Exploration and Production
Chevron is Indonesia's largest oil producer, with a total daily production averaging 460,000 barrels of liquids per day in 2008. Total average daily production of natural gas was 416 million cubic feet.
We operate in partnership with Indonesia's Executive Agency for Upstream Oil and Gas Business Activities through production-sharing contracts (PSCs).
PT Chevron Pacific Indonesia (CPI) has interests in and operates in two PSC areas in Sumatra. The company also holds nonoperated working interests in the offshore South Natuna Sea Block B and additional interests in five other offshore Indonesian PSC areas covering approximately 3.2 million acres (13,000 sq km). In November 2008, Chevron was awarded two exploration blocks in western Papau, West Papua I and West Papua III. Chevron holds a 100 percent interest in each.
CPI continually works to optimize production, increase recovery and improve reliability from its existing reservoirs. During 2008, the majority of CPI's production came from fields under primary or secondary recovery within the Rokan PSC. The largest producing field is Duri, which is also one of the world's largest steamflood developments. In 2008, 80 percent of the field was under steam injection, with total daily production averaging 196,000 barrels of crude oil.
North Duri Development Area 12 project, one of Chevron's major development projects, began producing oil in November 2008.
In the rest of the Rokan Block in the Sumatra light-oil area, CPI operates more than 85 active production fields. To sustain production in these fields, CPI continues to expand waterflood recovery programs in a number of fields, including in the giant Minas Field. CPI also began a new pilot project for a chemical injection process that could further improve recoverability in Minas and surrounding fields.
Chevron operates 12 offshore producing crude oil and natural gas fields in the Kutei Basin area. During 2008, total daily production from the Kutei Basin averaged 31,000 barrels of liquids and 271 million cubic feet of natural gas. Crude oil and natural gas production from the northern fields are processed at the company-operated Santan terminal and liquids extraction plant.
In October 2008, Chevron received approval for the development plan of the combined Gendalo-Gehem project.
Geothermal
Chevron generates more than 630 megawatts of clean, reliable and affordable geothermal energy for Indonesia. Geothermal energy is created by the heat of the earth. It generates reliable power and emits almost no greenhouse gases.
Our subsidiary Chevron Geothermal manages two geothermal projects in Indonesia – Darajat and Salak, both on the island of Java. The Darajat project supplies geothermal steam, which generates 259 megawatts of electricity. All power from the Darajat site is sold directly to the national grid. The addition of another 110-megawatt unit, Darajat IV, is being evaluated. Following more study of the reservoir, a final development decision is expected near the end of 2009. Chevron holds 95 percent interest in Darajat.
Chevron has 100 percent interest in the Salak project, which is among the largest in the world, with a total geothermal generation capacity of 377 megawatts.
The combined output from our Darajat and Salak geothermal operations now produces sufficient renewable energy to supply approximately 4 million homes in Indonesia.
Chevron also operates and has 95 percent interest in the North Duri Cogeneration Plant in Sumatra, supplying up to 300 megawatts of electrical power to CPI as well as steam in support of CPI's Duri steamflood project.
Marketing and Retail
PT Chevron Oil Products Indonesia (COPI) markets and sells lubricants to the consumer, commercial and industrial sectors throughout Indonesia.
Chevron also trades crude oil, liquid petroleum gas, asphalt and products with Pertamina and supplies additional products through local importers and distributors.
The government in Indonesia is gradually deregulating the country's downstream market. COPI recently set up a new group to explore additional opportunities to market diesel and transportation fuels in the country.
Updated: March 2009