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UPSTREAM
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NETHERLANDS
ChevronTexaco is decommissioning the 30-year-old
onshore Akkrum natural gas field in the province
of Friesland in the northern Netherlands. All buildings,
equipment and gas transport pipelines were
removed, including all eight former production sites,
and the land is being reinstated for agricultural use.
Groundwater monitoring and sanitation works were
completed by year-end 2004, with cultivation planned
to be completed in the spring of 2005. The Friesland
provincial government is expected to issue Statements
of Satisfaction for the environmental restoration standards
at the final site in the first half 2005.
NORWAY
Production In 2004, average daily production from
Draugen Field totaled 144,000 barrels of crude oil
(11,000 net barrels). ChevronTexaco holds a 7.6 percent
equity interest in the field.
Exploration During 2004, ChevronTexaco, as operator,
drilled a well on PL 261BS, acquired through a farm-in
during 2003. The well was drilled to a depth of 12,287
feet (3,745 m) and plugged and abandoned without
discovering commercial hydrocarbons. A well in PL 283
is scheduled to be drilled in the second quarter 2005.
Two new licenses were acquired in the Norwegian
18th licensing round – PL 324 and PL 325. In PL 325,
ChevronTexaco is the operator and holds a 40 percent
working interest. ChevronTexaco holds a 30 percent
nonoperated interest in PL 324.
RUSSIA
In September 2004, the company and OAO Gazprom
signed a six-month memorandum of understanding
(MOU) to jointly undertake feasibility studies for the
possible implementation of crude oil and natural gas
projects in Russia and the United States. Specifically,
this includes assessing the feasibility of an integrated
LNG project in Russia, Gazprom’s potential participation
in a ChevronTexaco-led natural gas import
terminal project in North America, ChevronTexaco’s
potential participation in existing Gazprom projects in
northwest Siberia, and possible joint participation in
other crude oil and natural gas opportunities. At the
date of this publication (April 2005), the company was
working with Gazprom to extend the six-month term of
the initial MOU, while the feasibility studies continued
to advance.
TRINIDAD AND TOBAGO
The company has a 50 percent nonoperated interest
in four blocks in the offshore East Coast Marine Area
of Trinidad, which include the producing Dolphin
natural gas field and two discoveries, Dolphin Deep
and Starfish. The licensed areas are governed by
production-sharing contracts.
Production During 2004, total daily production from
Dolphin Field was 266 million cubic feet of natural gas
(135 million net cubic feet). The natural gas is supplied
to the local market through a take-or-pay gas sales
contract that terminates in 2015.
Development The Dolphin Deep and Starfish fields are
located in blocks adjacent to Dolphin Field. The fields
will be developed by a subsea tie-back to the Dolphin
platform. Development of the fields is expected to
provide 80 million cubic feet of natural gas per day
(39 million net cubic feet) in late 2005 for the Atlantic
LNG Train 3 and transport to the United States under
long-term contract. In early 2005, the project was in
the detailed design and construction phase. Drilling
is scheduled to commence in second quarter 2005
in Dolphin Deep Field. Initial recognition of proved
reserves associated with the gas sales agreement for
Train 3 was made in 2003. First production is anticipated
at the end of 2005, at which time proved undeveloped
reserves will be reclassified to proved developed.
Proved reserves associated with the Train 4 gas sales
agreement were recognized in 2004. Initial production
and the reclassification of proved undeveloped reserves
to proved developed is scheduled for the second half
2006. These gas sales agreements are for a production
period of 20 years.
Exploration In early 2005, the company announced
that one well in the Manatee area of Block 6d had been
drilled with successful results. This well appeared
to extend the six shallow gas sands discovered in
Venezuela’s Loran Field into Trinidad and Tobago.
UNITED KINGDOM
ChevronTexaco has interests in nine producing fields in
the United Kingdom, which had net daily production
in 2004 of 106,000 barrels of crude oil and 340 million
cubic feet of natural gas. Three U.K. producing assets
were sold in 2004. The sale of Galley and Statfjord
fields was completed in the first quarter and the sale
of the Orwell Field was completed in the second quarter.
The impact of these sales on 2004 U.K. net daily
production averaged 12,000 barrels of crude oil and 19
million cubic feet of natural gas.
Production
Alba ChevronTexaco is operator and holds a 21.2 percent
interest in Alba, which had total daily production
in 2004 of 67,000 barrels of crude oil (14,000 net barrels)
and 15 million cubic feet of natural gas (3 million net
cubic feet). Three new wells were drilled as part of the
Alba Extreme South Phase 2 project, which started
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