Providing Energy to Drive Human Progress

PT. Chevron Pacifi c IndonesiaChevron Indonesia CompanyChevron Geothermal Indonesia, Ltd.Chevron Geothermal Salak, Ltd.

The Power of Human EnergyChevron IndoAsia Business Unit

2

The world consumes more energy

than we can discover, and the

demand for energy is projected

to increase by 40% from 2010 to

2035*. Global energy demand is

growing significantly because of

population growth and improvements

to the quality of life.

Despite the declining reserves

and the existence of other energy

Source:

*EIA/DOE International Energy Outlook 2013

**Dewan Energi Nasional (DEN)

Energy Demand is Increasing resources to be developed, fossil

fuels such as liquids, coal, and natural

gas will continue to be the most

utilized energy.

Indonesia’s energy demand is also

expected to increase by up to 133%

by 2025 from 3.3 to 7.7 million Barrel

Oil Equivalent Per Day (BOEPD)**.

The country continues to face a

widening supply-demand gap due to

significant challenges in finding and

developing new energy resources.

At Chevron, we recognize that the

world needs all the energy we can

develop to support the economic

growth and human development

progress around the globe. We are

developing energy resources that

help build a secure and diversified

energy future.

3

The demand for global energy is projected to

increase by

40% from 2010 to 2035

Indonesia’s energy demand is expected to increase by up to

133%

by 2025

Indonesia’s energy demand increases by 2025 from

3.3 to 7.7 million BOEPD

55

We explore for, produce and transport

crude oil and natural gas; refine, market

and distribute transportation fuels

and lubricants; manufacture and sell

petrochemical products; generate power

and produce geothermal energy; provide

renewable energy and energy efficiency

solutions; and develop the energy

resources of the future, including research

into advanced biofuels which are vital to

sustainable economic progress and human

development throughout the world.

Our success is driven by our people

and their commitment to get results

the right way—by operating responsibly,

executing with excellence, and applying

innovative technologies and capturing new

opportunities for profitable growth.

Our diverse and highly skilled global

workforce consists of approximately

64,500 employees around the globe.

Providing Energy for Human Progress

Our vision is to be the global energy company most admired for its people, partnership and performance.

The foundation of our company is built on

our values, which distinguish us and guide

our actions. We conduct our business in a

socially responsible and ethical manner. We

respect the law, support universal human

rights, protect the environment and benefit

the communities where we work.

We invest in providing safe, efficient and

reliable energy supply to meet the world’s

energy demand. The investment which

has been supporting the government

host developed the energy potentials

and providing substantial benefits to the

country’s economy for decades.

As a company and as individuals, we

take great pride in contributing to the

communities where we live and work.

Chevron is one of the world's leading integrated energy companies. We are involved in virtually every facet of the energy industry.

6

Chevron's partnership with the people

and the Government of Indonesia can be

traced back to 1924, when the Standard

Oil Company of California (Socal),

now Chevron, dispatched a geological

expedition to the island of Sumatra.

Chevron has been Indonesia’s largest

producer of crude oil which delivers

approximately 40% of national production

from its operations in Riau and East

Kalimantan and provides electricity for

millions of Indonesians from its geothermal

projects in West Java. Our total cumulative

oil production of more than 12 billion

barrels has provided significant benefits to

the country for decades.

In the Philippines, Chevron has been

partnering with the people and the

Chevron IndoAsia Business UnitChevron plays an important role in delivering energy for Indonesia and the Philippines through Chevron Asia Pacific Exploration and Production under its IndoAsia Business Unit (IBU).

Government of the Philippines since

1972 and has become one of the largest

investors in the Philippines. Chevron holds

an interest in the Malampaya gas-to-power

project, the first natural gas development

and largest industrial project in the

Philippines.

Chevron’s geothermal operations in

the Philippines help make us one of the

world’s leading producers of geothermal

energy. Our innovations have helped

make the Philippines the second-largest

geothermal energy producing country in

the world, after the United States, and

we are exploring new opportunities for

geothermal power in the Philippines.

Through its subsidiaries, PT. Chevron

Pacific Indonesia and Chevron

Indonesia Company, we conduct oil and

gas operations. Chevron also manages

geothermal projects through Chevron

Geothermal Indonesia, Ltd., and Chevron

Geothermal Salak, Ltd., in Indonesia,

and Philippine Geothermal Production

Company, Inc., in the Philippines.

Our 6,300 highly-skilled, dedicated

employees and more than 30,000 business

partner employees in Indonesia and

the Philippines continue to deliver safe,

efficient and reliable energy on behalf of

the countries. Currently, about 97 percent

of IBU employees are Indonesian and

Filipino nationals.

7

>90years of partnership in Indonesia

Deliver about

40% of national oil production

>12 billion barrels oil of total cumulative production

8

Leading in Technology and Innovation

Chevron continues to invest in Indonesia

to apply advanced technology and

innovation to maximize oil recovery

from the mature fields. In our mature

oil fields in Duri, we use specialized

heat management techniques, such

as steamflooding and other enhanced

recovery technologies to coax heavy

oil. 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 collaborate with the Government of

Indonesia to study a variety of enhanced

oil recovery technologies in order to

economically recover more oil reserves

and sustain production at the mature

Minas field. We began applying water

injection technology in Minas in the

1970s. Since then, the secret to the

success of Minas has been “pattern

waterflooding”, or the injection of water

into the reservoir to help push available

oil to the surface. Our secondary recovery

techniques have made the field the

largest waterflood project in Southeast

Asia.

We are also piloting a chemical enhanced

oil recovery (CEOR) technology in the

Minas fields, an area in which Chevron

specializes, representing Chevron’s

ongoing efforts to apply innovative

solutions in support of Indonesia’s future

energy goals.

Chevron is a world leader in deepwater

developments and operates the first

deepwater project in Indonesia, the West

Seno field in East Kalimantan. Around the

world, we have safe, cost effective and

Technology plays a pivotal role in advancing all aspects of our business. It enables us to find new resources, overcome geological challenges and achieve the best and most cost-effective results.

timely delivery of numerous deepwater

development projects, including in the

Gulf of Mexico, offshore Nigeria, offshore

Angola, and offshore Brazil.

Our global expertise and capabilities in

managing world-class deepwater projects

will be used to develop Indonesia’s first

ultra deepwater natural gas project

which covers five fields: Bangka, Gendalo,

Gehem, Gandang and Maha at depths

varying from 3,000 to 6,500 feet.

At Chevron, we recognize that the world

needs all the energy we can develop.

We are leading the way in developing

geothermal energy as a clean and

renewable energy source, since it is

derived from the natural heat contained

within the earth.


9

Piloting

Chemical Enhanced Oil Recovery (CEOR)

The world leader in

deepwater development

Leading in developing renewable

geothermal energy sources

Managing one of the world largest

steamfl oodoperations

Operating the largest

waterfl oodproject

in Southeast Asia

11

Energy resources development and environmental management must go hand in hand. We place the highest priority on protecting people and the environment in which we operate.

In Indonesia and around the globe, we

operate our oil, gas and geothermal

operations in accordance with applicable

environmental laws and regulations, and

recognized global industry standards.

We apply the same standards and best

practice in environmental management

and continue to seek new ways to minimize

our footprint and improve environmental

and social performance.

We have invested in a number of

environmental programs approved by the

government and have been recognized

as a leading industry which reduced air

emissions, produced water and solid waste

associated with our operations.

We continuously work hard to maintain our

reputation for world-class performance

through the 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”.

We have reduced air emissions from

operations by 70 per cent over the last

ten years and we have started a project

to eliminate produced water discharge

altogether from our operations. In the

Minas fi eld, we practice zero water

discharge, or Zewadi. We do not discharge

produced water into the environment,

but rather re-inject it back into the earth

as part of the effort to produce more oil.

By implementing Zewadi, we comply with

the environmental law and conserve the

environment.

In our offshore operations in East

Kalimantan, we continue our effort to

reduce fl aring or venting. This program

has successfully reduced greenhouse gas

emissions, by operating vapor recovery

and gas compressors so that the recovered

associated gas can be utilized as fuel gas

at these offshore fi elds as well as for gas

sale.

Geothermal power plants require minimum

land use and emit virtually no greenhouse

gases. Our geothermal operation in West

Java is the fi rst geothermal company to

be awarded Certifi ed Emission Reductions

(CERs) recognition from the United

Nations Framework Convention on Climate

Change (UNFCCC) in the energy sector.

This milestone recognizes Chevron and

Indonesia’s commitment to developing

clean renewable energy sources.

Protecting People and the Environment

12

Building a Workforce with World-Class Capabilities

We invest in developing our employees,

of whom 97% are Indonesian, through

various world-class training and career

development programs that help shape

the whole industry. We believe that

by investing in our employees we are

strengthening our organizational capability,

while at the same time developing a

talented Indonesian workforce to support

the national capacity development.

We have established a number of people

development and training programs

to ensure that our employees have all

the resources to enrich their personal

learning while continuously building our

organizational capability.

Horizons

The Horizons program is a competency-

based employee development program

that began as a pilot project in 2001.

The Horizons program has evolved over

the years to become truly global and

multidisciplinary in nature. Participants,

who are recent college graduates – or

those with fewer than fi ve years of work

experience, begin the fi ve-year program

upon joining Chevron and engage in its

three basic components: mentoring, job

rotation and technical training.

The program targets new Chevron

employees in the following technical areas:

Drilling and Completions; Earth Science;

Facilities Engineering; Health, Environment

and Safety; Information Technology;

Petroleum Engineering; Supply Chain

Management; and Business Development,

Planning and Commercial.

Career Development Assignment

Career Development Assignment (CDA) is

a development program intended to give

opportunities to develop and to retain the

“best talent” with proper knowledge and

skills in alignment with the organizational

business needs.

By attending CDA, the employees are

expected to obtain knowledge, skills, and

experience that help transfer technology

and enhance their professionalism. The

participants will also be exposed to a global

working environment in a multi-cultural

atmosphere and build a new network with

other high caliber professionals.

International Assignment

We continuously strive to provide our

Indonesian employees with opportunities

to develop their career and achieve

their goals through Chevron-sponsored

international assignments. The program

provides greater possibilities for our

employees to contribute to Chevron’s

worldwide operations and to bring global

capabilities and experiences when they

return to Indonesia.

To date, many Indonesian employees have

participated in this prestigious assignment

in various countries in different continents

around the globe, including the Americas,

Europe, the Middle East and Africa.

Employee Self Development Program

(ESDP)

We provide educational assistance

under our Employee Self Development

Program (ESDP) to support our employees

pursue higher education, including both

undergraduate and postgraduate degrees.

Through this program, employees

can improve their competency and

qualifi cations by taking formal education

at their own pace while they continue to

manage their jobs.

Internship Program

We believe that the future generation of

our global talent should be developed

earlier before entering their real jobs.

Chevron offers an internship program

that gives the students a three-month

apprenticeship in Chevron under a

University Partnership Program (UPP),

a global program developed by Chevron

in partnership with more than 100 world

class universities in 12 countries, including

Indonesia. Chevron partners with the

Bandung Institute of Technology (ITB) and

the University of Gadjah Mada (UGM).

Through this internship program, students

have the opportunity to apply their

knowledge, learn new skills, and build

networking relationships.

Chevron continues to believe that its employees are the most vital asset in the organization, enabling the Company to deliver its commitment to the people and the Government of Indonesia.


14

Optimizing Energy Potential in Sumatra

PT. Chevron Pacific Indonesia

15

Chevron, through its subsidiary PT. Chevron Pacific Indonesia, operates three major fields in Riau: Duri, Minas and Bekasap, as well as managing Dumai wharf, the final terminal for oil transport.

export. The Minas Field was discovered in 1944, and commenced

production in 1952.

It took 17 years to reach the one billion barrel milestone in 1969.

In the 1970s, the first water injection technology was introduced

and applied in Minas. This cutting-edge technology successfully

boosted oil production. Just seven years after reaching one billion

barrels of oil production, in 1976, Minas recorded its second billion

barrels of oil production. In 1984, Minas reached the three billion

barrel oil production mark.

The 1990s saw the installation of a pattern waterflood method in

the Minas Field. Six new wells were drilled around every old well

in the center of the field. The wells were arranged in a hexagonal

pattern with one water injector surrounded by six producers.

Through this new method, Minas reached four billion barrels of oil

production by 1997.

We continue to manage extensive pattern waterflooding

operations at the Minas Field, and are working on a trial of

chemical enhanced oil recovery, in collaboration with the

Government of Indonesia.

The Bekasap area consists of a number of productive fields

producing a light crude type of oil. Chevron continues to study

intensively the potential of major Bekasap, Bangko, Kotabatak,

Balam and Petani fields and to carry out numerous development

programs through the application of advanced exploration and

production technologies.

Dumai Wharf

Crude oil from Chevron’s production fields is transported to

Dumai through a 600-kilometer long pipeline system to a tank

farm with a 5.1 million barrel storage capacity. From the tank farm,

oil is pumped to either the Pertamina refinery, onto oil tankers

at Dumai Wharf, or shared between them. Using high-capacity

pumps, Dumai Wharf can load four tankers simultaneously.

The Duri Field

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

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.

The Duri Field was discovered in 1941 and operation commenced

in 1958, following the completion of a 25-inch diameter pipeline to

transport oil to the port of Dumai for sale. In the 1980s, as natural

reservoir pressures began to drop, production yields from Duri

declined dramatically. Then, through the marvel of an enhanced

oil recovery technology known as steam flooding, production from

the Duri Field was rejuvenated.

The Duri Steamflood project was dedicated by President Soeharto

on March 3, 1990, and achieved its peak production rate of

300,000 barrels of oil per day (BPOD) in 1994. A year later, the

landmark figure of one billion barrels of cumulative oil production

was marked. In 2006, the Duri Field recorded another milestone

by producing two billion barrels of oil.

To date, the DSF project has successfully developed 12

development areas. The first area - including all major supporting

facilities, namely gathering stations and steam generating stations

- was constructed in 1981. The DSF development, North Duri

Development Area 13 is progressing with the wells and facilities

development within the Duri Field. The first oil of NDD Area 13 was

produced on September 16, 2013. Chevron continues to develop

the Duri field as part of its commitment to support Indonesia’s

energy goals.

The Minas Field

The Minas Field is the largest oil field ever discovered in South

East Asia. It produces the world-renowned Sumatra Light Crude

(SLC) oil. Although Minas was the third oil field discovered in

our Sumatra operations, it was in fact the first to produce for

16

Going Deeper to Tap Energy in East Kalimantan

Chevron Indonesia Company

17

Chevron Indonesia Company (CICo)’s legacy started in 1968, when the Company signed its first Production Sharing Contract (PSC) for an offshore block located northwest of Sumatra. However, it was its second PSC, signed the same year, which established the Company. This PSC is located in East Kalimantan and covers both onshore and offshore concession areas.

Terminal, Penajam Supply Base and Pasir Ridge Balikpapan Office.

Crude oil and natural gas from the South Area are processed at

the Lawe-lawe Terminal.

The discovery of the West Seno Field marked a new phase

in energy development project in Indonesia: the oil and gas

deepwater development. The West Seno Field lies in Makassar

Strait PSC, with a water depth varying between 800 meters (2,400

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

We will bring our global expertise and capabilities to develop the

Indonesia’s first ultra deepwater natural gas project. This project

will be the deepest water depth development in Indonesia and

requires state-of-the-art deepwater technology and world-class

project management in order to safely and efficiently develop the

resources. The project covers five fields; Bangka, Gendalo, Gehem,

Gandang and Maha at depths varying from 3,000 to 6,500 feet.

In 1970, we discovered Indonesia’s largest offshore oil and gas

field, the Attaka Field, located in the Makassar Strait. Between

1973 and 1995, CICo also discovered the Sepinggan, Yakin,

Melahin, Kerindingan and Santan fields, all located off coast of

East Kalimantan. In 1996, the Company commenced exploration

in its deepwater development project in Makassar Strait, with the

discovery of the West Seno Field.

Our operations in East Kalimantan consist of three main areas:

North Area, South Area and West Seno, a deepwater project

in Makassar Strait. In North Area, we operate Attaka, Melahin,

Kerindingan, Serang and Sapi fields, as well as the Santan

Terminal. Attaka Field earned the world’s recognition as a giant

oil field is recognized as the largest offshore oil field in Indonesia.

Crude oil and natural gas produced from the North Area are

processed at the Santan Terminal. The natural gas is also being

transported to government-owned Bontang LNG Plant. In the

South Area, we run the Sepinggan and Yakin fields, the Lawe-lawe

18

Delivering Clean Renewable Energy

Chevron Geothermal Indonesia, Ltd.Chevron Geothermal Salak, Ltd.

19

We are developing geothermal energy resources that will help build a secure and diversified energy future. It is a clean and renewable energy source that can provide more than 90% of its generating capacity year after year, and can reduce reliance on fossil fuels. Today, we operate more geothermal energy facilities than any organizations, public or private.

In 2005, we achieved a 377 MW generating capacity, which

marked the Salak project as one of the largest geothermal

operations in the world.

Currently, our highly skilled CGS workforce consists of

approximately 231 national employees, supported by hundreds of

business partners.

Chevron Geothermal Indonesia, Ltd.

Chevron Geothermal Indonesia, Ltd., (CGI) supplies geothermal

steam to the 55 MW power plant operated by PLN. We also supply

geothermal steam and operate a total of 215 MW power plants,

supplying electrical power for the Java - Madura - Bali grid. We

started up Darajat geothermal project commercial operations,

located near Garut, West Java, with 145 MW installed capacity, in

November 1994. With the completion and upgrading of Unit III in

2009, the total capacity of Darajat reached 270 MW.

CGI is the first geothermal company to be awarded Certified

Emission Reductions (CERs) recognition from the United Nations

Framework Convention on Climate Change (UNFCCC) in the

energy sector.

This milestone recognizes Chevron and Indonesia’s commitment

to developing renewable energy sources. The significant result of

this program is in its reduction of greenhouse gases, through the

operation of a low-emission geothermal plant. Since December

2006, CGI has contributed a documented 4.2 million tons of

Certified Emission Reductions (CERs).

Currently, CGI is supported by more than 277 dedicated skilled

employees and an additional several hundred business partner

employees.

Chevron was a pioneer in modern times, beginning its geothermal

operations during the 1960s with the development of the Geysers,

the world’s largest geothermal field, north of San Francisco,

California.

In the 1970s, two discoveries in the Philippines led Chevron to

the development of the Tiwi and Makiling-Banahaw (Mak-Ban)

geothermal projects in Luzon.

Chevron detected worthwhile geothermal potential in the Salak

and Darajat fields, in mountainous West Java, during the 1980s,

thus expanding our historical presence in the oil & gas business in

the Republic of Indonesia since 1924. We began commercial power

generation from geothermal steam in the 1990s, and currently

produce steam and electricity equal to 647 MW. This represents

about 50 percent of Indonesia’s total geothermal production,

sufficient to power approximately three million homes.

Chevron’s combined geothermal operations in Indonesia and the

Philippines supply a total of 911 MW of installed capacity, enough

clean and sustainable energy to meet the needs of around 4.2

million homes in the two countries. Geothermal development

promises a huge, long-term resource of heretofore untapped

energy. As Chevron continues to pursue geothermal opportunities,

we stay at the forefront of delivering clean, renewable energy to

our communities.

Chevron Geothermal Salak, Ltd.

Chevron Geothermal Salak, Ltd. (CGS) supplies geothermal steam

to generate electricity from the 180 MW power plant operated by

PLN, Indonesia’s state-owned electricity company. We also supply

geothermal steam and operate 196.8 MW power plants generating

electricity for the Java-Madura-Bali grid. An initial supply of

steam was channeled in 1994, thus commencing our commercial

production, with 110 MW delivered to PLN.

2020

Chevron embraces gotong royong that

means offering assistance, sharing

burdens and working with others.

Everywhere we work, we partner

with governments, non-governmental

organizations and community to build

productive, collaborative, beneficial and

lasting relationships, understand their

needs and priorities, manage the impacts

of our operations and develop strategic

social investments programs which create

sustainable values. These concepts are

embodied in The Chevron Way, and at

its heart is our vision ... to be the global

Advancing Partnership and Empowering CommunitiesFor decades, Chevron has been focused on the same goal – safely developing reliable energy to support the country’s economic growth and development and improve the quality of life in areas in which we operate. We have learned that Chevron’s business success is strongly linked to the progress of society.

Our programs provide access, opportunity and capability for hundreds of thousands of people, to support them to become self-reliant communities.

energy company most admired for its

people, partnership and performance.

Chevron has been contributing to the

economic and social well-being of the

people in Indonesia since the 1950s,

because we have learned through decades

of experience that our business success

in deeply linked to society’s progress and

local economy.

Our social investments cover from Aceh

to Papua, with a significant focus on

health, education and vocational training,

economic development, environment

protection and disaster rehabilitation,

aim to create prosperity then, now and

generations to come.

We strive to remove barriers to economic

growth, promote healthy communities

and improve access to health care. We

boost local economies, increase incomes

and improve livelihoods in three primary

ways: by creating jobs and developing local

workforces, supporting local businesses

and leveraging our employees and assets.

22

Advancing Partnership and Empowering Communities

Providing Access and Support for Health CareChevron helps promote healthy communities and improve access

to health care aimed at eradicating diseases.

Funded

to fi ght AIDS,

Tuerbculosis and Malaria

in 2008

Carry out

supplementary feeding

activities for around

in Minas for several years

The HIV and AIDS

awareness campaign program

has successfully reached

in 2011

25,000youngster

$30 million 400

infants

23

Chevron helps promote healthy

communities and improve access to health

care aimed at eradicating diseases.

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. Chevron’s

$30 million commitment in 2008 has

funded programs to fi ght these diseases in

six countries, including Indonesia and the

Philippines, as well as Thailand, Nigeria,

South Africa and Angola.

In Indonesia, Chevron plays an active role

in combating HIV and 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 an

anti-discrimination approach for all our

employees and their family members. We

also collaborate with local and national

government as well as non-governmental

organizations to organize and participate

in HIV and AIDS prevention and awareness

campaigns for surrounding communities

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.

We also offered health and nutrition

types of trainings to increase the capacity

of community health care center’s

cadres in several districts in Riau, East

Kalimantan and West Java as part of our

effort to enhance the quality of health

care services.

We also partnered with the Habitat for

Humanity (HFH) Indonesia in upgrading

the quality of life of 250 pre-welfare

families in Tanah Abang, Jakarta and

Mauk, Tangerang by implementing a

home renovation as well as sanitation

and clean water facilities.

throughout our operations in Riau, East

Kalimantan, West Java and Jakarta.

In 2007, we became a founding member of

the Indonesian Business Coalition on AIDS.

We believe that the business community

plays a vital role, working together to

adopt the best practices for preventing the

spread of HIV and AIDS, starting in our own

workplaces. We also helped establish the

“I Wanna Live” HIV and AIDS awareness

campaign for students and youth in West

Java. The program has successfully

reached more than 25,000 youngsters.

We support a series of health programs

with emphasis on mother and child. In

the Minas and Penajam Paser Utara, we

have worked together with our partners

to sustainably improve the health of

pregnant women, postpartum women and

their infants by enhancing the community

capacity and access to better quality

maternal and newborn health services. We

also help them prepare for childbirth and

obstetrics and newborn complications,

using the already tested community

engagement approach known as Desa

SIAGA.

24

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 establish 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.

We also support the education of the

Sakai people, an indigenous tribe in Riau.

We supply books, provide incentives for

teachers and offer educational grants to

thousands of Sakai children through our

Beasiswa Anak Asuh Sakai (Sakai Foster

Children Scholarship) program.

Politeknik Caltex Riau

In 2001 in collaboration with the Riau

provincial government, we established the

first polytechnic institution in Riau, the

Politeknik Caltex Riau (PCR), to train local

students for jobs in the industrial sector.

The polytechnic now has some 1,500

students enrolled and offers a curriculum

to match the province’s business needs

and contribute to its economic growth.

Overall, PCR 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, approximately 2,000

students have completed their studies at

PCR.

Darmasiswa Chevron Riau Scholarships

Chevron established the Darmasiswa

Chevron Riau scholarship program in

2001 to aid talented high school students

in the province to continue their college

education. Working together with

provincial and district/municipal education

agencies, Chevron conducts a defined

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.


Investing in Education and People Development

25

selection process each year to identify

students with strong potential. Students

who are selected are given the opportunity

to attend some of the most prestigious

colleges in Indonesia, such as the

University of Indonesia, Bandung Institute

of Technology, Gadjah Mada University

and Padjajaran University. To date,

approximately 850 outstanding students

have benefited from this program.

Vocational Training for Youth and

School Dropouts

Throughout our operations in Riau, as

well as in East Kalimantan and West Java,

in collaboration with local governments,

non-governmental organizations, youth

organizations, universities and vocational

schools, we established Vocational Training

for Employment and Entrepreneurship

(VoTEE) 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, underserved students and

women.

The training courses vary from year to year

but generally include welding, automotive

repair, heavy-equipment operation,

carpentry, rigging, electrician, motorcycle

technician, audio technician air-conditioner

technician, entrepreneurship, batik and

craft making, beautician, sewing and

cooking. In Duri, in partnership with

Politeknik Caltex Riau, we also provide

selected graduates with an endowment

fund to start their own businesses. 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.

Since 2008, our educational SuperCamp

program in West Java has helped more

than 1,100 students, with about 95 percent

moving on to college.

Newspapers in Education: Training

Teachers and Students

Chevron partnered with several

organizations, including The Jakarta

Post Foundation 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.

This program has helped enrich English

instruction for more than 5,400 students

and 700 teachers through workshops

as well as reaching more than 12,000

students through various edutainment

competitions from 100 schools in 25 cities

over eleven provinces across the country.

Indonesia Mengajar

We partnered with Gerakan Indonesia

Mengajar (the Indonesia Teaches

Movement) to support seven Pengajar

Muda (young teachers) working in

elementary schools in seven remote

districts in Fak Fak Regency, West Papua in

2013. In 2014, we continued our assistance

by supporting seven Pengajar Muda who

were deployed in elementary schools in

Bengkalis Regency, Riau.

University Partnership Program (UPP)

Chevron's University Partnership Program

(UPP) works with more than 100 college

and university partners around the world

to help attract and develop talented

students and teachers who can help

achieve a more technically proficient global

workforce.

UPP provides strategic and multifaceted

support, which includes scholarships,

grants, funding for faculty positions,

department gifts and laboratory

upgrades. We consider these educational

partnerships to be strategic investments

in the economic development of local

communities and the future of the energy

business.

Since 2006, we have provided our

university partners, Bandung Institute

of Technology (ITB) and the University

of Gadjah Mada (UGM), with graduate

fellowships, distance learning and

internship programs. We have also

improved their laboratory facilities and

created a series of guest lecture.

26

Advancing Local Business

Chevron supports programs that offer

training in small business development

and supply chain management. Our Local

Business Development (LBD) program is

intended to develop and transform small

local companies and cooperatives located

in our operational areas in Riau, East

Kalimantan and West Java into reliable,

professional and competitive suppliers

of goods and services, while at the same

time boost local economy. Since it first

launched in 2001, the program has

resulted in more than 6,900 contracts

have been awarded to Indonesian local

companies, approximately 47,500 jobs

have been created and with more than

$100 million of goods and services

purchased.

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.

Promoting Entrepreneurship

Our multi-year PRISMA program provides

small grants, capacity building trainings,

technical assistance and access to loan

through micro finance institutions to

local farmer groups, small businesses and

cooperatives in 11 regencies and cities in

Riau, East Kalimantan and West Java. In

total, PRISMA program supports more

than 1,100 beneficiaries. The program

covers assistance in various sectors,

including agriculture, fishery, processed

food commodities, creative industry in

the form of tenun (weaving) and batik

making as well as the establishment of

eco-cultural tourism villages.

We introduced an integrated farming

practice to the Sakai people in Riau by

providing them with agricultural, fishery

and livestock training as well as technical

assistance. In 2013, a cooperative was

established to better assist the Sakai

farmers in managing their fish and duck

farming and agriculture products as well

as product marketing and distribution.

Meanwhile, more than 800 farmers

in Darajat, West Java, benefit from an

integrated sheep breeding program,

which includes technical training in

cattle fattening, waste management,

biopesticide and biogas as well as micro

financing.


Driving Local Economic Development

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.

In collaboration with our partners, we identify programs to promote a better standard of living.

27

A group for people with disabilities and

women in Balikpapan is receiving training,

equipment, materials and marketing

help to produce environmentally-friendly

batik products. Similar assistance in

batik-making is also being offered to

a group of women in Rumbai through

the establishment of Cempaka Batik

House. Training and assistance in craft

production are also provided to women

in three different districts in East

Kalimantan. These women are trained

to transform non-recycled agricultural

and plastic waste into craft products,

such as purses, artificial flowers and tote

bags. In Dumai, we provide assistance to

Putri Tujuh weaving group, who produce

beautiful Siak traditional weaving cloth.

Started in late 2012, together with our

partner, we established a program of

which the main objectives are to increase

the income of local coconut famers and

coconut and palm sugar processors in

seven villages in Penajam Paser Utara

Regency, East Kalimantan, through the

applications of good agriculture and

processing practices. The program had

provided benefits to more than 280

and nearly 1,000 direct and indirect

beneficiaries, respectively. Some 40

small businesses have successfully

increased their income through the

reduction of production costs, product

diversification, and better product quality.

We have successfully established two

small and medium enterprise centers

(UKM) in Garut and Duri, which serve as

a learning and business consulting center

for small and medium-sized businesses.

The UKM Center in Darajat showcases

115 products made by 41 groups in the

area. The development program has

increased the community income by 40

percent. Meanwhile, Pusat Oleh-Oleh Duri

showcases nearly 100 products made by

more 110 beneficiaries.

We promote conservation efforts in

our Salak geothermal operations to

prevent further exploitation of the

forest. We support small and medium-

sized enterprises by offering training to

improve farming practices, which has

increased the harvest. In 2009, we helped

established three local cooperatives in

Salak, one of our geothermal operations

areas. In five years, the cooperatives

have provided loans to over 3,000 micro

businesses, with value over $500,000.

Assistance in Infrastructures

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 this road to

the North Sumatra Province through the

Bangko region.

Another milestone in our contributions

is the construction of the Siak Bridge,

the first bridge over the Siak River

that connected the southern area of

Pekanbaru with the northern area in 1977,

as well as connecting the western part

of Sumatra (the West Sumatra Province)

to the eastern part (Dumai in the Riau

Province).

In 2012, we supported the 18th National

Games, the first ever to be held in Riau.

Our support included the construction

of Chevron Balai Tanjak Laksamana, a

multipurpose building at the Rumbai

Sports Complex. This 47,000-square-foot

facility can accommodate 1,500 to 2,000

spectators and will provide long-term

benefits for a variety of social activities.

We also helped promote the National

Games by setting up and managing the

main media center in the Riau Central

Library for journalists covering this

quadrennial event. The value of our

assistance for the 18th National Games is

estimated at approximately $6.4 million.

28


Protecting Biodiversity and Conserving the EnvironmentOur social investment programs focus on biodiversity protection and environment conservation, with

emphasis on activities which contribute to local economic growth.

In Balikpapan, East Kalimantan, Chevron

pioneered a Domestic Waste Management

program that has helped create healthier

living conditions for 450 beneficiary

households. The program aims reduce,

reuse, recycle and replant, and can

produce 2.5 tons of compost fertilizer

monthly, which brings economic benefit by

generating additional income for women.

Responding to the success of this initiative,

the Government of Balikpapan Municipality

adopted the concept and has replicated

this program in 27 other sub-districts

within Balikpapan city.

We play an active role in rehabilitating the

Telaga Sari Urban Forest in Balikpapan

by establishing the Educational Forest

Center and taking part in tree plantings.

In 2013, we established a seedling nursery,

to ensure seedlings are safely grown to

a desirable size before being planted

at urban forest. For the past six years,

we have planted and replanted more

than 6,000 native trees. Meanwhile, in

Penajam area, we continue to support the

mangrove conservation area. Since our

involvement in 2003, we have successfully

re-established approximately 20 acre

of mangrove conservation area in the

southern part of Balikpapan city.

Chevron supports Indonesia's national

parks, conservation areas and other

environmental programs around the

country. In East Kalimantan, we helped

establish the Berau Marine Protected Area.

To help promote ecotourism, we worked

with National Geographic Indonesia to

produce a map of marine ecosystems

in the Berau Islands. This area includes

Derawan Island, home of the endangered

green turtle. In late 2014, we launched the

Maratua Ecotourism for Sustainable Small

Island program. The initiative promotes

economic welfare, community participation

in conserving biological diversity and

readiness in facing climate change.

2929

In partnership with National Geographic

Indonesia, we produced and disseminated

a map of Mount Halimun–Salak National

Park to increase public awareness of the

park's importance. We also produced the

"tourism triangle" map of Garut Regency

to encourage protection of natural and

cultural potentials in the area. We also

established Desa Wisata Ciburial, an eco-

cultural tourism village located in Garut,

which aim to preserve Garut local culture

and heritage while at the same time

increase the local community income.

Together with the Mount Halimun–Salak

National Park and Raptor Sanctuary

partnership network, we established the

Suaka Elang (Raptor Sanctuary). This

sanctuary has bird rescue operations and

educates the public about these birds

of prey and their habitats. In Riau, we

supported a migratory raptor inventory

on Rupat Island. In addition, we also

supported the endangered Sumatran tiger

population study to better mitigate the

potential human-tiger conflict in Duri area.

In late 2011, in collaboration with Mount

Halimun–Salak National Park, the Kehati

Foundation and local partners, we

established the Green Corridor Initiative,

a five-year program to help the local

community restore more than 1,250 acres

(5 sq km) of critical ecological zones

in the forested areas that connect the

ecosystems of Mount Halimun and Salak

National Park. This initiative aims to

plant at least 250,000 native trees over

five years and maintain a sustainable

environment for migratory animals

that are on the International Union

for Conservation of Nature's red list of

threatened and endangered species,

including the Javan leopard, the Javan

gibbon and the Javan hawk eagle.

30

Shaping the Future of Development

in Aceh

In response to the earthquake and tsunami

disaster that affected the northern part

of Sumatra in 2004, Chevron’s immediate

response was to provide assistance

including food, clothing, potable water and

$2 million raised by employees. 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.

The company’s approach focused on

developing public-private partnerships to

deliver economic growth and capacity-

building programs through education,

vocational training, microenterprises

and small business development. Seven

districts and three cities in the Aceh

Province and the Nias Island 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, and the Aceh-Nias

Reconstruction and Rehabilitation

Agency, 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 polytechnic and roughly $9 million to

support long-term economic development

Chevron supports relief and recovery efforts in the aftermath of natural disasters in Indonesia. These

are some examples of how our public-private partnerships have helped restoring access to health care

and basic human needs, as well as long-term recovery programs.


Lending a Helping Hand through Disasters Relief Program

31

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 preschools in Aceh.

Chevron Earthquake Recovery Initiative

We also provided immediate aid and

recovery support 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

elementary, SDN Kalongan in Sleman,

Yogyakarta and provided technical

assistance to SDN 01 Bero elementary

school 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 SDN 06 Aie

Angek elementary 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, which, in addition

to providing emergency relief, focused

on recovery and reconstruction in the

education sector.

Two schools were selected for assistance,

SMKN 5 Padang technical vocational

school and SDN 21 Nan Sabaris elementary

school in West Sumatra. Meanwhile, in

response to the West Java earthquake,

Chevron helped rebuild SDN Cipanas

elementary in Sukabumi and SMA 23 Garut

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.

32

Striving to Continue Supporting IndonesiaFor more than 90 years, Chevron has been a proud member of

Indonesian society. We have been partnering with the people and

the Government of Indonesia to deliver sustainable energy for the

country and are committed to continue supporting the livelihood of

the people of Indonesia.

Indonesia needs to maintain the energy supply from the current

declining assets to support its sustainable economic growth.

However, developing new energy resources is costly and may take

several years, requiring the Government of Indonesia to attract

well-capitalized investors with advanced technology and world

leading capabilities.

Chevron seeks to unlock Indonesia’s energy potential through

innovation, providing new oil from old fields and capturing

reliable power from the earth’s heat.

We continue to invest and bring our global experiences and

capabilities here in Indonesia.

Our dedication to collaboration and innovation supports our commitment to being the partner of choice. We believe that we can move Indonesia forward together.

34

PT. Chevron Pacific Indonesia

Sentral Senayan I Office Tower

Jl. Asia Afrika No.8

Jakarta 10270, Indonesia

Sumatra office

Rumbai, Pekanbaru 28271

Riau – Indonesia

Chevron Indonesia Company


Jl. Asia Afrika No.8


Balikpapan Office

Pasir Ridge, PO BOX 276

Balikpapan 76102, Indonesia

Chevron Geothermal Indonesia, Ltd.

Chevron Geothermal Salak, Ltd.


Jl. Asia Afrika No. 8


35

A milestone in commitment was the construction of the Siak Bridge, the first bridge

over Siak River that connects Pekanbaru’s southern and northern part of Sumatra

(West Sumatra Province) to the eastern part (Dumai, in Riau Province).

Chevron IndoAsia Business UnitSentral Senayan I Offi ce TowerJl. Asia Afrika No. 8Jakarta 10270, Indonesiawww.chevronindonesia.com

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Providing Energy to Drive Human Progress

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