Chevron 2007 Annual Report Supplement

Upstream Asia-Pacific
As of early 2008, essentially all TCO production was being
exported through the CPC pipeline, and CPC was seeking stockholder
approval for an expansion to accommodate increased
TCO volumes beginning in 2009. Expanded rail-car loading and
rail-export facilities, designed to transport most of the incremental
SGI/SGP production prior to CPC expansion, commenced operations
during 2007. As of early 2008, other export alternatives
were also being explored.
Russia
As of early 2008, Chevron and JSC Gazprom Neft continued to
negotiate the final agreements for exploration and development
activities in two licensed areas in the Yamal-Nenets region of
western Siberia. Upon finalization of the agreements, Chevron was
expected to hold a 49 percent interest in Northern Taiga Neftegaz
LLC, which will operate in the licensed areas. Exploration and
delineation activities were planned for 2008 on both licenses.
Turkey and Georgia
Chevron holds a 25 percent nonoperated working interest in the
550,000-acre (2,226-sq-km) Silopi Block in southeast Turkey on
trend with production in Iraq’s northern Zagros Fold Belt. The
first well drilled on this acreage was spud in 2006 and abandoned
as a dry hole in 2007. Additional seismic work and one well were
planned for the second-half 2008.
In 2007, Chevron withdrew from Blocks IIA, IIB and III in
offshore Georgia.
Bangladesh
Chevron holds interests in three operated PSCs in Bangladesh covering
onshore Block 12 (Bibiyana Field), onshore Blocks 13 and 14
(Jalalabad and Moulavi Bazar fields), and Block 7. The company has
a 98 percent interest in Blocks 12, 13 and 14 and a 43 percent interest
in Block 7. The rights to produce from Jalalabad expire in 2025,
from Moulavi Bazar in 2028 and from Bibiyana in 2034.
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Chevron Corporation 2007 Supplement to the Annual Report
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Production In 2007, total daily production averaged 496 million
cubic feet of natural gas and 3,000 barrels of condensate. The
company’s net oil-equivalent production in 2007 was 47,000
barrels per day.
Development Following a two-year development program, production
from the Bibiyana Field started in March 2007. The development
program included a gas processing plant with capacity of
600 million cubic feet per day and a natural-gas pipeline. After
the project start-up, five development wells were drilled and
completed and the gas plant commissioning was finalized. From
start-up through the end of 2007, total production averaged
237 million cubic feet of natural gas per day (169 million net).
Total maximum production of 500 million cubic feet per day is
expected to occur by late 2010. Initial proved reserves for Bibiyana
were recognized in 2005. In 2007, additional proved reserves were
recognized based on development wells drilled during the year,
and a portion of the proved undeveloped reserves were reclassified
to the proved developed category.
Exploration The evaluation of Block 7 exploration prospect was
expected to continue in 2008. Plans included additional seismic
work to fully evaluate the potential in the block.
Cambodia
Chevron holds a 55 percent operated interest in 1.2 million acres
(4,709-sq-km) in Block A, located in the Gulf of Thailand. In 2007,
Chevron relinquished its rights to 25 percent of the Block A area.
Exploration Building on the results of five wells drilled in 2006, a
four-well exploration and appraisal program was completed in
2007. As of early 2008, the results and prospects for further
drilling were being evaluated.
Myanmar
Chevron has a 28.3 percent nonoperated working interest in a PSC
for the production of natural gas from the Yadana and Sein fields
in the Andaman Sea. The company also has a 28.3 percent interest
in a pipeline company that transports the natural gas from Yadana
to the Myanmar-Thailand border for delivery to power plants in
Thailand.
Production Most of the natural gas from the Yadana Field is
purchased by Thailand’s PTT Public Company Limited (PTT) and
contributes to the fuel requirements of three major power plants in
Thailand. A small amount of production is dedicated to the Myanmar
market. Total natural gas production during 2007 averaged 761
million cubic feet per day (100 million net).
Development Connections for the Medium Compression Platform
project started in December 2007 and were scheduled to be completed
in third quarter 2008. The project consists of a compression
platform with two gas compression trains, which are expected to
maintain the contract-production levels and maximize ultimate
recovery from the fields.