Chevron made US$495 million profit in Indonesia last year

Chevron’s operation in Indonesia contributed US$495 million to the company’s consolidated profit last year.

According to its 2004 annual report, Chevron sales in Indonesia reached US$1.869 billion last year, slightly increased from US$1.759 billion in 2002. But the company’s after tax results increased from US$379 million in 2002 to US$495 million last year.

Chevron managed to increase its sales and after tax profit thanks to oil price hike in the last two years as the company’s output significantly cut down in 2002 after PT Caltex Pacific Indonesia, Chevron’s main subsidiary, transferred oil blocks with daily production of around 50,000 barrels to a company co-owned by local government in Riau province and Indonesian government.

The company’s merger plan with Unocal will strengthen its position in Indonesia, which is one of Unocal’s core areas for its international operations and represents a significant contributor to the company’s reserve and production base.

Unocal so far had invested US$5 billion to support its activities in Indonesia.

Indonesian government welcomed the Chevron-Unocal merger and saying it will not have negative impact for the nation’s oil and gas production.

Chevron won the race to acquire Unocal as other serious contender, the China National and Overseas Oil Company (CNOOC), is shopping around Indonesia to acquire more oil and gas assets. CNOOC is currently the second largest oil producer in Indonesia after Chevron.

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