Chevron 2007 Annual Report Supplement

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Upstream Asia-Pacific Indonesia �� Power Plant/Cogeneration Chevron develops and produces steam resources under an agreement with the National Power Corporation (NPC), a Philippine government-owned corporation. The combined generating capacity of the Tiwi and Mak-Ban geothermal plants is 637 megawatts. The company operates the steam fields under an agreement with NPC that is expected to be superseded by a new agreement that will become effective upon completion by NPC of the rehabilitation of the Mak-Ban geothermal plant and the formation of a Philippine company by Chevron. It is uncertain when NPC will complete the rehabilitation at the Mak-Ban geothermal plant. Once the new operating agreement takes effect, Chevron’s Philippine company would be granted the right to operate the steam fields under a contract with the Philippine Department of Energy for an additional 25 years. The Philippine company would sell geothermal resources under a sales contract until 2021, at a price designed to baseload operation of the Tiwi and Mak-Ban geothermal plants. 0 Chevron Corporation 2007 Supplement to the Annual Report �� Indonesia Chevron’s operated interests in Indonesia are managed by several wholly owned subsidiaries, including PT. Chevron Pacific Indonesia (CPI). CPI operates a 100 percent interest in the Rokan and Siak PSCs and a 90 percent interest in the Mountain Front Kuantan (MFK) PSC. A fourth PSC, Kisaran, was sold in 2007 after exploration results were deemed noncommercial. Chevron also holds a 25 percent nonoperated working interest in South Natuna Sea Block B and additional interests in six offshore PSC areas covering approximately 4 million acres (16,000 sq km). Four PSC areas are located offshore East Kalimantan in the Kutei Basin, including operated interests in East Kalimantan (92.5 percent), Makassar Strait (90 percent), Rapak (80 percent) and Ganal (80 percent). Chevron holds a 100 percent operated interest in East Ambalat, located in the Tarakan Basin offshore northeast Kalimantan, and a 40 percent nonoperated working interest in the NE Madura III Block, located in the East Java Sea Basin. In January 2008, Chevron relinquished its 35 percent nonoperated working interest in the Donggala PSC in the Kutei Basin. Total daily production in 2007 from all producing areas in Indonesia averaged 503,000 barrels of liquids and 606 million cubic feet of natural gas. The company’s net oil-equivalent production in 2007 was 241,000 barrels per day. �� CPI Production Total daily production averaged 425,000 barrels of crude oil (171,000 net) and 54 million cubic feet of natural gas (54 million net) in 2007. During 2007, the majority of CPI’s production came from fields under primary or secondary recovery within the Rokan PSC. The largest producing field is Duri, located in the Rokan PSC. Duri has been under steamflood since 1985 and is one of the world’s largest steamflood developments. In 2007, 80 percent of the field was under steam injection, with total daily production averaging 193,000 barrels of crude oil (107,000 net).
Remaining production from the Rokan Block in the Sumatra light-oil area, consisting of more than 85 active fields, averaged 232,000 barrels of liquids (64,000 net) and 54 million cubic feet of natural gas (54 million net) in 2007. During 2007, 130 wells were drilled in this area. The Rokan PSC expires in 2021. Development CPI continues to implement projects designed to optimize production, increase recovery and improve reliability from existing reservoirs. In addition to drilling 234 production and injection wells in the Duri Field, development also continued in 2007 in the North Duri region, where approximately 160 million barrels of crude oil are estimated to be potentially recoverable. The development plan calls for the sequential development of three possible expansion areas. The total project cost for all phases is estimated at $1.3 billion. The first expansion involves the development of Area 12 and was planned to come onstream in late 2008, with maximum total production estimated at 34,000 barrels of crude oil per day in 2012. Proved undeveloped reserves for North Duri were recognized in previous years, and reclassification from proved undeveloped to proved developed is scheduled to occur during various stages of sequential completion. CPI is expanding the waterflood recovery programs in the Rokan PSC, including the advancement of the waterflood optimization in the Minas Field, to sustain production of the Sumatra light-oil fields. CPI’s infill-well programs in both Sumatra-light and heavy-oil areas are also a major component of the development plan in Sumatra. Efforts are also ongoing to further evaluate the reservoirs in Rangau and South Aman Troughs in Central Sumatra Basin as well as to develop new opportunities in the more mature fields. Exploration Drilling programs in the Rokan and Siak PSCs continue to focus on lower-depth objectives. Exploration drilling started in the Rokan PSC in the Sihangat prospect in late 2007 and in the Pilar prospect in early 2008. Kutei Basin, East Kalimantan Production During 2007, total daily production from the Kutei Basin averaged 34,000 barrels of liquids (18,000 net) and 192 million cubic feet of natural gas (150 million net). Chevron operates 12 producing offshore crude-oil and natural-gas fields. Crude-oil and natural-gas production from the northern fields are processed at the company-operated Santan terminal and liquids extraction plant. Natural gas is transported by pipeline to the state-owned Bontang LNG plant and to a fertilizer, ammonia and methanol complex. Crude oil and natural gas from the southern fields are sent to the company-operated Lawe-Lawe terminal. The stored crude oil is either exported by tanker or transported by pipeline to the state-owned Balikpapan Refinery. The natural gas is transported by pipeline and sold for use as fuel gas at Balikpapan. Indonesia Upstream Development The company advanced the development plan during 2007 for its deepwater natural-gas projects. In early 2008, the development concept for the 50 percent-owned and operated Sadewa project remained under evaluation, with an investment decision expected in late 2008. In January 2007, Chevron decided to combine the development of Gendalo and Gehem into a single project because of the similarities of the development concepts. In August 2007, the company submitted the final development plan to the government of Indonesia. Approvals were expected by mid-2008. The Bangka project was also under evaluation in 2007 and will likely be developed in parallel with Gendalo-Gehem. The development timing is partially dependent on government approvals, market conditions and achievement of key project milestones. The company holds an 80 percent operated interest in these projects. Chevron also continued work during 2007 on several developments in the shelf area. First production from one of these developments, the Seturian Field, was anticipated in late 2008. The project is designed to supply natural gas to the Balikpapan Refinery. East Java Sea Basin Exploration Two wells were drilled in 2006 in the NE Madura III block but were dry holes. An additional three-well exploration program was contingent on the results of the third exploration well expected to be drilled in second-half 2008. South Natuna Sea Block B Production Block B production is from nine natural-gas fields and two fields that produce both crude oil and natural gas. Total daily production averaged 44,000 barrels of crude oil (6,000 net) and 360 million cubic feet of natural gas (72 million net). Development Block B has a five-phase development project to support two long-term gas sales contracts to Malaysia and Singapore. Drilling for the initial three development phases continued through 2007, with first oil from the Kerisi Field being produced in December 2007. First production of LPG from the Belanak Field occurred in April 2007. The North Belut development project is the fourth phase of the Block B development and is located approximately 40 miles (65 km) northeast of the Belanak FPSO vessel. The North Belut Field is the largest hydrocarbon-bearing structure in the West Natuna Basin, with sufficient natural-gas reserves to meet approximately 50 percent of the total gas volume required under the Malaysian gas sales contract. Additional development drilling in the North Belut Field was scheduled to begin in mid-2008, with first production expected in 2009. Chevron Corporation 2007 Supplement to the Annual Report
Page 1 and 2: Energy Performance 2007 Supplement
Page 3 and 4: 2007 at a Glance Accomplishments Co
Page 5 and 6: Consolidated Statement of Income Ye
Page 7 and 8: Consolidated Balance Sheet At Decem
Page 9 and 10: Capital and Exploratory Expenditure
Page 11 and 12: Miscellaneous Data 007 2006 2005 20
Page 13 and 14: Highlights Worldwide net oil-equiva
Page 15 and 16: • Kazakhstan - Ramp-up of expande
Page 17 and 18: Kettleman Hills Chevron increased i
Page 19 and 20: • Jack, a 2004 discovery at Walke
Page 21 and 22: Development Drilling activity withi
Page 23 and 24: Development South Offshore Water In
Page 25 and 26: Asia-Pacific Major producing countr
Page 27 and 28: Kazakhstan Chevron is the largest p
Page 29 and 30: Thailand In the Gulf of Thailand, C
Page 31: Exploration The Ordos Basin blocks
Page 35 and 36: Exploration During first-half 2007,
Page 37 and 38: Athabasca Oil Sands Project The com
Page 39 and 40: Production Total daily production i
Page 41 and 42: Major Development Projects 1 Maximu
Page 43 and 44: Net Oil-Equivalent Production 1 Yea
Page 45 and 46: Net Natural Gas Production 1 Year e
Page 47 and 48: Natural Gas Realizations 1 Year end
Page 49 and 50: Net Wells Completed * Year ended De
Page 51 and 52: Highlights Downstream is a key elem
Page 53 and 54: Marketing The Marketing organizatio
Page 55 and 56: Transportation The company’s tran
Page 57 and 58: Refining Capacity at Year-End 2007
Page 59 and 60: Refined-Product Sales Year ended De
Page 61 and 62: Chemicals ChEvRON CORPORATION Photo
Page 63 and 64: Manufacturing and Research and Deve
Page 65 and 66: Technology Chevron has three techno
Page 67 and 68: Mining Chevron’s U.S.-based minin
Page 69 and 70: Synthetic Crude Oil A marketable an
Page 71 and 72: Chevron History 1879 Incorporated i

Chevron 2007 Annual Report Supplement

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