Exploration and Production
Chevron is Indonesia's largest oil producer. Net production in 2012 averaged 158,000 barrels of liquids and 236 million cubic feet of natural gas per day.
We operate in partnership with Indonesia's Special Task Force for Upstream Oil and Gas Business Activities (SKKMIGAS) through production-sharing contracts (PSCs).
Our subsidiary PT Chevron Pacific Indonesia (CPI) owns and operates the Rokan and Siak PSCs in Sumatra. Chevron also has operated interests in four offshore Indonesian PSC areas covering approximately 2.8 million acres (11,100 sq km) in the Kutei Basin, including a 92.5 percent interest in East Kalimantan, 72 percent in Makassar Strait, 62 percent in Rapak and 62 percent in Ganal.
Chevron has a 51 percent operating interest in the two onshore exploration blocks in West Papua—West Papua I and West Papua III.
Chevron has a 25 percent nonoperated working interest in the offshore South Natuna Sea Block B, northeast of the Rokan Block.
Optimizing Potential in Sumatra
The majority of CPI's Sumatran production in 2012 came from fields in the Rokan PSC. Duri, the largest field, has been using steamflooding technology to improve production since 1985 and is one of the world's largest steamflood developments. In 2012, steam injection was deployed in 73 percent of the field.
We continued to implement projects designed to sustain production, increase recovery and improve reliability from existing reservoirs. In producing areas of the Duri Field, 186 production wells and 56 steam-injection and observation wells were drilled in 2012. Development also continued in the northern region of the field. First production from the North Duri Development Area 13 expansion project is expected in late 2013.
In the Minas Field, 57 production wells were drilled in 2012, and work continued to optimize the waterflood program there. In 2012, we made progress on a pilot project for a chemical injection process that could further improve recoverability of light oil in Minas and surrounding fields.
In 2012, four exploration wells were drilled. Two were successful, and the results for the other two were being studied as of early 2013. Appraisal and exploration drilling is planned for 2013.
Developing Resources in Kutei Basin
In the Kutei Basin in East Kalimantan, most of the production in 2012 came from 14 offshore fields in the shelf area. Crude oil and natural gas produced from the northern fields are processed at the Chevron-operated Santan terminal.
In deep water, Chevron is working on the Gendalo-Gehem natural gas project. The project includes two separate hub developments, each with its own floating production unit, subsea drill centers, gas and condensate pipelines, and onshore receiving facility. A final investment decision is expected in 2014. Maximum daily production from the project is expected to be 1.1 billion cubic feet of natural gas and 31,000 barrels of condensate.
In 2012, Chevron requested bids for all major contracts for the deepwater Bangka Project. A final investment decision is expected in 2013.
Moving Ahead in South Natuna Sea and West Papua
Five fields in South Natuna Sea Block B produce natural gas, and two fields produce crude oil.
In West Papua, the two onshore blocks cover approximately 2 million acres (8,000 sq km) and are not far from a third-party liquefied natural gas facility. In 2012, 2-D seismic data for West Papua I was gathered and studied. In 2013, plans call for 2-D seismic data work in West Papua III.
Geothermal
Chevron is one of the world's leading producers of geothermal energy and has major operations in 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 Indonesia, Ltd., 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. Chevron holds a 95 percent operating interest in Darajat.
Chevron owns and operates the Salak project. It is one of the largest geothermal operations in the world, with a total operating 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 a 95 percent interest in the North Duri Cogeneration Plant in Sumatra, which supplies up to 300 megawatts of electrical power to CPI as well as steam in support of CPI's Duri steamflood project.
Chevron has a 95 percent-owned and operated interest in the Suoh-Sekincau prospect in southern Sumatra. The Indonesian government issued Chevron a license to explore the area, and we have taken the first steps toward geological and geophysical assessment. Additional successful development could potentially add about 200 megawatts to Chevron's geothermal portfolio.
Lubricants and Trading
PT Chevron Oil Products Indonesia sells Caltex® branded lubricants, coolants and greases across Indonesia through a distribution network. These products serve commercial, industrial, consumer and marine customers.
Through our trading operation in Singapore, Chevron also trades in crude oil, other feedstocks and finished petroleum products with Pertamina, Indonesia's government-owned oil and gas company. We also sell to licensed importers and distributors.
Updated: April 2013
Cautionary Statement