Chevron to make RI its Asian HQ

Chevron to make RI its Asian HQ

The Jakarta Post, Jakarta

U.S. Chevron Corp., the world's fifth-largest energy company,
plans to make Indonesia the headquarters for its Asian
operations, after its recent acquisition of a smaller rival
turned the country into its largest operating ground.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro
said on Monday that Chevron conveyed its plan to expand its
business in Jakarta and invest more in the oil, gas and
geothermal sector to President Susilo Bambang Yudhoyono.

"Chevron is now the largest foreign energy company in
Indonesia and Asia. By expanding its headquarters in Jakarta, we
expect it to have an advantageous multiplier effect for the
country," he said.

Purnomo made the remarks after accompanying Chevron chairman
and chief executive officer Dave O'Reilly to meet Susilo.

Chevron's sweetened bid of US$17.1 billion was accepted by
rival Unocal Corp., defeating a bigger offer of $18.5 billion
from the China National Offshore Oil Corp. (CNOOC).

In the meeting, Purnomo said, Susilo requested Chevron to
increase its oil production in Indonesia, especially in the old
fields around central Sumatra which accounted for about 50
percent of the country's oil output.

"Chevron said it would try to maximize oil output from this
region from a steep decline. We know this is an old oil field.
They also pledged to seek other oil and gas blocks in other part
of the country to maintain its production," he said.

Purnomo said Chevron also disclosed its plan to operate the
East Kalimantan gas pipeline and requested the government to help
develop infrastructure for supplying gas to the local market.

In the geothermal sector, the company would upgrade its power
plants in West Java by constructing two more power plants from
the current two. The combined plants would have a total capacity
of about 210 megawatts, Purnomo added.

Headquartered in San Ramon, California, Chevron operates in
approximately 180 countries, with a capital and exploratory
budget of US$10 billion this year, up from $8.3 billion in 2004.

From its oil output of more than 2.5 million barrels per day
(bpd) last year -- with two-thirds of the volume derived from
outside the United States and in more than 20 different countries
-- the firm recorded a revenue of $150.9 billion and a net profit
of $13.3 billion.