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 one of the largest producers 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.
Chevron sells lubricants in Indonesia through our subsidiary PT Chevron Oil Products Indonesia.
exploration and production
Chevron is one of Indonesia’s largest oil producers. Net production in 2016 averaged 173,000 barrels of liquids and 182 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 2016 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.
We continue to implement projects designed to sustain production, increase recovery and improve reliability from existing reservoirs. In 2016, we continued infill drilling and workover programs.
In the Minas Field, work continued to optimize the waterflood program. To further improve the recovery of light oil, we also continued infill drilling and workover activity in 2016.
Developing resources in Kutei Basin
In the Kutei Basin in East Kalimantan province, most of the production in 2016 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 the first quarter of 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.
Indonesia Deepwater Development
There are two natural gas deepwater development projects in the Kutei Basin known collectively as the Indonesia Deepwater Development.
Chevron has a 62 percent interest in the Bangka project. The project includes a subsea connection to a floating production unit (FPU) and has a design capacity of 110 million cubic feet of natural gas and 4,000 barrels of condensate per day. Production began in August 2016 and has reached design capacity.
The other project, Gendalo-Gehem, includes two separate hub developments, each with its own FPU, subsea drill center, natural gas and condensate pipelines, and onshore receiving facility. Plans call for the produced natural gas to be sold domestically and through liquefied natural gas (LNG) export. The project has a planned design capacity of 1.1 billion cubic feet of natural gas and 47,000 barrels of condensate per day. The company’s interest is approximately 63 percent. Chevron continues to work toward a final investment decision, subject both to the timing of government approvals, including extension of the associated PSCs, and to securing new LNG sales contracts.
South Natuna Sea
Eight fields in South Natuna Sea Block B produce natural gas and crude oil. Net daily production during 2016 averaged 6,000 barrels of liquids and 56 million cubic feet of natural gas. In December 2016, the company signed an agreement to sell its South Natuna Sea Block B assets in Indonesia. This transaction is expected to close in 2017.
lubricants and trading
PT Chevron Oil Products Indonesia sells Delo® and industrial 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
education and vocational training
Chevron supports the education of the Sakai people, an indigenous tribe in Riau province. We provide books, teacher incentives and educational grants through our Sakai Foster Children Scholarship program. Darmasiswa Chevron Riau is a scholarship program that helps talented students access higher education. Since 2001, the program has helped nearly 1,100 students.
In all of our operation areas, we offer vocational training to youth and women. Programs range from motorcycle mechanics to hairdressing to repair of electronic devices. The aim of these programs is to increase employability and promote entrepreneurship. Since 2013, we have trained more than 800 young people in skills needed in the energy industry.
Chevron built and sponsored 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. More than 3,300 students have graduated from these two schools.
We provide education support and research to several universities in Riau province under the University Relationship Program and to two other universities – Bandung Institute of Technology and the University of Gadjah Mada – under the University Partnership Program.
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 province. 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 provinces prepare women for childbirth and newborn complications through the Desa Siaga (Alert Village) initiative. And in 2015, we provided medical equipment and supplies to 15 health care centers and offered training in maternal and newborn health services. This program benefited more than 2,500 women and children every month and helps meet Indonesia’s Sustainable Development Goals.
small business and micro enterprise development
Our Local Business Development (LBD) program helps small companies and cooperatives in Riau, East Kalimantan and West Java provinces become more professional and competitive. Since 2001, we have created more than 52,000 jobs, awarded approximately 7,800 contracts to local companies, and procured more than $120 million in goods and services from LBD partners.
We introduced sustainable and integrated farming to more than 800 local farmers and provided them with training in agriculture, husbandry and market access and also provided microfinance assistance. We strengthen microfinance institutions by offering revolving funding, training and technical assistance in information technology systems and managerial skills. In 2015, six local microfinance institutions provided more than $500,000 in loans to more than 3,000 micro enterprises.
PRISMA (Promoting Sustainable Integrated Farming, Small Enterprise Cluster and Microfinance Access) – our most recent multiyear economic development 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. By the end of 2016, the PRISMA program had supported more than 1,500 beneficiaries in 36 business sectors, including agriculture, fishery and processed foods. We also helped establish four small and medium enterprise centers in Riau, West Java and East Kalimantan. They serve as trading houses and business consulting centers. Among the nearly 200 local products sold at these centers are locally made handicrafts, food, batik, and woven clothes. In addition, a group of women and people with disabilities in Balikpapan, East Kalimantan province, and Rumbai, Riau province, received training and support to produce environmentally friendly batik products.
disaster relief and rehabilitation
Following earthquakes in West Sumatra and West Java provinces 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 also 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, 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.
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 provinces.
In East Kalimantan province, 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 the multiyear Maratua Ecotourism for Sustainable Small Island program. The initiative focused on activities that promoted sustainable ecotourism, economic welfare, and community participation in conserving biological diversity and preparing for climate change.
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. In 2013, we started a tree nursery to ensure a supply of healthy seedlings. We also take part in tree planting initiatives. By 2015, approximately 6,500 trees, representing more than 130 species, had been planted in the forest. Since 2003, we have successfully re-established approximately 25 acres (100,000 sq m) of mangroves in the Penajam area, in southern 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 Mount Halimun Salak National Park and the Raptor Sanctuary partnership network to create the Suaka Elang (Raptor Sanctuary). This sanctuary rescues birds and educates the public about birds of prey and their habitats. In Riau province, we supported a migratory raptor inventory on Rupat Island. We also sponsored a study of the endangered Sumatran tiger population in the Duri area.
In 2011, we worked with Mount Halimun Salak National Park, the Kehati Foundation and local partners to establish the Green Corridor Initiative, which aimed to restore more than 600 acres (4,000 sq m) of corridor forest. In five years, approximately 125,000 trees have been planted. We helped communities start small businesses and practice organic farming, and as a result, more than 200 households have improved their income while protecting the corridor forest. In 2015, the Ministry of Environment and Forestry awarded one of the villages with the prestigious Climate Village Program award.
Through our Eye on the Forest project, we worked with Conservation International Indonesia to monitor threatened and endangered species, such as the Javan leopard, the Javan gibbon and the Javan hawk-eagle. This program was consistent with Chevron’s goal of conserving biodiversity in its operations, which includes avoiding and reducing potential harm to sensitive species, habitats and ecosystems.
In partnership with Conservation International and local organizations in West Java and Riau provinces, we established a three-year sustainable landscape management program in 2015. The program focuses on biodiversity monitoring, community engagement and reforestation efforts in the Papandayan-Kamojang-Guntur area of West Java. The program also studies the environment and endangered animal populations around the Duri Field in Riau. Initiatives include planting 50,000 trees, restoring habitats and empowering local communities to improve their livelihood while protecting the environment.
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. View the infographic to learn more.
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