Exploration and Production
Chevron is Indonesia's largest oil producer, with total daily production averaging 477,000 barrels of liquids in 2010. Total average daily production of natural gas was 611 million cubic feet.
We operate in partnership with Indonesia's Executive Agency for Upstream Oil and Gas Business Activities (BPMIGAS) through production-sharing contracts (PSCs).
PT Chevron Pacific Indonesia (CPI) owns and operates the Rokan and Siak PSCs in Sumatra.
Chevron also has operated interests in five offshore Indonesian PSC areas covering approximately 2.8 million acres (11,100 sq km). There are four PSC areas offshore East Kalimantan in the Kutei Basin, including operated interests in East Kalimantan (92.5 percent), Makassar Strait (90 percent), Rapak (80 percent) and Ganal (80 percent). The fifth PSC is a 100 percent-owned interest in East Ambalat, in the Tarakan Basin, offshore northeast Kalimantan. In December 2010, the company relinquished its interest in East Ambalat, pending government approval, which is anticipated by the end of 2011.
With the approval of the Indonesian government, the working interest for each of Chevron's two onshore exploration blocks in western Papua—West Papua I and West Papua III—was reduced to 51 percent in June 2010.
Chevron has a 25 percent nonoperated working interest in the offshore South Natuna Sea Block B, northeast of the Rokan Block. The company relinquished its 40 percent interest in the NE Madura III Block in the East Java Sea Basin; government approval is expected in the second half of 2011.
Optimizing Potential in Sumatra
The majority of CPI's production in 2010 came from fields in the Rokan PSC. Duri, the largest field, has been using steamflooding technology since 1985 and is one of the world's largest steamflood developments. In 2010, steam injection was deployed in 80 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, 206 production wells and 16 steam-injection wells were drilled in 2010. In the Minas Field, 58 production wells were drilled during 2010.
A successful appraisal well was also drilled at the Bekasap Field in 2010. During 2011, additional appraisal drilling is planned in the Kulin and Bekasap fields.
Developing Resources in Kutei Basin
In the Kutei Basin in East Kalimantan, most of the production in 2010 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 the deepwater area, Chevron made progress on the Gendalo-Gehem natural gas project. The project will include two separate hub developments, each with its own floating production unit, subsea drill centers, gas and condensate pipelines, and an onshore receiving facility.
In December 2010, the company awarded major front-end engineering and design contracts for the floating production units, subsea and pipeline components, and an onshore receiving facility. Maximum daily production from the project is expected to be 1.1 billion cubic feet of natural gas and 31,000 barrels of condensate.
Also in the fourth quarter of 2010, Chevron approved front-end engineering and design for the deepwater Bangka Project.
Moving Ahead in South Natuna Sea Block B
Seven fields in South Natuna Sea Block B produce natural gas, and four fields produce crude oil.
A five-phase development project in Block B supports two long-term natural gas sales contracts with Malaysia and Singapore. Drilling for the first three phases continued through 2010. The fourth phase, in the North Belut Field, reached a maximum total daily production of 240 million cubic feet of natural gas and 33,000 barrels of liquids in February 2010. More development drilling in the North Belut Field is planned through 2011.
As part of the fifth phase, work continued on the Bawal and South Belut projects in 2010. A final investment decision was made in the Bawal Project in October 2010; operations are expected to begin in 2012.
Geothermal
Chevron is the world's largest producer of geothermal energy and has major operations in Indonesia.
Chevron generates more than 630 megawatts of clean 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. 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.
In December 2010, Chevron acquired a 95 percent-owned and operated interest in the Suoh-Sekincau prospect in South Sumatra. The Indonesian government issued Chevron a license to explore the area, and we have taken the first steps toward geological and geophysical assessment. If successful, additional development could potentially add about 200 megawatts to Chevron's geothermal portfolio.
Lubricants and Trading
PT Chevron Oil Products Indonesia sells Caltex™ lubricants 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 and finished petroleum products with Pertamina, Indonesia's government-owned oil and gas company. We also sell to licensed importers and distributors.
Chevron markets asphalt under the Caltex Asphalt® brand.
Updated: March 2011
Cautionary Statement