Delivering Energy for the Future Geothermal and Power Operations
The world’s appetite for oil and other energy sources is growing The world’s appetite for oil and other energy sources is growing dramatically, with energy consumption internationally projected to rise by about 33 percent by 2030. The growing demand is fueled by a burgeoning population that will increase about 20 percent in the next 20 years, with most of that growth in countries with emerging economies, especially in the Asia Pacific region. At Chevron, we recognize the world needs all forms of energy - from conventional crude oil and natural gas to the emerging sources of the future. Chevron is actively investing in alternative and renewable energy technologies to help expand and diversify the world's energy supply.
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It is projected that the demand for energy will rise by about
33 % by 2030 a growing demand fuelled by a burgeoning population growing some
20 % over the next
20 years
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Human Energy is Rising to the Challenge Chevron is one of the world's leading integrated energy companies, with subsidiaries across the globe. Headquartered in San Ramon, California, we are engaged in every aspect of the crude oil and natural gas industry, including exploration and production, manufacturing, marketing and transportation, chemical manufacture and sales, geothermal extraction and power generation. We are also investing in other sources of renewable energy and researching advanced technologies.
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In carrying out our business, our personnel are guided by The Chevron Way, a vision is to be the global energy company most admired for its people, partnership and performance. Our Company’s foundation is built on its values, which distinguish us and guide our actions. We conduct our business in a socially responsible and ethical manner, with respect for the law, support for universal human rights, protection of the environment and benefit to communities where we work. Chevron is built on the idea that with commitment and ingenuity there is no problem that cannot be solved, no challenge that cannot be overcome. This is how the people of Chevron approach their jobs every day. The world needs energy to power businesses, heat homes, light schools, transport people, deliver products, create jobs and improve the overall quality of life. Energy moves the world forward. Human Energy makes all this possible.
In carrying out our business, our personnel are guided by The Chevron Way, a vision is to be the global energy company most admired for its people, partnership and performance. 5
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CHEVRON KALINGA, Ltd. Kalinga
PHILIPPINE GEOTHERMAL PRODUCTION COMPANY, INC. (MAK-BAN) Laguna-Batangas
Geothermal
Geothermal
MANILA
PHILIPPINE GEOTHERMAL PRODUCTION COMPANY, INC. (TIWI) Albay CHEVRON MALAMPAYA LLC
Geothermal
Gas Exploration and Production
SOUTH NATUNA SEA BLOCK B Riau Islands Oil & Gas Exploration and Production
THE PHILIPPINES
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CHEVRON INDONESIA COMPANY & CHEVRON MAKASSAR, Ltd. East Kalimantan Oil & Gas Exploration and Production
PT. CHEVRON PACIFIC INDONESIA Riau Oil & Gas Exploration and Production
INDONESIA PT. CHEVRON GEOTHERMAL SUOH - SEKINCAU Lampung Geothermal
JAKARTA
CHEVRON GEOTHERMAL INDONESIA, Ltd. West Java Geothermal
CHEVRON WEST PAPUA I, Ltd. & CHEVRON WEST PAPUA III, Ltd. West Papua Oil & Gas Exploration
CHEVRON GEOTHERMAL SALAK, Ltd. West Java Geothermal
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Chevron IndoAsia Business Unit Through Chevron Asia Pacific Exploration & Production, Chevron conducts operations in Indonesia and the Philippines under its IndoAsia Business Unit. In Indonesia, Chevron is a major producer of oil and gas through subsidiaries PT. Chevron Pacific Indonesia (CPI), Chevron Indonesia Company (CICo) and Chevron Makassar, Ltd. (CML). In the Philippines, Chevron participates in the country’s largest gasto-power development, working through Chevron Malampaya LLC. Chevron’s geothermal activities are carried out through Chevron Geothermal Indonesia, Ltd. (CGI), Chevron Geothermal Salak, Ltd. (CGS) in Indonesia, and Philippine Geothermal Production
Company, Inc. (PGPC) in the Philippines. We have added new projects to our portfolio: two oil & gas exploration blocks, West Papua I and West Papua III in West Papua Province, and two geothermal prospects, Kalinga in the Philippines and SuohSekincau in Lampung Province. Our operations in both countries are supported by over 6,400 highly-skilled, dedicated employees and more than 30,000 business partner-employees. Currently over 97 percent of IBU employees are Indonesian and Filipino nationals.
6,400 >30,000 97% highly-skilled, dedicated employees
business partneremployees
Indonesian and Filipino nationals
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Delivering Energy Now The world needs all forms of energy – from conventional crude oil and natural gas to the emerging sources of the future. Chevron is actively investing in alternative and renewable energy technologies to help expand and diversify the world’s energy supply. We began geothermal operations during the 1960s in the western United States by pioneering the development of The Geysers, which is the world’s largest geothermal field. Other geothermal projects in the US were also developed during the 1970s and 1980s. For more than 30 years, Chevron has been helping countries harness their geothermal resources to meet sustainable development objectives. Chevron has been a leader in geothermal development, developing one quarter of the world’s capacity. Today, we operate more geothermal energy capacity than any company, public or private. Chevron pioneered the development of geothermal energy in the Philippines and is the leading producer in Indonesia. Overall, our geothermal operations in both countries supply 924 megawatts of operating capacity, enough clean and sustainable energy to meet the needs of 12 million people.
Overall, our geothermal operations in both countries supply
924 megawatts
of operating capacity
enough clean and sustainable energy to meet the needs of
12 million
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people
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What is Geothermal Energy? How Geothermal is Produced The geologic conditions needed to generate electricity from geothermal energy exist in certain parts of the world, such as the Pacific Rim. In these areas deep fractures occur in the earth’s crust where molten material, or magma, pushes close enough to the surface to heat water that naturally seeps deep into the earth. Areas
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around inactive volcanoes are generally the most productive for geothermal energy. If conditions are favorable, an underground reservoir is created. This reservoir can be tapped into by drilling wells using methods similar to those used in crude oil and natural gas operations.
Geothermal System Cycle
Separator Scrubber Well Loation
Hot Springs
Geothermal energy is produced when water that has seeped deep below the earth’s surface is heated by molten magma. Geothermal fluids are trapped in the earth’s crust in permeable and fractured rock formations, typically at depths of up to 9,800 feet (3,000 meters). Once a subsurface reservoir has been discovered, wells are drilled to tap into it. The liquid or steam produced from the wells is then used to generate electricity.
Power Plan Altered Rocks
Magma 1100 C
Geothermal Reservoir
Injection Well
Detail Fractured Formation
Geothermal Power Plant Cycle As the geothermal fluid rises to surface, its pressure decreases and it expands. In some geothermal reservoirs, this fluid is all in gaseous form (steam). However, most geothermal systems produce a combination of water and steam. This steam drives the turbine, which in turn drive the generators to produce electricity. Remaining hot water (brine) is re-injected into the reservoir. The steam returns to a liquid state through condensers and the residual heat is released in large cooling towers, where approximately 70 percent of it evaporates. The remaining 30 percent is injected into condensate injection wells.
Separate steam and hot water and process to produce clean steam
Separator Scrubber
Well Site Mixture of hot water and steam flows up
Power Plan
Purified steam spins turbine blades generator generates electrical power
Steam Brine
Transmission
Wellbore
Electricity is sold to Consumers Drill well into productive geothermal zone
Injection Well Condensate
Injection Well Brine
Benefits of Geothermal Energy The advantages of geothermal energy are enormous. It is a reliable energy source and can reduce reliance on fossil fuels. Geothermal power plants emit almost no greenhouse gases. And geothermal energy is renewable, since it is derived from the natural heat within the Earth.
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Delivering Geothermal Energy for Indonesia's Growing Economy In Indonesia, Chevron’s two geothermal projects in West Java, Salak and Darajat, generate 647 MW of electricity. This represents over 50 percent of the country’s total geothermal production, which supports Indonesia’s growing economy, and power approximately 3.5 million homes. Chevron also operates a 300 megawatt gas-fired cogeneration facility in North Duri, Sumatra,
supplying steam and electricity to Chevron’s giant Duri Field. Our 110-megawatt Darajat Unit III geothermal power plant in West Java, reached an important milestone in 2009 by earning Chevron's first Clean Development Mechanism Certified Emission Reduction from the United Nations.
Chevron’s geothermal projects in Salak and Darajat in West Java generate
647MW of electricity This represents over
50%
of the country’s total geothermal production, power approximately
3.5 Million homes
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Geothermal Potential in Indonesia Indonesia has the largest geothermal potential of any country in the world. According to the government, Indonesia may have geothermal energy resources sufficient to produce up to 27,000 megawatts of electricity. Almost half (10,000 megawatts) of this potential is located in Java and Bali, the most populous island with the highest demand for electricity – and the most advanced power distribution infrastructure.
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The geothermal power plants currently in operation in Indonesia have a capacity of over 1,000 megawatts. The estimated potential of 27,000 is probably an upper limit, as many of these resources are located in remote areas or islands without substantial demand for electricity. Nevertheless, Indonesia is still a very attractive location for geothermal development and could one day become the world’s largest geothermal producing nation.
According to the government, Indonesia may have geothermal energy resources sufficient to produce up to
27,000 megawatts of electricity 15
Providing Renewable Energy for Philippines' Economic Progress We provide geothermal energy to plants that serve key population center in the Philippines. Our innovations have helped make the Philippines the second-largest geothermal energy-producing country in the world, after the United States. In the Philippines, Chevron successfully pioneered the development of the country’s geothermal industry in partnership with the Philippines government in 1971. We operate steam fields that provide geothermal energy to the Tiwi and Makiling-Banahaw (Mak-Ban) power plants located in the Albay and LagunaBatangas provinces. These plants supply power to Luzon, the country’s most populous island. The combined generating capacity of the two plants is 692 MW.
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Geothermal Potential in the Philippines With an estimated 1 out 5 light bulbs lit by electricity from geothermal energy, the country is the world’s largest users of this renewable resource on a per capita basis. Data from the Philippines Department of Energy shows that the Philippines’ total estimated potential of untapped geothermal resource is 4,531 megawatts. Based on the 2006 Philippines
Energy Plan, the country is targeting an additional capacity of 1,200 megawatts within a period of 10 years. Chevron recognizes the high priority placed by the Philippines government on the development of the energy sector to help promote energy security and address the country’s energy needs in an economic and environmentally-sustainable way.
Philippines’ total estimated potential of untapped geothermal resource is
4,531 megawatts Based on the 2006 Philippines Energy Plan, the country is targeting an additional capacity of
1,200 megawatts within a period of 10 years
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Creating a World-Class High-Performing Diverse Global Workforce One of our enterprise strategies is to invest in people. We believe that by investing in our employees we are strengthening our organizational capability, while at the same time we are developing a talented global workforce that can achieve results the right way. We have established a number of people development and training programs to ensure that our employees have all the resources to enrich their career objectives while continuously building our organizational capability. Our programs include: • Petrotech competency development, namely, the Horizons and Pathways programs • Career Development Assignments (CDA) • International Assignments • Employee Self Development Program (ESDP) • University Partnership Program (UPP)
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Horizons The Horizons Program is one of our main competency-based employee development efforts. The goal is to accelerate employee development with respect to their technical knowledge and work-based behavior. The Horizons Program has three key elements: training, assignments and mentoring. All new Chevron graduate hires with less than five years’ experience are enrolled into this program: Drilling & Completions, Earth Science, Facilities Engineering, Health, Environment and Safety, Information Technology, Petroleum Engineering and Supply Chain Management. This program has been run since 2007 and has graduated more than 180 national employees.
Career Development Assignments Career Development Assignment (CDA) is a development program intended to impart opportunities to develop and to retain the “best people” with proper knowledge and skills, in alignment with organizational business needs. By attending CDA, the employee is expected not only to obtain
knowledge, skills, and experience while enhancing professionalism and the transfer of technology, but also to be exposed to a global working environment in a multicultural atmosphere and to build a network with other high-calibre professionals. Since 2000, more than 200 national employees have joined this program, most of whom have proven themselves subsequently by playing important roles in achieving Chevron’s business objectives in Indonesia.
Employee Self Development Program (ESDP) Chevron provides educational support under its Employee Self Development Program (ESDP) for eligible employees to upgrade their qualifications by taking higher education at their own pace, in order to help enhance our organizational capability while meeting employee career growth aspirations.
International Assignments We continuously strive to ensure that employees are positioned to achieve their goals and to grow with their careers through Chevron-sponsored international development programs, many of which are held in the United States. Well over 1,000 Indonesian employees have completed international development assignments. At the same time, Chevron’s worldwide operations provide many opportunities for employees to gain experience outside their home countries. There are over 60 Indonesian employees on
Chevron has welcomed
167
the prestigious Chevron global workforce assignments in the Americas, in Europe and around Africa.
UPP intern students, of whom 52 have become permanent employees
University Partnership Program (UPP) – Internship Program To develop university students’ competency, Chevron has a University Partnership Program (UPP) – Internship Program to give students a 3-month apprenticeship in Chevron. Through this program, students have the opportunity to apply their knowledge, learn new skills, and build networking relationships. Chevron has welcomed 167 students into the program since it started in 2008, of whom 52 have become permanent Chevron employees.
Well over
1,000
Indonesian employees have completed international development assignments 21
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Developing Partnership, Empowering Communities Chevron does more than provide energy. We believe that by investing in people we all benefit. Our programs engage communities and individuals, empowering them to promote sustainability and helping deliver long-term socioeconomic benefit. These programs target the communities in which we operate and demonstrate our commitment to being the partner of choice. Chevron’s programs are anchored in partnership with governments, communities, local and international non-governmental organizations, and development agencies. Most programs invest in our three primary focus areas – improving access to basic human needs, enabling education and training opportunities, and promoting sustainable livelihoods. We are the first Corporate Champion of The Global Fund to Fight AIDS, Tuberculosis and Malaria. Our $30 million commitment funds programs to fight these diseases in six countries, including Indonesia, the Philippines, and Thailand, as well as Nigeria, South Africa and Angola. 23
In Indonesia, we have been supporting education for the communities since 1957 by building the first state high school in Pekanbaru, Riau. We also established the first polytechnic institution in Riau, the Politeknik Caltex Riau. And in response to earthquake and tsunami that hit northern part of Sumatra, as part of Chevron Aceh Recovery Initiative (CARI), we, in partnership with Government of Aceh, USAID, and The Aceh-Nias Reconstruction and Rehabilitation Agency, built another vocational school, the Politeknik Aceh. We also offer scholarships for students; provide capacity building trainings for teachers; build and improve school facilities such as libraries; and establish vocational schools for underprivileged students to complete high school education. Together with local partners, we support community basic health needs by establishing emergency care
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units as well as improving access to clean water and sanitation facilities in Garut and Sukabumi regencies. Through our sheep farming assistance program, we work with local university and local government to form a community-based small enterprise comprises of groups of sheep farmers. This program won a national recognition from Government of Indonesia’s Ministry of Social Welfare for our achievement in enhancing community’s economy. We also provide funding for small and medium entrepreneurs through micro finance. In line with our commitment to protect people and the environment, we partner with the Halimun-Salak National Park authority, Biodiversity Conservation International, Raptor Sanctuary and a local nongovernmental organization to initiate a conservation project to preserve ecological function of the Halimun-Salak National Park.
Meanwhile in the Philippines, we are actively involved in Cancer Prevention Program, a collaborative effort established by Chevron, the UP-Philippines General Hospital and Cancer Institute Foundation. This threeyear partnership provides for the establishment of a Cancer Detection Clinic that offers early cancer detection and screening, diagnosis treatment and referrals and counseling services to underprivileged Filipinos. Our Gearing up for Internet Literacy and Access Program, a project with Ayala Foundation, provides internet access to some 6,500 students and training for 26 teachers and 50 school heads. While through our My Library Project, a concerted effort of the Filipinas Heritage Library and Chevron, we enhance the resources and capacity of the public library in Tiwi and an elementary school library in Batangas.
Chevron also supports assistance program for small businesses and offer training in agriculture, fisheries and home industry in Tiwi and Mak-Ban by providing seed capital to help women’s groups, fishermen and villagers to develop small businesses using products that abound in their areas. We also joined local governments of Tiwi in a resource management program for twelve coastal villages to protect Tiwi coastlines by planting mangrove trees. It also promotes seaweed production as an alternative livelihood for coastal communities. We are a proud member of the Renewable Energy Coalition that supported the Renewable Energy Act approved by the Philippine Congress. The Act became law in December 2008, creating a level playing field for renewable energy sources such as geothermal, hydropower, wind, solar and biomass. The law also supports the Philippines’ goal of energy security and sustainable development.
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Striving to be the Partner of Choice Our dedication to collaboration and innovation supports our commitment to being the partner of choice. As a result, our companies are regularly honored for the quality of their operations in Indonesia. For the past several years, we have received recognition and awards from the
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Government of Indonesia, as well as national professional associations, in various areas, such as employee career development, HIV-AIDS prevention, health and occupational safety, environmental protection and being the nation’s best and mostadmired company.
Heading into the Future For 90 years, Chevron has been a proud member of Indonesian society. We have been supplying and will continue to deliver energy for the country’s growing economy, as well as continue supporting the livelihood of Indonesian people.
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Chevron Geothermal Indonesia, Ltd. Chevron Geothermal Salak, Ltd. Sentral Senayan I Office Tower Jl. Asia Afrika No. 8 Jakarta 10270, Indonesia Philippines Office 14/F 6750 Building, Ayala Avenue Makati City 1226, Philippines