Chevron 2010 Annual Report Download - page 31

Chevron Corporation 2010 Supplement to the Annual Report 29
Production In 2010, total average daily production was 86,000
barrels of crude oil and condensate (18,000 net) and 46 million
cubic feet of natural gas (13 million net). Crude oil production from
Blocks 16/08 and 16/19 in the South China Sea and Block 11/19
in Bohai Bay was partially restored in the first-half 2010 using
temporary FPSOs after the fields were shut-in due to storm
damage in 2009. Production is expected to fully resume in third
quarter 2011 and in 2013, respectively.
HZ 25-3 and HZ 25-1 First production from the joint develop -
ment of the HZ 25-3 and HZ 25-1 crude oil fields in Block 16/19
was achieved in March 2010.
Development
Chuandongbei In 2010, the company continued construction of
the first natural gas purification plant and initiated development
of the Luojiazhai and Gunziping natural gas fields. Construction of
a second natural gas purification plant and gathering system in the
northern part of the concession is planned to commence in third
quarter 2011. Upon completion of the project, the full development
will include two new sour gas processing plants with an aggregate
design capacity of 740 million cubic feet per day, connected by a
gas gathering system to five natural gas fields. Planned maximum
total daily natural gas production is 558 million cubic feet. Total
project cost is estimated at $4.7 billion, and start-up of the initial
phase is expected in 2012. Proved reserves have been recognized
for the project.
Exploration In the Chuandongbei area, drilling is planned to begin
for an exploration well by third quarter 2011. In the deepwater
exploration blocks in the South China Sea, a 3-D seismic acquisi-
tion program started in fourth quarter 2010, and an environmental
impact study and an exploration well are planned for 2011.
Indonesia
Chevron’s operated interests in Indonesia include two onshore
PSCs on the island of Sumatra, four PSCs offshore East Kalimantan
and two PSCs onshore in West Papua. In addition, the company
operates two geothermal fields in West Java and a cogeneration
plant in Sumatra. Chevron holds a nonoperated working interest in
the offshore South Natuna Sea Block B, located northeast of the
island of Sumatra.
Total daily production in 2010 from all producing areas in Indonesia
averaged 477,000 barrels of liquids (187,000 net) and 611 million
cubic feet of natural gas (236 million net).
Sumatra Chevron’s interests in Sumatra include the 100 percent-
owned and operated Rokan and Siak PSCs. Chevron’s interest in
a third PSC, Mountain Front Kuantan, was transferred to a local
operator in April 2010.
Production Total daily production averaged 370,000 barrels of
crude oil (161,000 net) and 46 million cubic feet of natural gas
(46 million net) in 2010.
During 2010, the majority of Chevron’s Sumatran production came
from fields under primary or secondary recovery within the Rokan
PSC. Duri is the largest producing field in the Rokan PSC. Duri has
been under steamflood since 1985 and is one of the world’s largest
steamflood developments. In 2010, 80 percent of the field was
under steam injection, with total daily production averaging
188,000 barrels of crude oil (98,000 net).
The remaining production from the Rokan PSC is in the Sumatra
light oil area, consisting of more than 90 active fields with total
daily production that averaged 182,000 barrels of liquids (63,000
net) and 46 million cubic feet of natural gas (46 million net) in
2010. During 2010, 123 wells were drilled in this area. The Rokan
PSC expires in 2021.
Development The company continues to implement projects
designed to sustain production, increase recovery and improve
reliability from existing reservoirs.
In Area 1 through Area 11 of the Duri Field, 206 production and 16
steam injection wells were drilled during 2010. Development also
continued in the northern region of the field, where approximately
110 million barrels of crude oil are estimated to be potentially reco-
verable. The development plan includes sequential development
of additional northern expansion areas – North Duri Development
Area 12 and North Duri Development Area 13. The Area 12 expan-
sion, was completed in December 2010 with 72 production, 24
steam injection and 10 observation wells drilled during the year.
Ramp-up of steam injection continued, with the project reaching a
maximum total daily production rate of 45,000 barrels of crude oil
in September 2010. A final investment decision for
Area 13 was reached in May 2010 and is awaiting
final development plan and bid award approvals
from the government of Indonesia, which are
expected by year-end 2011.
In the Minas Field, 58 production wells were
drilled during 2010, and efforts continued to
optimize the waterflood program to sustain field
production. Execution of the pilot project for a
chemical injection process that could further
improve recoverability of light oil in Minas and
surrounding fields continued.
Asia Upstream
MALAYSIA
PHILIPPINES
MALAYSIA
Kalimantan
Sulawesi
Kutei Basin
Java
Sumatra
Siak
Block
South Natuna Sea
Block B
Jakarta
Rokan
Block
Nusa Tenggara
Timur (NTT)
Maluku
West Papua I & III
Blocks
West
Papua
PACIFIC
OCEAN
Darajat
Salak
Suoh-Sekincau
INDIAN
OCEAN
Chevron Interest Geothermal Field