water Solutions & Technologies is the technological subsidiary of Veolia Water. Veolia Water Solutions & Technologies (VWS), which includes six subsidiaries in North America (Crown Solutions, HPD, John Meunier, Kruger, N.A. Water Systems and Whittier Filtration), is a world leader in engineering and technological solutions in water treatment for industrial companies and municipal authorities. VWS is also one of the world's major design-build providers of water and wastewater treatment facilities. Present in more than 55 countries, with 7100 employees, Veolia Water Solutions & Technologies had revenue of $2.3 billion in 2006.

VEOLIA WATER, the water division of Veolia Environnement, is the world leader in water services. Veolia Water specializes in managing water services outsourced by municipal authorities, industry and tertiary sector companies. Veolia Water operates in 57 countries, serves 108 million people, employs 78,800 employees, and had revenue of $12.7 billion in 2006. Veolia Water North America is North America's leading water and wastewater services provider for local governments, federal governments, business and industry.

SOURCE: Veolia Water Solutions & Technologies

Veolia Water Solutions & Technologies

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