Asia-Pacific Case Study

Chevron has been an economic and community partner in Indonesia since 1924. We produce nearly half of the country’s crude oil, market lubricants throughout the region, and manage the Darajat and Salak geothermal projects on the island of Java. The Salak project, among the largest geothermal fields in the world, is situated in one of Indonesia’s largest national parks, Gunung Halimun Salak National Park.

In 2007, we continued our partnership with the Wildlife Trust, an international organization of scientists dedicated to the conservation of biodiversity, and its local partner, the Center for Conservation and Insect Studies, to promote biodiversity in the forest corridor of the park.

The forest corridor supports the livelihood of local villagers and serves as a crossing for wildlife and a water collection area. With Chevron funding, our partners and park authorities introduced educational and economic opportunities to help reduce illegal and damaging encroachments on the corridor’s natural resources. Farmers, villagers and other local stakeholder groups were consulted on these initiatives, which included:

• Conducting impact and ecological assessments to develop a corridor plan that accommodates the diverse needs of the community and ecosystem.
• Increasing youth education and providing training to public and private stakeholders on sustainable forest stewardship and conservation efforts.

The Bibiyana natural gas field, operated by Chevron Bangladesh Block Twelve Ltd., began production in March 2007. It is one of Bangladesh’s most important sources of energy and one of the largest gas fields in the country.

During the Bibiyana project’s development, more than 200 meetings were held with community members to understand their concerns and explain the project’s impacts and benefits. Residents were surveyed to understand their perceptions of the project, and relationships were built with local leaders, communities and nongovernmental organizations.

Considered a cultural and economic asset in Bangladesh, land was important to the project’s development. Chevron took steps to mitigate the impact of land acquisitions and leases by building the pipeline without displacing people from their homes. Also, five temporary offices were established along the pipeline route to help landowners register their deeds, secure payment from the authorities and answer questions about the project.

The Livelihood Program was established to assist landowners and economically vulnerable community members in the vicinity of the project. Administered by Friends in Village Development Bangladesh, a local NGO, the program provided training in capacity building, start-up funding, and ongoing support to 1,300 families for handicraft and agricultural microbusinesses. Other community contributions included mandatory safety training for 5,000 employees, the establishment of a clinic to provide health care to more than 6,500 villagers, and support of three local high schools.

Chevron helped communities recover from floods in September and Cyclone Sidr in November 2007 by providing over $250,000 to community members and NGOs assisting in recovery efforts.

Chevron Geothermal Philippines Holdings, Inc. operates the Tiwi and Makiling-Banahaw geothermal fields in Albay and Laguna/Batangas provinces. These operations contribute to Chevron’s current position as the largest private producer of geothermal energy in the world.

In November 2006, Typhoon Reming hit the Philippines with sustained wind speeds as high as 145 miles (230 km) an hour. In Tiwi, the most severely damaged facilities were the public schools, 90 percent of which were damaged or destroyed.

In the storm’s aftermath, Chevron provided immediate relief to local communities near company operations and began exploring long-term reconstruction strategies, working with the Tiwi local government, government agencies and nongovernmental organizations. Neighboring families received food, clothing and assistance for home repair. Over the long term, Chevron is partnering with Ayala Foundation USA, Aquinas University Foundation, Inc. and Meralco Industrial Engineering Services Corp. — all NGOs operating in the Philippines — to rebuild the town’s schools.

In June 2007, three new school buildings, constructed to withstand typhoon-force winds, were completed. About 700 students from local villages are expected to benefit from the new structures.

Chevron is Thailand’s leading crude oil and natural gas producer. Natural gas from Chevron assets generate approximately one-third of Thailand’s electricity. Our Caltex-branded operations rank among Thailand’s leading suppliers of petroleum products.

As part of a fundraising campaign launched by Chevron’s Upstream and Downstream operations to honor the 60th anniversary of King Bhumibol Adulyadej’s accession to the throne, Chevron provided scholarship funding for a second year to underprivileged students at Phra Dabos school. The school was established in 1976 by the king to help disadvantaged youth and adults contribute to their communities by providing one-year training in such areas as mechanics, electronics, carpentry, handicrafts and agriculture. In addition to Chevron’s donation of nearly $1.2 million to the campaign, an employee and public campaign raised approximately $500,000. The funds will provide 360 scholarships over six years to underprivileged youth attending the Phra Dabos school.

Chevron employees in Thailand raised funds to support BaanGerda, a small community north of Bangkok where HIV-positive children, mostly orphans, live and receive medical treatment in family homes under the care of foster parents. BaanGerda is a project of the Center for the Protection of Children’s Rights Foundation, a Bangkok-based nonprofit.