Download PDF - Chevron
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UPSTREAM<br />
Other International<br />
Exploration<br />
In 2004, <strong>Chevron</strong>Texaco participated in three key<br />
wells in the Atlantic Margin. Rosebank/Lochnagar<br />
(<strong>Chevron</strong>Texaco-operated, 40 percent-owned) in the<br />
Faroe-Shetland Channel was a significant crude oil and<br />
natural gas discovery. The 213/27-1Z well, which was<br />
the discovery well at Rosebank/Lochnagar, encountered<br />
two crude oil and natural gas accumulations for a total<br />
net pay of 169 feet (52 m). Further appraisal drilling is<br />
planned for 2005. An appraisal well and a further sidetrack<br />
well at Laggan (<strong>Chevron</strong>Texaco-nonoperated, 10<br />
percent-owned) resulted in successful tests of this natural<br />
gas discovery, and appraisal studies are also under<br />
way. In addition, a second well at the Cambo prospect<br />
was drilled. Rationalization of the exploration portfolio<br />
continued in 2004, with the successful sale of some<br />
nonstrategic acreage and acquisition of 29 new blocks in<br />
the Atlantic Margin in the 22nd U.K. Licensing Round.<br />
Eighteen of these are operated with a range of equity<br />
interests from 40 percent to 75 percent.<br />
VENEZUELA<br />
Production<br />
Boscan Boscan Field is located in western Venezuela.<br />
<strong>Chevron</strong>Texaco operates the field under an Operating<br />
Service Agreement with Petróleos de Venezuela, S.A.<br />
(PDVSA). Total Boscan production averaged 113,000<br />
barrels of crude oil per day for the year. In 2004, the<br />
project continued to convert existing standard vertical<br />
displacement pumping units to rotary drive progressive<br />
cavity pumps that cost 80 percent less to install, are<br />
safer to operate, are more reliable and typically result in<br />
increased production. The horizontal well program also<br />
continued in 2004, resulting in five successful wells.<br />
A water-injection-pressure-maintenance program is<br />
being developed to arrest decline and provide pressure<br />
support in the more depleted areas. Automation of the<br />
field with SCADA (a computerized monitoring system)<br />
for remote monitoring of wells, reducing downtime and<br />
improving efficiency is also under way. Significant seismic<br />
survey work is planned through 2006.<br />
LL-652 Located in Lake Maracaibo, LL-652’s total production<br />
averaged 18,000 barrels of oil-equivalent per<br />
day (10,000 net barrels) during 2004. In order to arrest<br />
the continuing field decline, a stimulation program<br />
using acid and solvent treatments was initiated in 2004.<br />
Additional recompletions were performed to maximize<br />
gas production. The company operates the LL-652<br />
Field under a risked service agreement and maintains<br />
a 63 percent working interest. <strong>Chevron</strong>Texaco supplies<br />
PDVSA with natural gas from this field through an<br />
incremental natural gas sales contract.<br />
Hamaca Petrolera Ameriven, a joint-venture operating<br />
agent, serves as operator for the Hamaca project, which<br />
is located in Venezuela’s Orinoco Belt. The $3.6 billion<br />
Hamaca project includes vertically integrated heavy oil<br />
production, transportation and upgrading facilities.<br />
The crude oil upgrading facilities were completed in the<br />
third quarter 2004. Since upgrading started in October<br />
2004, the facility reached its design capacity of converting<br />
190,000 barrels per day of heavy crude oil (8.5° API)<br />
into 180,000 barrels of lighter, higher-value crude oil<br />
(26° API) in the first quarter 2005. During the project’s<br />
estimated 34-year production life, more than 2 billion barrels<br />
of crude oil are estimated to be potentially recoverable.<br />
In 2004, total production averaged 103,000 barrels<br />
of crude oil per day (24,000 net barrels). The company<br />
holds a 30 percent interest.<br />
Exploration<br />
<strong>Chevron</strong>Texaco has the license for Venezuela offshore<br />
Block 2, one of five offshore blocks in the northeastern<br />
Plataforma Deltana. Block 2 contains the significant<br />
undeveloped natural gas discovery known as Loran<br />
Field. The company is the operator and holds a 60 percent<br />
interest. An exploration and appraisal program for<br />
Plataforma Deltana began in August 2004. Three successful<br />
wells were drilled in Block 2 in 2004 and early<br />
2005. Evaluation work continues on Plataforma Deltana’s<br />
Loran Field; proved reserves have not been recognized<br />
for this project. In August 2004, <strong>Chevron</strong>Texaco was<br />
awarded the license for Plataforma Deltana Block 3. The<br />
company, as the operator of Block 3, plans to proceed<br />
with an exploration program in 2005. <strong>Chevron</strong>Texaco<br />
holds a 100 percent interest in Block 3.<br />
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