highlights of operations
Chevron is a major partner in Indonesia’s economy and an active member of the community.
Through our wholly owned subsidiaries PT Chevron Pacific Indonesia (CPI) and Chevron Indonesia Company, we are the largest producer of Indonesia’s crude oil. We are developing oil and natural gas reserves from central Sumatra to offshore East Kalimantan. We continue to innovate with new technologies that are used to sustain and enhance production from existing reservoirs.
Our wholly owned subsidiaries Chevron Geothermal Indonesia, Ltd., and Chevron Geothermal Salak, Ltd., help make Chevron one of the world’s leading producers of geothermal energy.
Chevron sells lubricants in Indonesia through our subsidiary PT Chevron Oil Products Indonesia.
exploration and production
Chevron is Indonesia’s largest oil producer. Net production in 2015 averaged 176,000 barrels of liquids and 185 million cubic feet of natural gas per day.
We operate in partnership with Indonesia’s Special Task Force for Upstream Oil and Gas Business Activities through production-sharing contracts (PSCs).
CPI owns and operates the Rokan PSC in Sumatra. Chevron also has operated interests in four offshore Indonesian PSC areas in the Kutei Basin, including a 92.5 percent interest in East Kalimantan, a 72 percent interest in Makassar Strait, a 62 percent interest in Rapak and a 62 percent interest in Ganal.
Chevron has a 25 percent nonoperated working interest in the offshore South Natuna Sea Block B, northeast of the Rokan Block.
Optimizing potential in sumatra
The majority of CPI’s Sumatran production in 2015 came from fields in the Rokan PSC. Duri, the largest field, has been using steamflooding technology to improve production since 1985 and is one of the world’s largest steamflood developments. In 2015, steam injection was deployed in 77 percent of the field.
We continued to implement projects designed to sustain production, increase recovery and improve reliability from existing reservoirs. The Duri Field Area 13 steamflood expansion was completed in 2015, with all wells on production and injection by year-end.
In the Minas Field, work continued to optimize the waterflood program there. In 2015, a pilot project that uses a chemical injection process to further improve the recovery of light oil continued in the Minas and surrounding fields.
Developing resources in kutei basin
In the Kutei Basin in East Kalimantan, most of the production in 2014 came from 14 offshore fields in the shelf area within the East Kalimantan PSC, with the remainder from the deepwater West Seno Field in the Makassar Strait PSC. In 2016, Chevron advised the government that it would not propose to extend the East Kalimantan PSC and intends to return the assets to the government when the PSC expires in 2018.
Moving ahead in the south natuna sea
Eight fields in South Natuna Sea Block B produce natural gas and crude oil. Net daily production during 2015 averaged 5,000 barrels of liquids and 66 million cubic feet of natural gas.
Chevron is one of the world’s leading producers of geothermal energy and has major operations in Indonesia. Geothermal energy is created by the heat of the earth. It generates reliable power and emits almost no greenhouse gases.
Two Chevron subsidiaries operate geothermal projects on the island of Java. Chevron Geothermal Indonesia, Ltd., manages the Darajat project, and Chevron Geothermal Salak, Ltd., operates the Salak project. The Darajat project supplies geothermal steam to a plant that generates 270 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 the Salak project, one of the largest geothermal operations in the world. The field supplies steam to a six-unit power plant—three of which are company owned—with a total operating capacity of 377 megawatts.
Our Darajat and Salak geothermal operations combined now produce sufficient renewable energy to supply approximately 3 million homes in Indonesia.
In 2014, Chevron secured the preliminary survey assignment for a South Sekincau prospect. In June 2015, we submitted preliminary survey results to the government.
lubricants and trading
PT Chevron Oil Products Indonesia sells Caltex®-branded lubricants, coolants and greases 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, other feedstocks, and finished petroleum and asphalt products with Pertamina, Indonesia’s government-owned oil and gas company. We also sell to licensed importers.
in the community
In Indonesia, the expression gotong royong means offering assistance, sharing burdens and working with others. For more than 90 years in Indonesia, Chevron has embraced gotong royong by working with communities, governments, and local and international nongovernmental organizations.
education and vocational training
CPI supports the education of the Sakai people, an indigenous tribe in Riau. We provide books, teacher incentives and educational grants through our Beasiswa Anak Asuh Sakai (Sakai Foster Children Scholarship) program. Darmasiswa Chevron Riau is a scholarship program that helps talented students get access to higher education. Since 2001, the program has helped more than 1,000 students.
Chevron built and sponsors two polytechnic schools. Riau Caltex Polytechnic, the province’s first polytechnic university, built in 2001, offers a curriculum designed to contribute to the province’s economic growth. Politeknik Aceh, in Banda Aceh, was built with our partners in the long-term recovery effort following the 2004 tsunami. Nearly 3,000 students have graduated from these two schools.
Chevron supports a range of other educational programs:
- Since 2008, our educational SuperCamp program in West Java has helped nearly 1,300 students, about 93 percent of whom advanced to college.
- We offer vocational training programs—ranging from welding to motorcycle mechanics to hairdressing—for women and youth, both to increase their employability and to promote entrepreneurship. We also offer selected graduates internship opportunities and endowment funds to start their own business.
- As part of our global University Partnerships and Association Relations program, we provide education support and research assistance at the Bandung Institute of Technology and the University of Gadjah Mada.
- For the past three years, we have partnered with Gerakan Indonesia Mengajar (Indonesia Teaches Movement) to support the training and placement of young elementary school teachers in remote areas.
Chevron provided $5 million to the Global Fund to Fight AIDS, Tuberculosis and Malaria for HIV/AIDS programs in Indonesia. We also helped establish I Wanna Live, an HIV/AIDS awareness campaign for middle and high schools in West Java. It has reached more than 25,000 students.
Chevron worked with local governments and organizations to help midwives and volunteers in 10 villages in Riau and East Kalimantan prepare women for childbirth and newborn complications through the Desa Siaga (Alert Village) initiative. And recently, we offered capacity-building training to local health care teams in nine villages.
small business and micro enterprise development
Our Local Business Development program helps small companies and cooperatives in Riau, East Kalimantan and West Java become more professional and competitive. Since 2001, we have created more than 50,000 jobs and awarded nearly 7,500 contracts to local companies.
Chevron’s multiyear PRISMA (Promoting Sustainable Integrated Farming, Small Enterprise Cluster and Microfinance Access) program provides small grants, capacity building training, technical assistance and access to loans through microfinance institutions to local farmer groups, small businesses and cooperatives in 11 regencies and cities in Riau, East Kalimantan and West Java. In 2015, the PRISMA program supported more than 1,200 beneficiaries. The program covers 36 sectors, including agriculture, fishery and processed foods.
We introduced sustainable and integrated farming to more than 800 local farmers and provided them with agriculture, husbandry training, market access and microfinance assistance.
We helped establish centers for micro and small enterprises in Rumbai, Duri, Garut, Balikpapan and Penajam Paser Utara. They serve as trading houses and business consulting centers for more than 400 micro and small enterprises.
A group of women and people with disabilities in Balikpapan receives training, equipment, materials and marketing help to produce environment-friendly batik products. Similar assistance is being offered to a group of women in Rumbai and East Kalimantan.
We help strengthen microfinance institutions by offering revolving funding, training and technical assistance in information technology system and managerial skills. In 2015, six local microfinance institutions provided loans to more than 3,000 micro enterprises, with a total value surpassing $500,000.
disaster relief and rehabilitation
Following earthquakes in West Sumatra and West Java in 2009, we established the Chevron Earthquake Recovery Initiative, a $1.8 million school rehabilitation program that helped rebuild four severely damaged schools.
Following the 2004 tsunami, through the Chevron Aceh Recovery Initiative we contributed approximately $15 million for immediate relief and long-term rehabilitation. Chevron supported the Business Startup Establishment project, which successfully created 6,000 jobs.
record of achievement
Chevron’s relationship with Indonesia can be traced back more than 90 years.
In 1924, Standard Oil Co. of California (Socal), which later became Chevron, dispatched a geological expedition to the island of Sumatra.
In 1941, we drilled into the formation that would become the Duri Field. Steamflood technology was first applied to the field in 1985, and now Duri is one of the world’s largest enhanced-recovery steamflood projects. In 1944, a well near the village of Minas became the largest oil field ever discovered in Southeast Asia. Production began in 1952.
In the 1990s, we expanded operations to include geothermal power production. In 2007, Darajat III was recognized as the world’s largest project registered under the U.N. Clean Development Mechanism. In 2009, Darajat III received Certified Emission Reduction certificates from the United Nations.
Over the course of more than half a century, we have produced more than 12 billion barrels of oil from our onshore and offshore fields in Riau and East Kalimantan.
In recent years, Chevron has been honored with awards for the quality of our operations in Indonesia:
- Energy Conservation and Efficiency Award from the Ministry of Energy and Mineral Resources
- Occupational Health, Safety Management and Environmental Management awards from the Ministry of Energy and the Mineral Resources Directorate General of Mineral, Coal and Geothermal
- Environmental Management Gold and Green awards from the Ministry of Environment and Forestry
In East Kalimantan, Chevron helped establish the Berau Marine Protected Area. To help promote ecotourism, we worked with National Geographic Indonesia to produce a map of marine ecosystems in the Berau Islands. In late 2014, we launched a multiyear Maratua Ecotourism for Sustainable Small Island program.
We play an active role in rehabilitating the Telaga Sari City Forest in Balikpapan. We helped establish the Telaga Sari Educational Forest Center, which is now managed by 18 local schools. We also take part in tree planting initiatives. Some 5,000 local trees have been planted in the city forest. In 2013, we started a tree nursery to ensure a supply of healthy seedlings. Since 2003, we have successfully re-established approximately 20 acres (80,000 sq meters) of mangroves in the Penajam area, in south Balikpapan.
In partnership with National Geographic Indonesia, we produced a map of Mount Halimun Salak National Park to increase public awareness of the park’s importance. We also produced the “tourism triangle” map of Garut Regency.
We joined the park and the Raptor Sanctuary partnership network to create the Suaka Elang (Raptor Sanctuary). This sanctuary has bird rescue operations and educates the public about these birds of prey and their habitats. In Riau, we supported a migratory raptor inventory on Rupat Island. We also supported a study in the Duri area of the endangered Sumatran tiger population.
In 2011, we worked with Mount Halimun Salak National Park, the Kehati Foundation and local partners to establish the Green Corridor Initiative to help restore more than 1,250 acres (5 sq km) of critical ecological zones in the park. This initiative aims to plant at least 250,000 native trees over five years.
Through our Eye on the Forest project, we worked with Conservation International Indonesia to monitor threatened and endangered species, such as the Javan leopard.
In partnership with Conservation International and local organizations in West Java and Riau, we established a three-year sustainable environmental program in late 2015. The program focuses on biodiversity monitoring, community engagement and reforestation.
Chevron’s day-to-day operations and capital investments contribute to Indonesia’s economy. In 2014, we commissioned a study by the Institute for Economic and Social Research and the research firm IHS. Some of the highlights:
- Chevron operations supported 260,000 direct, indirect and induced jobs in 2013 alone.
- One Chevron job supported an average of 36 other jobs in Indonesia.
- Chevron’s operations in 2013 generated $736 million of personal income for working people in Indonesia, including contractor employees.
- Chevron’s Indonesian operations contributed $11.9 billion to the nation’s gross domestic product in 2013, accounting for 1.4 percent of Indonesia’s gross domestic product.
- From 2009 to 2013, Chevron generated an average of $9.5 billion per year in Indonesia’s government revenues, which, including direct suppliers and the extended supply chain, represented 7.7 percent of the state budget.
- About 97 percent of our employees and managers in the country are Indonesian.
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