Chevron Granted 10-Year Production Period Extension for Concessions in the Gulf of Thailand
Milestone agreement with Thai government is a boost for future energy supplies to the country
SAN RAMON, Calif., and BANGKOK, Thailand, Oct. 29, 2007 - Chevron Corporation (NYSE: CVX) today announced that its subsidiary Chevron Thailand Exploration and Production, Ltd, its co-concessionaires and the Thai Ministry of Energy have signed an agreement to extend the production period of four offshore blocks in the Gulf of Thailand for an additional 10 years, from 2012 to 2022.
The extension of these leases in block numbers 10, 11, 12 and 13 facilitates Chevron's long-range plans to boost production from this area to more than 1 billion cubic feet of natural gas per day. The offshore blocks encompass Erawan, Satun, Funan, Banpot, Plamuk, Yala, Pla Daeng, and Platong operating areas in the Gulf of Thailand. Chevron has working interests in the operating areas within these blocks ranging from 60 percent to 80 percent.
Speaking at the signing ceremony in Bangkok today, Dave O'Reilly, Chevron's chairman and CEO said, "We extend our gratitude to the Kingdom of Thailand for its ongoing support and express our commitment to assisting with the long-term expansion of Thailand's energy resources. We consider the Gulf of Thailand to be an exploration and production focus area for the company, and we look forward to working in partnership with the Kingdom to continue to grow our activities here."
Khun Tara Tiradnakorn, president of Chevron Thailand Exploration and Production, said: "The signing of this production period extension is the first of its kind in the history of the Thai energy industry and is testimony to our long-term commitment to Thailand. As the leading producer with more than 45 years of oil and gas experience in the Gulf of Thailand, Chevron is dedicated to working with the Kingdom to meet its growing energy needs and to provide a reliable supply of energy for the future."
He added, "The development plan for this area calls for significant investments to create opportunities for further offshore development, boost recoverable reserves and production, and develop the energy resources of the Thai people to assist with long-term economic growth and prosperity."
Chevron's co-concessionaires in the blocks include Mitsui Oil Exploration Co., Ltd, and PTT Exploration and Production Public Company Limited.
Chevron operates more than 180 platforms in the Gulf of Thailand with 2006 total average daily production of more than 144,000 barrels of oil and condensate (73,000 net) and 1.6 billion gross cubic feet of gas (856 million net).
Chevron plans to invest $4 billion across its Asia-Pacific upstream and downstream businesses in 2007, which is approximately 20 percent of the company's worldwide capital budget. Historically, the company and its joint-venture partners have invested more than $12 billion in Thailand's oil and gas sector and paid the cumulative royalty of nearly $3.5 billion (1981 - 2006).
Chevron Corporation is one of the world's leading integrated energy companies. We have approximately 58,000 employees, and our subsidiaries conduct business in more than 180 countries. We operate across the entire energy spectrum - producing and transporting crude oil and natural gas; refining, marketing and distributing fuels and other energy products and services; manufacturing and selling petrochemical products; generating power; and developing and commercializing the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.
Some of the items discussed in this press release are forward-looking statements about Chevron's activities in Thailand. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in demand for and supply of crude oil and natural gas; results of additional testing; selection and successful execution of development plans; actions of competitors; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest, severe weather or crude-oil production quotas that might be imposed by OPEC (Organization of Petroleum Exporting Countries); government-mandated sales, divestitures, recapitalizations, changes in fiscal terms or restrictions on scope of company operations; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: October 2007