Chevron, SatCon Pioneer Use of Static Transfer Switch Technology to Increase Oil Field Production
Project Will Ensure Reliable Power, Prevent Dozens of Power Outages Each Year
THIRD PARTY NEWS RELEASE: Issued by SatCon Technology Corp.
BOSTON, Mass., Oct. 25, 2005 -- SatCon Technology Corp. (NASDAQ: SATC) today announced that it has sold to PT. Chevron Pacific Indonesia (CPI) -- a wholly-owned oil, natural gas and power production subsidiary of Chevron Corporation (NYSE: CVX) -- a medium-voltage static transfer switch (STS) and related equipment that will increase output from two oil fields in Indonesia by virtually eliminating power interruptions.
The power reliability project – the first known application of STS technology for oil production – was developed through Chevron Energy Solutions, Chevron's subsidiary providing energy efficiency and power reliability services.
Storms, lightning strikes and other factors frequently cause power outages that disrupt island-based oil field operations, resulting in many hours of lost production. In the event of an electrical disturbance at CPI's Kelok and Tilan oil fields on Sumatra, the STS will automatically switch the power to a secondary line in a fraction of a voltage cycle – less than one-sixtieth of a second – ensuring continuous power to the fields' pumping equipment.
"This is a great pilot project for CPI. We believe that it will deliver the results as planned, and we're looking forward to increasing our annual production through this technology," said Noor Bambang Siswoyo, CPI's General Manager Power Generation and Transmission. "With the STS, we expect to be able to prevent 20 to 30 power disturbances each year. That translates to 30,000 additional barrels of oil we can produce annually."
Over the past decade, the medium-voltage STS has enhanced reliability in semiconductor and semiconductor tools manufacturing facilities. If successful, this new application for improving oil production operations could open up a new market for the STS technology.
"There is growing demand for solutions to increase production in upstream oil operations," said Jim Davis, President of Chevron Energy Solutions. "This type of application may hold promise for remote oil fields that are interconnected to a power grid but are facing reliability issues. Over time, we hope to be able to offer similar solutions to other upstream operations. "
About PT. Chevron Pacific Indonesia
PT. Chevron Pacific Indonesia (CPI) is a production sharing contractor to BPMIGAS, Indonesia's Implementing Body for Upstream Crude and Natural Gas Business Activities. CPI employs approximately 100 people at its Jakarta headquarters and 5,000 people in its Central Sumatran operating area, where it explores for and produces oil and natural gas from nearly a hundred oil fields, including the renowned Minas and Duri fields. Companies under direct contract to CPI employ an additional 14,000 people. CPI today produces around 500,000 barrels of oil a day, about half of Indonesia's total oil output.
About Chevron Energy Solutions
Chevron Energy Solutions partners with businesses and institutions to improve facilities, increase efficiency, reduce energy consumption and costs, and ensure reliable, high quality power for critical operations. Its projects reduce air emissions, extend fuel supplies, and enhance indoor environments, and are funded by the energy savings they generate. For more information, please visit the company's web site at www.chevronenergy.com.
About SatCon Technology Corporation
SatCon Technology Corporation is a developer and manufacturer of electronics and motors for the Alternative Energy, Hybrid-Electric Vehicle, Grid Support, High Reliability Electronics and Advanced Power Technology markets. For further information, please visit the SatCon website at www.satcon.com.
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Updated: October 2005