Source: The Jakarta Post

US-based Chevron, the leading crude oil producer in Indonesia, is set to spread its wings to the eastern part of the country after wrapping up a seismic survey of two exploration blocks in West Papua.

Chevron-Indonesia vice president for policy, government and public affairs, Yanto Sianipar said recently:

“We aim to review the results of the survey as soon as possible before we decide when we will start drilling.

We surely hope we can have a presence in West Papua.”

Chevron holds a 51 percent operating interest in both exploration blocks (located in Kaimana and Fakfak). The remaining interest is held by British corporate giant BP, which currently operates the massive Tangguh gas project in Teluk Bintuni, West Papua.

Chevron, through its subsidiary Chevron-Indonesia Ventures Ltd, won the rights to explore the two blocks in West Papua in 2008. For the first three years of exploration, Chevron-Indonesia invested US$24.5 million into each block. In 2012 they invested $2.7 billion into the project and almost $4 billion this year, according to data from the Energy and Mineral Resources Ministry. Indonesia has about 26 billion barrels of proven oil reserves as well as 44 billion barrels of potential oil reserves, most of which are located in Kalimantan, Java and West Papua.

In 2012, Chevron’s average daily oil production reached 342,000 barrels-per-day mainly from its massive but maturing Duri field in Riau, Sumatra.

The firm’s production alone accounted for 40 percent of Indonesia’s oil output last year of around 870,000 barrels-per-day.

Chevron currently owns and operates the Rokan and Siak block in Sumatra as well as offshore operations in East Kalimantan and the Makassar Strait.