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Providing Energy to Drive Human Progress Chevron IndoAsia Business Unit

Providing Energy to Drive Human Progress - Chevron, · PDF fileSOUTH NATUNA SEA BLOCK B ... Salak and Darajat in West Java generate 636 MW ... Technology plays a pivotal role in advancing

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Page 1: Providing Energy to Drive Human Progress - Chevron, · PDF fileSOUTH NATUNA SEA BLOCK B ... Salak and Darajat in West Java generate 636 MW ... Technology plays a pivotal role in advancing

Providing Energy to Drive Human Progress Chevron IndoAsia Business Unit

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The demand for energy is growing. The world is undergoing an economic expansion that is raising the standard of living for millions of people everywhere, but energy is the foundation for this expansion. It is projected that the demand for energy will rise by about 33 percent by 2030, a growing demand fuelled by a burgeoning population, growing some 20 percent over the next 20 years, with most of that growth in countries with emerging economies, especially in the Asia Pacific region.

On the cover: Ambang River Forest in Riau Chevron’s complex

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At Chevron, we recognize the world needs all the energy we can develop. We are developing energy resources that will help build a secure and diversified energy future. One of our renewable sources is geothermal energy. Today, we operate more geothermal energy facilities than any organization, public or private.

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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.

In carrying out our business, we are guided by The Chevron Way. Our 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.

Human Energy is Rising to the Challenge

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CHEVRON WEST PAPUA I, Ltd. & CHEVRON WEST PAPUA III, Ltd.

Oil & Gas Exploration

CHEVRON GEOTHERMAL PHILIPPINES HOLDING INC. (MAK-BAN)

Geothermal

CHEVRON KALINGA, Ltd.

Geothermal

Kalinga

Riau Islands

Riau

Lampung

West Java

West Java

West Papua

East Kalimantan

Albay

Laguna-Batangas

CHEVRON GEOTHERMAL PHILIPPINES HOLDING INC. (TIWI)

GeothermalCHEVRON MALAMPAYA LLC

Geothermal

THE PHILIPPINES

INDONESIA

MANILA

CHEVRON INDONESIA COMPANY &CHEVRON MAKASSAR, Ltd.

Oil & Gas Exploration and Production

CHEVRON GEOTHERMAL INDONESIA, Ltd.

-

PT. CHEVRON GEOTHERMAL SUOH - SEKINCAU

Geothermal

SOUTH NATUNA SEA BLOCK B

Oil & Gas Exploration and Production

JAKARTA

CHEVRON GEOTHERMAL SALAK, Ltd.

Geothermal

Geothermal

PT. CHEVRON PACIFIC INDONESIA

Oil & Gas Exploration and Production

6

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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. In the Philippines,

Chevron participates in the country’s largest gas-

to-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 Chevron Geothermal Philippines

Chevron IndoAsia Business UnitHolding Inc. (CGPHI) in the Philippines. We have

recently 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 Suoh-Sekincau in Lampung Province.

Our operations in both countries are supported

by over 7,000 highly-skilled, dedicated

employees and more than 32,000 business

partner-employees. Currently over 97 percent

of IBU employees are Indonesian and Filipino

nationals.

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Investing for the FutureChevron’s first major step in Indonesia energy exploration and production was taken in 1924, when

Standard Oil Company of California (Socal), today known as Chevron, dispatched a geological

expedition to the island of Sumatra.

For more than half a century, Chevron has been Indonesia’s largest producer of crude oil. From our

onshore oil fields in Riau, Sumatra and our offshore fields in East Kalimantan, we have produced

more than 12 billion barrels of oil to meet the energy needs of Indonesia’s growing economy.

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, our geothermal operations in Indonesia and

the Philippines make us the largest geothermal energy producer in the world.

In 2007, our Darajat III Geothermal Project in West Java, under contract to Pertamina and PLN

(Indonesia’s state-owned electricity company), was registered under the Clean Development

Mechanism (CDM) of the Kyoto Protocol. With its current capacity of 110 megawatts, Darajat III is the

largest geothermal energy project to be registered thus far under the CDM program. In addition,

in 2009 Darajat III received its first Certified Emission Reductions from the United Nations. This

milestone recognizes the commitment of both Chevron and the Republic of Indonesia to developing

renewable energy sources.

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Meeting Energy Needs to Fuel Indonesia’s Growing EconomyChevron has been producing crude oil and natural

gas for Indonesia for more than five decades, under a

production sharing contract with the Government of

Indonesia, represented today by BPMIGAS (Executive

Agency for Upstream Oil and Gas). From our fields

in Riau, Sumatra, we have produced more than 11

billion barrels of accumulated oil, while our offshore

operations in East Kalimantan have contributed

another billion barrels of oil.

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We pioneered the development of geothermal energy

in the Philippines and are the leading producer in

Indonesia. Overall, our geothermal operations in both

countries supply 1,273 megawatts of installed capacity,

enough clean and sustainable energy to meet the needs

of 16 million people.

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Optimizing Energy Potential in Sumatra

PT. Chevron Pacific Indonesia operates three

major fields: Duri, Minas and Bekasap, as well as

manages Dumai Wharf, the final terminal for oil

transport.

In Duri, we operate one of the world’s largest

steam-flood operations, the Duri Steam Flood

(DSF), which employs state of the art technology

to recover heavy crude oil from the relatively

shallow reservoirs. Duri Field produces a unique

type of crude oil, famed by its brand name: Duri

Crude. Today, the DSF project has successfully

developed 12 development areas, the last addition

being North Duri Development Area 12, which

produced its first oil on November 24, 2008. The

DSF development is now progressing toward

opening new development areas within Duri Field.

We also manage extensive water-flood operations

at the Minas Field, which is the largest oil field

ever discovered in South East Asia. It produces the

world-renowned type of oil called Sumatran Light

Crude (SLC).

Crude oil from Chevron’s Sumatra production

fields is transported to Dumai through a pipeline

system extending some 600 kilometers, and

reaches a tank farm with a storage capacity of 5.1

million barrels. From the tank farm, oil is pumped

to either or both Pertamina refinery or/and oil

tankers at Dumai Wharf. Using high-capacity

pumps, Dumai Wharf can load four tankers

simultaneously.

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Developing Resources in Kutei Basin

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Our operations in East Kalimantan

consist of three main areas: the North

Area, the South Area and West Seno,

a deepwater project in Makassar

Strait. In the North Area, we operate

the Attaka, Melahin, Kerindingan,

Serang and Sapi Fields, as well as

Santan Terminal. The Attaka Field has

earned the world’s recognition as the

largest offshore oil field in Indonesia.

Crude oil and natural gas produced

from the North Area are processed at

Santan Terminal. Natural gas is also

transported to Bontang LNG Plant. In

the South Area, we run the Sepinggan

and Yakin Fields, Lawe-lawe Terminal,

Penajam Supply Base and Pasir Ridge

Balikpapan Office. Crude oil and

natural gas from the South Area are

processed at Lawe-lawe Terminal.

The discovery of the West Seno

Field marked a new phase in energy

development projects in Indonesia:

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deepwater oil and gas development.

The West Seno Field lies in Makassar

Strait PSC, with a depth varying

between 800 meters (2,400 feet) and

1,100 meters (3,400 feet). Chevron

is now developing the first ultra-

deepwater natural gas development in

Indonesia, to be known as the Indonesia

Deepwater Development (IDD) project,

which covers several fields. The first

five fields to be developed are the

Gendalo, Maha, Gandang (known as

the Gendalo project), Gehem and

Bangka. These fields are located in four

different PSC areas, namely, Makassar

Strait, Ganal, Rapak, and Muara Bakau

in Makassar Strait at depths varying

from 900 meters (2,700 feet) to 2,000

meters (6,600 feet). Part of the gas

from the IDD project will be marketed

domestically, while another portion is

to be converted to liquefied natural gas

(LNG) at the Bontang LNG facility in

Indonesia for export sale.

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Providing Clean and Affordable Renewable Energy

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In Indonesia, Chevron’s geothermal projects in

Salak and Darajat in West Java generate 636 MW

of electricity. This represents over 50 percent

of the country’s total geothermal production,

in support of Indonesia’s growing economy, and

powers approximately 3.9 million homes. Our

Salak Field is among the largest in the world,

with a total capacity of 377 MW. Meanwhile, our

Darajat Field generates 259 MW of electricity.

We also operate a 300 megawatt gas–fired

cogeneration facility in North Duri, Riau, supplying

steam and electricity to Chevron’s giant Duri Field.

With an estimated 1 out of 5 light bulbs lit

by electricity from geothermal energy, the

Philippines is the world’s largest user of this

renewable resource on a per capita basis. Chevron

operates steam fields that provide geothermal

energy to the Tiwi and Makiling-Banahaw (Mak-

Ban) power plants, located in Albay and Laguna-

Batangas provinces. These facilities generate

more than 630 megawatts of electricity to help

meet the energy demands of Luzon Island, the

country’s most populous island and home to

approximately 50 million people.

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Advanced Technology to Deliver World-Class Performance

Protecting people and the environment while

conducting our operations reliability and

efficiently are integral parts of the Chevron Way.

We place the highest priority on the health and

safety of our workforce, along with protection of

the environment and our assets.

We steadily endeavor to maintain our reputation

for world-class performance, through disciplined

application of the Operational Excellence

Management System (OEMS). Our actions are

guided by the following two tenets: “Do it safely

or not at all” and “There is always time to do it

right”.

Technology plays a pivotal role in advancing all

aspects of our business. It enables us to find

new resources, overcome geological challenges

while achieve the best and most cost-effective

results. Steam-flooding and water injection are

just a couple examples of advanced technologies

developed worldwide and transferred to Indonesia

by Chevron.

In our mature fields in Duri, we use specialized

heat management techniques, such as

steam-flooding and other enhanced recovery

technologies, to coax heavy oil from the ground.

The steam-flooding technology has significantly

prolonged the life of our Duri Field, which

accounts for almost half of Chevron’s production

in Sumatra.

We began applying water injection technology

in Minas in the 1970s. Since then, the secret to

the success of Minas has been “pattern water-

flooding”, or the injection of water into the

reservoir to help push available oil to the surface.

Chevron and BPMIGAS have studied a variety of

enhanced oil recovery technologies, and have

agreed in concept to conduct a limited-scale

field trial to test the technical performance

of surfactant/polymer enhanced oil recovery

technology in Minas Field.

Chevron is a world leader in deepwater

developments. We have safely, cost effectively and

in a timely manner delivered numerous deepwater

projects around the world, including ones in the

Gulf of Mexico, offshore Nigeria, offshore Angola,

and offshore Brazil. The lessons learned and

expertise gained from these developments will

be incorporated into our first ultra deepwater

projects in Indonesia.

As part of our Environmental Stewardship, we

practice zero water discharge, or Zewadi, in our

Minas and Duri operations in Sumatra. The term

Zewadi means we do not discharge produced

water into the environment, but we rather re-

inject it back into the earth, as part of the effort

to extract more oil. Through the implementation

of Zewadi, we fully comply with the government’s

waste water regulations. In other areas, such as

Kotabatak-Petapahan, Bekasap-Rokan and Libo,

we also re-inject a large amount of produced

water, while in Duri, Petani and Bekasap, we re-

inject produced water in the form of steam.

In our offshore operations in East Kalimantan, we

implement a flaring/venting reduction program at

the Yakin and Sepinggan Fields. This program has

successfully reduced greenhouse gas emissions

by operating vapor recovery and gas compressors,

so that recovered associated gas can be utilized

as a source of fuel at these offshore field or being

packaged for sale.

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Creating a World-Class High-Performing Diverse Global WorkforceOne 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)

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,

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Petroleum Engineering and Supply

Chain Management. This program

has been run since 2006 and has

graduated more than 350 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 multi-

cultural atmosphere and to build

a network with other high-calibre

professionals.

Since 2000, more than 200

national employees have joined

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.

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 57 students into the

program since it started in 2008,

of whom eight have become

permanent Chevron employees.

this program, most of whom have

proven themselves subsequently

by playing important roles in

achieving Chevron’s business

objectives in Indonesia.

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 U.S.-

based development assignments.

At the same time, Chevron’s

worldwide operations provide

many opportunities for employees

to gain experience outside

their home countries. There are

currently over 60 Indonesian

employees on the prestigious

Chevron global workforce

assignments in the Americas, in

Europe and around Africa.

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Developing Partnerships, Empowering Communities

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 (such as healthcare, better nutrition, improved sanitation, agricultural,

and public infrastructure development), enabling education and training opportunities and promoting sustainable

livelihoods. We also support arts and culture, environment protection and rehabilitation as well as disaster relief

and long-term rehabilitation efforts. Each of these elements helps contribute to socioeconomic progress. Since we

began operating in Indonesia, we have invested over $135 million in various community programs.

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 help deliver long-term socioeconomic benefits. These programs target the communities in which we operate and demonstrate our commitment to being the partner of choice.

Health care, nutrition, clean water, sanitation,

agriculture and public infrastructure provide a

foundation for economic development activities.

We have been supporting Riau communities since

the 1950s by opening an isolated area of Eastern

Riau through the construction of a 180-kilometer

roadway, connecting Pekanbaru and Dumai. We also

connected that road to the North Sumatra province

road through Bangko region. Another milestone of

our contributions is the construction of the Siak

Bridge, the first bridge over Siak River that connects

Pekanbaru southern area with the northern area in

1977, as well as connects western part of Sumatra

(West Sumatra Province) to the eastern part (Dumai in

Riau Province).

We run a number of programs to promote access to

basic human needs, including our partnership with the

Global Fund to fight AIDS, Tuberculosis and Malaria.

Our $30 million commitment has funded programs

to fight these diseases in six countries, including

Indonesia and the Philippines, as well as Thailand,

Nigeria, South Africa and Angola. In 2010,

we announced that we will commit another $25

million, raising its six-year investment in the

organization to $55 million.

In Indonesia, Chevron is working to combat HIV/AIDS

as part of a comprehensive program that includes

education and information initiatives, and specially-

designed local programs. We support comprehensive

awareness, prevention, voluntary testing and

counseling services, treatment and anti-discrimination

approach for all our employees and their family

members. We also actively collaborate with local and

national governments as well as non-governmental

organizations to organize and participate in HIV/AIDS

Improving Access to Basic Human Needs

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prevention and awareness campaigns for surrounding

communities, throughout our operations in Riau, East

Kalimantan, West Java and Jakarta.

In 2007, we became founding members of the

Indonesian Business Coalition on AIDS (IBCA). We

believe that the business community plays a vital

role, working together to adopt best practices to

prevent the spread of HIV/AIDS, starting in our own

workplaces.

Initiative Engage Execute Empower

We sponsor a series of programs called Initiative

Engage Execute Empower (I3E), where we offer our

assistance for women’s and youth issues in health,

education, and economic development. In Minas

District, we work together with our partners to

sustainably improve the health of pregnant women,

postpartum women and their infants, by enhancing

community capacity, access to and demand for quality

maternal and newly-born health services. We also

help them prepare for childbirth and obstetrics and

newly-born complications, using the already tested

community engagement approach known as Desa

SIAGA. Desa SIAGA, meaning “Alert Village”, stands for

SIap (ready), Antar (take, transport), jaGA (stand by or

guard). The SIAGA, or “alert”, initiative advocates that

everyone should play a part in helping to save mothers'

lives. In addition, we also carry out supplementary

feeding activities for around 400 infants in Minas,

distributing healthy green bean porridge, ready-to-

drink infant formula, baby biscuits and milk.

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Our investments in education and training contribute to

local development and build constructive relationships

that improve our ability to conduct business. Education

has been a focus for Chevron in Indonesia, dating back

to 1957 when we established the first state senior high

school, SMAN 1, in Pekanbaru, Riau.

Chevron’s School Infrastructure Construction and

Renovation Program helps improve school facilities

in remote areas located near our operational areas in

Riau, East Kalimantan and West Java. We have helped

establishing schools in many isolated areas, including

Sungai Rangau, Pauh-Libo, Pematang Pudu, Jiat,

Rangau, Petani and Pematang Pudu and Minas Barat

in Riau, as well as renovating numerous classrooms

in Marangkayu District, East Kalimantan, Samarang

and Pasirwangi in Garut, and Kabandungan and

Kalapanunggal in Sukabumi, West Java.

Politeknik Caltex Riau (PCR)

In 2001, we established the first polytechnic institution

in Riau, the Politeknik Caltex Riau, in collaboration

with the Riau provincial government. The polytechnic

now has some 1,000 students enrolled, and offers

eight diploma programs – computer engineering,

electronic engineering, telecommunications engineering,

mechatronics, accounting, multimedia IT engineering,

industrial information systems and advanced

telecommunications engineering. Since the program's

founding, more than 880 students have completed

their studies at PCR, and around 85 percent have found

employment within three months of graduation.

Darmasiswa Chevron Riau Scholarships

Chevron established the Darmasiswa Chevron Riau

scholarship program in 2001 to aid talented high school

students to continue their college education. To date,

more than 600 outstanding students have benefited

from this program. Working together with provincial and

district/municipal education agencies, Chevron conducts

a defined selection process each year to identify

students with the greatest potential. Students who are

selected are given the opportunity to attend some of

the most prestigious colleges in Indonesia, such as the

Enabling Education and Training

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University of Indonesia, Bandung Institute of Technology,

Gadjah Mada University and Padjajaran University.

Vocational Training for Youth and School Dropouts

Throughout our Sumatra operations in Riau, East

Kalimantan and West Java, in collaboration with local

governments, non-governmental organizations, youth

organizations, universities and vocational schools, we

have established Chevron’s Vocational Training for Youth

and Dropout Students Program. The initiative is intended

to diversify the economy of the local communities and

to increase employment opportunities by upgrading the

skills of young people. The training courses vary from

year to year but generally include welding, automotive

repair, heavy-equipment operation, carpentry, rigging,

electrician, motorcycle technician, audio technician and

air-conditioner technician. In addition, we also offer

accelerated learning for achieving a high school diploma

(Kejar Paket C) for school dropouts who wish to obtain

their diploma certificate, in Pamijahan, Bogor Regency

and Pasirwangi in Garut.

Newspapers in Education: Training Teachers and

Students

Chevron is partnering with several organizations,

including The Jakarta Post and the Newspaper in

Education Institute, in a unique program to teach

English. The program is based on the idea that using

the newspaper as a living textbook can make teaching

and learning English enjoyable, interactive and relevant.

Chevron supports the program by organizing training

in communities near our operations. More than 7,000

students and 1,000 teachers from nine provinces across

Indonesia have benefited from the training since our

participation began in 2008.

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Chevron is committed to improving social and economic conditions wherever we operate, and our focus on

sustainable livelihoods and sustainable employment opportunities promotes self-sufficiency. With our partners, we

identify programs to promote a better standard of living, create a more stable operating environment and strengthen

relationships.

Establishing Sustainable Livelihoods through Micro and Small Enterprises

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Supporting Local Business

Chevron supports programs that offer training in

agriculture, fisheries and small business development.

The Local Business Development (LBD) program,

first launched in 2001, helps small companies and

cooperatives in Riau, East Kalimantan and West Java.

The scheme is intended to develop small local companies

and cooperatives located in our operational areas,

that they might evolve into reliable, professional and

competitive suppliers of goods and services, while at the

same time boost the economy at the local level. Over

the past five years, more than 3,300 contracts have

been awarded and approximately 9,000 jobs have been

created. Chevron has purchased more than $48 million

in goods and services under the program.

Through LBD workshops, budding entrepreneurs are

provided with training in Health, Environment, and

Safety , procurement procedures, business ethics,

project management, technical aspects and financial

management to develop the capacity of LBD partners.

In 2008, our LBD program was recognized by the

Ministry of Energy and Mineral Resources with the

bestowing of the Padma Award for Social Solidarity.

Improving the Standard of Life

In eleven coastal villages in Penajam Paser Utara and

Kutai Kartanegara regencies, East Kalimantan, Chevron

established the Community Coastal Empowerment

Program. The program objectives are to improve

community income and livelihood to support sustainable

economic development by strengthening economic

institutions and by optimizing the use of marine and

coastal resources, and to empower the economic

capability of coastal communities by providing

assistance for the development of marine fisheries and

small scale businesses.

In Mount Salak, West Java, we establish a Community-

based Environmental Conservation and Micro Finance

Development program. The main objectives of

this initiative are to strengthen local communities’

capacity in improving local economic security

through entrepreneurship for woman and youth and

microfinance institutions, while at the same time

maintaining and upgrading forest areas and other

natural resources surrounding our Salak operational

areas, through income generating activities for

community-based conservation efforts.

Protecting the Environment

In Balikpapan, East Kalimantan, Chevron pioneered a

Domestic Waste Management program that has helped

create healthier living conditions for 450 beneficiary

households. The program, which is based on community

participatory model, applies the “4R” concept, namely

reduce, reuse, recycle and replant. The program has

since been expanded to provide broader coverage

and engaged a multitude of stakeholders to build a

composting house in 2006. Today the composting house

can produce 2.5 tons of compost fertilizer monthly,

which brings economic benefit by generating additional

income for women in seven neighbourhoods. Responding

to the success of this initiative, the Government of

Balikpapan Municipality adopted the “4R” concept and

has replicated this program in 27 other sub-districts

within Balikpapan city.

Chevron, together with the Mount Halimun-Salak

National Park and the Raptor Sanctuary Partnership

Network, established a new raptor sanctuary for the

Javan hawk-eagle (Spizaetus bartelsi), which is listed

as a critically endangered species. The establishment

of the sanctuary marked the initial step in the

development of a multiparty professional network to

support education, research, and conservation efforts

for raptors and their habitats. The program also includes

heightening community awareness of the importance of

biodiversity in the Mount Halimun-Salak National Park

and its surrounding areas, which play host to Chevron

geothermal operations.

In late 2011, in collaboration with Mount Halimun-

Salak National Park, Kehati Foundation and local non-

governmental organizations, we established the Green

Corridor Initiative, a program to restore degraded forest

areas that connect Mount Salak conservation area and

Mount Halimun National Park. This program aims to

plant 250,000 trees in five years.

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Chevron has supported response, relief and recovery

efforts after natural disasters in Indonesia. These are

some examples of how our local partnerships have

helped to restore access to healthcare and basic human

needs, as well as implementing efforts for lasting

recovery.

Shaping the Future of Development in Aceh

In response to the earthquake and tsunami disasters

that affected the northern part of Sumatra in 2004,

Chevron’s immediate response was to provide assistance

including food, clothing, potable water and employee-

raised cash ($2 million in total). In addition to the

immediate response assistance, in partnership with the

Government of Aceh, and various partners, Chevron also

provided longer-term support through the Chevron Aceh

Recovery Initiative (CARI).

The company’s approach focused on developing

public-private partnerships to deliver economic growth

and capacity-building programs through education,

vocational training, micro-enterprise and small business

development. Seven districts and three cities in Aceh

Province and the Nias Islands benefited from Chevron’s

assistance, and more than 100,000 people in Aceh have

been helped by the Company’s efforts to date.

Education and training are central to building capacity

and sustaining long-term economic development in

tsunami-affected areas. Chevron and its partners

have invested in a number of focused education and

vocational training projects, to address both immediate

and longer term needs, including the foundation of the

Politeknik Aceh.

A joint initiative of Chevron, the United States Agency

for International Development (USAID), and the Aceh-

Nias Reconstruction and Rehabilitation Agency (BRR),

Politeknik Aceh opened its doors to students for the first

time in 2008. The 9,000 square meters, 450-student

facility was officially opened on February 23, 2009, by

Indonesian President Susilo Bambang Yudhoyono.

Politeknik Aceh offers degrees in mechatronics,

information technology, industrial electronics and

accounting. Chevron has spent approximately $6 million

on the polytechnic, fully funding the construction of

the facility. We contributed a total of $14.7 million for

disaster recovery, which included the funding for the

Rehabilitating Livelihood in Disaster-stricken Areas

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polytechnic and roughly $9 million to support long-

term economic development and sustainable-growth

initiatives. In addition, we were able to use contributions

to secure $15 million in partner funding. For instance,

we partnered with the Indonesian Red Cross to provide

organizational and human-capacity building for medical

staff, with JHPIEGO to provide midwifery training in a

cluster of villages in Aceh Besar, and with the Indonesia

Heritage Foundation to provide teacher training and to

open 30 new pre-schools in Aceh.

Chevron Earthquake Recovery Initiative

We also provided immediate and recovery efforts in the

aftermath of the natural disasters in Yogyakarta, West

Sumatra and West Java.

In response to the Yogyakarta quake in 2006, we helped

rebuild the state-run Kalongan Elementary School in

Sleman, Yogyakarta and provided technical assistance

to Bero Elementary School No. 1 in Klaten, Central Java,

during its reconstruction.

We provided support to the victims of the earthquake

in West Sumatra that struck in 2008. Chevron, its

employees and their families helped reconstruct the Aie

Angek State Elementary School No. 6 in Tanah Datar

Regency.

Then in 2009, many parts of West Sumatra, including

the province’s capital Padang, and West Java were

affected by another devastating earthquake. Using the

experience from Aceh and Yogyakarta, we launched our

Chevron Earthquake Recovery Initiative (CERI), which,

in addition to providing emergency relief, focused on

recovery and reconstruction in the education sector.

Two schools were selected for assistance, the Padang

No. 5 State Technical Vocational School and the Nan

Sabaris No. 21 State Elementary School in West Sumatra.

Meanwhile, in response to the West Java earthquake,

Chevron helped rebuild state-run Cipanas Elementary

in Sukabumi and Garut No. 23 State High School in

Pakenjeng. As a result of our immediate response,

students were able to move back into their classrooms

and out of the emergency tents they had been using as

temporary classrooms.

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Striving to be the Partner of ChoiceOur 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

Government of Indonesia as well as from national

professional associations in various areas, such as

employee career development, HIV-AIDS prevention,

safety and occupational health, environmental

protection and for being the nation’s best and most

admired company.

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Heading into the FutureFor the past 80 years, Chevron has been a proud member of Indonesian society. We have been and will continue to deliver energy for the country’s growing economy and continue supporting the livelihood of Indonesian people.

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Chevron IndoAsia Business UnitHead Office:Sentral Senayan I Office TowerJl. Asia Afrika No. 8Jakarta 10270, Indonesia

Operating Office:Rumbai, Pekanbaru 28271Riau - Indonesia

Operating Office:Pasir Ridge, PO BOX 276Balikpapan 76102 - Inoonesia