Exploration and Production
Thailand
Ten years after the discovery of the first commercial natural gas field in the Gulf of Thailand, the first natural gas production from Chevron's Erawan Field came onstream in 1981. Since then, natural gas has become the major source of energy for Thailand electricity generation, and it led to the development of the country's petrochemical industry.
In the Pattani Field, Chevron operates 11 blocks with ownership interests ranging from 35 to 80 percent. Total average daily production in 2008 from Pattani was 129,000 barrels of crude oil and condensate and 1.6 billion cubic feet of natural gas. The company's net oil-equivalent production in 2008 was 210,000 barrels per day.
We also have a 16 percent nonoperated working interest in five blocks known collectively as the Arthit Field, which began production in March 2008. From date of startup, total daily production from Arthit averaged 16,000 barrels of condensate and 317 billion cubic feet of natural gas. Chevron's post-startup net oil-equivalent production was 10,000 barrels per day in 2008.
Thirteen wellhead platforms were installed and 292 development wells were drilled in 2008.
All the natural gas Chevron produces for Thailand is sold to Petroleum Authority of Thailand (PTT), the national oil company of Thailand. The natural gas primarily is used to generate electricity, fulfilling about one-third of the country's total power demand. The remainder is used for industrial fuel, transportation fuel, cooking gas and petrochemical feedstock. The gas is transported via PTT's subsea pipelines to the gas separation plants in the Map Ta Phut Industrial Estate on the eastern seaboard.
Crude oil is sold to refineries in the country as well as exported to international markets.
A final investment decision was made in March 2008 for the 69.8 percent-owned and operated Platong Gas II project. The $3.1 billion development is designed with a total gas processing capacity of 420 million cubic feet per day. New facilities will include a central processing platform, pipelines and five initial wellhead platforms. First production is expected in 2011. An engineering, construction and installation contract was awarded in March 2008.
In 2008, 13 exploration wells were drilled in the Gulf of Thailand. All of them found hydrocarbons. The Block G4/50 Exploration Joint Operating Agreement was signed in late 2008. A 3-D seismic survey and geological studies were scheduled for 2009, and three exploratory wells are planned for 2010.
Chevron also holds a working interest in several blocks in the Thailand-Cambodia Overlapping Claim Area. As of early 2009, these areas were inactive pending resolution of border issues between the two countries.
Cambodia
Chevron Overseas Petroleum (Cambodia) Limited has a concession from the Royal Government of Cambodia for the exploration and production of oil and gas offshore in Block A, an area covering 1.2 million acres (4,709 sq km) in the Gulf of Thailand. Chevron is the operator of the block and holds a 55 percent interest.
In 2007, a four-well exploration and appraisal program was completed in Block A. Drilling results were assessed in 2008. In early 2009, commerciality of the prospects was being evaluated.
Marketing and Retail
Chevron's Caltex brand operates a network of more than 450 service stations in Thailand, about 180 of them equipped with Star Mart® stores.
Our operations also include two product pipelines that serve Bangkok and areas to the north and a partnership in a consortium that supplies aviation fuel pipeline and terminal services to the Bangkok International Airport.
Chevron holds a 64 percent interest in the 130,000-barrel-per-day refinery located at Map Ta Phut. The facility is one of our core refineries supplying the Pacific Basin with high-quality refined fuels.
In Ratchburi, Thailand, Chevron has a 50 percent interest in Tri Energy Company Ltd.'s power plant. The state-of-the-art, combined-cycle facility uses clean-burning natural gas to help meet the country's demand for electricity.
Updated: March 2009