Milestone agreement with Thai government is a boost for future energy
supplies to the country
SAN RAMON, Calif. and BANGKOK, Thailand, Oct. 29 /PRNewswire-FirstCall/
-- Chevron Corporation (NYSE: CVX) today announced that its subsidiary
Chevron Thailand Exploration and Production, Ltd, its co-concessionaires
and the Thai Ministry of Energy have signed an agreement to extend the
production period of four offshore blocks in the Gulf of Thailand for an
additional 10 years, from 2012 to 2022.
The extension of these leases in block numbers 10, 11, 12 and 13
facilitates Chevron's long-range plans to boost production from this area
to more than 1 billion cubic feet of natural gas per day. The offshore
blocks encompass Erawan, Satun, Funan, Banpot, Plamuk, Yala, Pla Daeng, and
Platong operating areas in the Gulf of Thailand. Chevron has working
interests in the operating areas within these blocks ranging from 60
percent to 80 percent.
Speaking at the signing ceremony in Bangkok today, Dave O'Reilly,
Chevron's chairman and CEO said, "We extend our gratitude to the Kingdom of
Thailand for its ongoing support and express our commitment to assisting
with the long-term expansion of Thailand's energy resources. We consider
the Gulf of Thailand to be an exploration and production focus area for the
company, and we look forward to working in partnership with the Kingdom to
continue to grow our activities here."
Khun Tara Tiradnakorn, president of Chevron Thailand Exploration and
Production, said: "The signing of this production period extension is the
first of its kind in the history of the Thai energy industry and is
testimony to our long-term commitment to Thailand. As the leading producer
with more than 45 years of oil and gas experience in the Gulf of Thailand,
Chevron is dedicated to working with the Kingdom to meet its growing energy
needs and to provide a reliable supply of energy for the future."
He added, "The development plan for this area calls for significant
investments to create opportunities for further offshore development, boost
recoverable reserves and production, and develop the energy resources of
the Thai people to assist with long-term economic growth and prosperity."
Chevron's co-concessionaires in the blocks include Mitsui Oil
Exploration Co., Ltd, and PTT Exploration and Production Public Company
Limited.
Chevron operates more than 180 platforms in the Gulf of Thailand with
2006 total average daily production of more than 144,000 barrels of oil and
condensate (73,000 net) and 1.6 billion gross cubic feet of gas (856
million net).
Chevron plans to invest $4 billion across its Asia-Pacific upstream and
downstream businesses in 2007, which is approximately 20 percent of the
company's worldwide capital budget. Historically, the company and its
joint-venture partners have invested more than $12 billion in Thailand's
oil and gas sector and paid the cumulative royalty of nearly $3.5 billion
(1981 - 2006).
Chevron Corporation is one of the world's leading integrated energy
companies. We have approximately 58,000 employees, and our subsidiaries
conduct business in more than 180 countries. We operate across the entire
energy spectrum -- producing and transporting crude oil and natural gas;
refining, marketing and distributing fuels and other energy products and
services; manufacturing and selling petrochemical products; generating
power; and developing and commercializing the energy resources of the
future, including biofuels and other renewables. Chevron is based in San
Ramon, Calif. More information about Chevron is available at
http://www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the
Purpose of "Safe Harbor" Provisions of the Private Securities Litigation
Reform Act of 1995.
Some of the items discussed in this press release are forward-looking
statements about Chevron's activities in Thailand. Words such as
"anticipates," "expects," "intends," "plans," "targets," "projects,"
"believes," "seeks," "estimates," "budgets" and similar expressions are
intended to identify such forward-looking statements. The statements are
based upon management's current expectations, estimates and projections;
are not guarantees of future performance; and are subject to certain risks,
uncertainties and other factors, some of which are beyond the company's
control and are difficult to predict. Among the factors that could cause
actual results to differ materially are changes in demand for and supply of
crude oil and natural gas; results of additional testing; selection and
successful execution of development plans; actions of competitors; the
potential disruption or interruption of project activities due to war,
accidents, political events, civil unrest, severe weather or crude-oil
production quotas that might be imposed by OPEC (Organization of Petroleum
Exporting Countries); government-mandated sales, divestitures,
recapitalizations, changes in fiscal terms or restrictions on scope of
company operations; and general economic and political conditions. You
should not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Unless legally required,
Chevron undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise.
SOURCE Chevron Corporation
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Related links:
http://www.chevron.com
CONTACT:
Nicole Hodgson, +66 2545 6061, or Pornsuree
Konanta, +66 2545 3426, both of Chevron Corporation
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