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UPSTREAM
Asia-Pacific
The China Guangdong LNG Sales Purchase
Agreement, a 25-year sale and purchase agreement for
more than 3.9 trillion cubic feet of natural gas, became
fully unconditional in late 2004. The remaining shipping
charter agreements were also executed.
Barrow Island and Thevenard Island ChevronTexaco
operates the crude oil producing facilities on Barrow
and Thevenard islands, with a combined crude oil production
of 12,000 barrels per day (7,000 net barrels) in
2004. The company holds a 51.7 percent equity interest
in the operations for Barrow Island and 51.4 percent for
Thevenard Island.
Greater Gorgon Area Development ChevronTexaco
holds significant equity interests in the large natural
gas resource of the Greater Gorgon Area off the northwest
coast of Western Australia. The 12 discovered gas
fields straddle 17 lease blocks in the Greater Gorgon
Area. ChevronTexaco is the operator of the Gorgon
development, with a 57.1 percent interest and from
50 percent to 100 percent interest in other Greater
Gorgon fields. The Gorgon project is moving forward
on pre-FEED feasibility work, targeting initial production
in 2009-2010. Preliminary gas sales agreements
have been signed with the China National Offshore Oil
Corporation and with a planned North American West
Coast terminal. Proved reserves have not been recognized
and are contingent upon securing LNG sale and
purchase agreements and other key project milestones.
Exploration In 2004, ChevronTexaco drilled the successful
Wheatstone-1 rank exploration well in offshore
Western Australia. The well is located in permit area
WA-17-R, where the company holds a 100 percent
interest. The well tested at a rate of 54 million cubic
feet of gas per day. Production tests were completed in
2004, and in early 2005, the company began conducting
a 3-D seismic program to further evaluate the project’s
commerciality.
Elsewhere, the company conducted 3-D seismic
surveys over 691,895 acres (2,800 sq. km) in the Io and
Jansz fields, in which the company holds a 50 percent
equity share in each of the three permit areas, and over
212,510 acres (860 sq. km) in the exploration permit area
WA-268-P, in which the company holds a 100 percent
equity position.
BAHRAIN
In 2001, ChevronTexaco signed a three-year exploration
and production sharing agreement (EPSA) with
the Kingdom of Bahrain to explore for oil in offshore
Block 5. In 2004, the Tighaylib-2 exploration well was
drilled, which completed the contractual commitment
on the block. The first exploration phase of Block 5
expired, and the EPSA terminated February 2005.
CAMBODIA
ChevronTexaco operates and holds a 55 percent interest
in Block A, located offshore Cambodia in the Gulf
of Thailand, after a 15 percent farm-out during 2004.
The concession covers approximately 1.6 million acres
(6,475 sq. km). ChevronTexaco processed more than
600,000 acres (2,428 sq. km) of 3-D seismic data and
drilled four exploration wells in 2004 on the second
exploration campaign, resulting in four discoveries.
The company is evaluating appraisal and additional
exploration opportunities for 2005. Proved reserves
have not yet been recognized for this project, and timing
of reserves recognition has not been determined.
CHINA
ChevronTexaco has interests in three areas of China.
In the South China Sea, the company has production
and exploration activity in two offshore blocks, 16/08
and 16/19. In the North China Basin, the company has
exploration and production activities in Bohai Bay offshore
Block 11/19 and production in Block QHD 32-6.
Net production from the company’s interests in China
was 18,000 barrels of crude oil per day in 2004. In the
Ordos Basin, the company has 100 percent interest
in two prospective natural gas blocks totaling about
1.25 million acres (5,059 sq. km). The company has
64.3 percent interest in three additional prospective
natural gas blocks totaling about 1.43 million acres
(5,787 sq. km).
Production ChevronTexaco has a 32.7 percent working
interest in Blocks 16/08 and 16/19, located in the Pearl
River Delta Mouth Basin. Average total production
from the eight fields totaled 36,000 barrels of crude oil
per day (10,000 net barrels) in 2004. Initial production
was achieved from Huizhou (HZ) 19-3 Field in late 2004.
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