Chevron 2010 Annual Report Download - page 22

20 Chevron Corporation 2010 Supplement to the Annual Report
Papa-Terra The Papa-Terra Project, in which Chevron has a 37.5
percent nonoperated working interest, has potentially recover-
able crude oil of approximately 380 million barrels and lies in
about 3,900 feet (1,189 m) of water. The single-phase development
project involves an FPSO and a tension leg well platform with a
planned total daily capacity of 140,000 barrels of crude oil. A final
investment decision was reached in January 2010. Major construc-
tion contracts were awarded in 2010, and development drilling
is expected to begin in the second-half 2011. First production is
expected in 2013. When completed, the project would be Chevron’s
largest investment in Brazil. At the end of 2010, proved reserves
had not been recognized for this project. The concession expires
in 2032.
Exploration Evaluation of the deepwater Atlanta and Oliva fields
continued in 2010. At the end of 2010, proved reserves had not
been recognized for either field.
Colombia
Chevron’s activities in Colombia are focused on the production
and commercialization of natural gas from properties in the
Caribbean Sea and adjacent coastal areas of the Guajira Peninsula.
The company operates the offshore Chuchupa and the onshore
Ballena and Riohacha natural gas fields as part of the Guajira
Association contract. Chevron receives 43 percent of the produc-
tion for the remaining life of each field and a variable production
volume from a fixed-fee, Build-Operate-Maintain-Transfer agree-
ment based on prior Chuchupa capital contributions. During 2010,
Chevron conducted a seismic survey of the offshore, near-shore
and onshore development areas, and the evaluation of the
results are ongoing.
Production Total daily production in 2010 averaged 714 million
cubic feet of natural gas (249 million net).
Trinidad and Tobago
The company has a 50 percent nonoperated working interest in
three blocks (Block E, Block 5(a) and Block 6) in the offshore East
Coast Marine Area of Trinidad, which includes the Dolphin and
Dolphin Deep producing natural gas fields. Chevron also operates
and holds a 50 percent interest in the Manatee Area of Block 6(d).
Production Total daily production during 2010 from the Dolphin
and Dolphin Deep fields averaged 560 million cubic feet of natural
gas (223 million net). These volumes were sold under four sales
contracts.
Exploration The company drilled a successful exploratory well in
the Manatee Area of Block 6(d) in 2005. This well extended the six
shallow gas sands discovered in Venezuela’s Loran Field in Block 2
into Trinidad and Tobago. In 2007, an overarching treaty support-
ing unitization was signed by the governments of Venezuela and
Trinidad and Tobago. In August 2010, a Loran/Manatee field-specific
treaty was signed by the two governments. At the end of 2010,
proved reserves had not been recognized for this field.
Venezuela
Chevron’s production activities in Venezuela are performed by two
affiliates in western Venezuela and one affiliate in the Orinoco Belt.
Additionally, a Chevron-led consortium was selected to participate
in another heavy oil project in the Orinoco Belt in 2010. Chevron
also has interests in three offshore exploratory blocks – two in
the Plataforma Deltana region and one off the northwest coast
of Venezuela.
Production During 2010, total daily production averaged
101,000 barrels of crude oil (26,000 net), 134,000 barrels of
synthetic oil (28,000 net) and 116 million cubic feet of natural
gas (25 million net).
Petroboscan The company holds a 39.2 percent interest in
Petroboscan, which operates the onshore Boscan Field in western
Venezuela under a 20-year contract expiring in 2026. During 2010,
Petroboscan total daily production averaged 96,000 barrels of
liquids (25,000 net) and 15 million cubic feet of natural gas
(6 million net). Fifteen development wells and two water injection
wells were drilled during 2010.
Petroindependiente The company holds a 25.2 percent interest
in Petroindependiente, which operates the LL-652 Field in Lake
Maracaibo under a 20-year contract expiring in 2026. During 2010,
Petroindependiente total daily production averaged 5,000 barrels
of liquids (1,000 net) and 52 million cubic feet of natural gas
(9 million net).
Petropiar Chevron holds a 30 percent interest in Petropiar, which
operates the Hamaca Project. The project is located in Venezuela’s
Orinoco Belt and has a total design capacity for processing and
upgrading 190,000 barrels per day of extra heavy crude oil (8.5
degrees API gravity) into 180,000 barrels of lighter, higher-value
synthetic oil (26 degrees API gravity). Total daily production aver-
aged 134,000 barrels of synthetic oil (28,000 net) and 49 million
cubic feet of natural gas (10 million net) during 2010. Enhanced oil
recovery studies continued through 2010.
Exploration Chevron operates and holds a 60 percent interest
in Block 2 and a 100 percent interest in Block 3 in the offshore
Plataforma Deltana region. In Block 2, which includes the Loran
Field, a Declaration of Commerciality was accepted by the
Venezuelan government in March 2010. Loran is scheduled to
provide the initial natural gas supply for the Delta Caribe liquefied
natural gas (LNG) plant, Venezuela’s first LNG project. Chevron has
a 10 percent nonoperated interest in the LNG facility. At the end of
2010, proved reserves had not been recognized for either of these
exploration prospects.
Chevron operates and holds a 100 percent interest in the
Cardon III Block, located north of Lake Maracaibo in the Gulf of
Venezuela offshore region. At the end of 2010, proved reserves
had not been recognized for this exploration prospect.
Upstream Other Americas