Update: Chevron to invest $900m to develop two fields in Duri

(Adds factsheet on Duri on the last paragraphs based on press statement from CPI)

PT Chevron Pacific Indonesia (CPI), a subsidiary of American energy giant Chevron Corporation, has prepared US$900 million to develop two new fields in Duri area of Bengkalis regency, Riau.

The North Duri Area 13 and Area 14 fields are expected to produce a combined 45,000 barrels of oil per day when the come into production in 2014.

"Investment for each of the Area 13 and 14 fields is equal the amount spent for the Area 12," CPI's President Director Suwito Anggoro was quoted by Detik.Com on Wednesday as saying during the ceremony to inaugurate the North Duri Area 12 operation.

In a statement distributed to the press, CPI explains that the firm invests up to $1.3 billion for the three fields, including $450 million for the Area 12 field. The Area 12 field is estimated to reach a maximum production of 34,000 barrels per day in 2012

Meanwhile, R Priyono, the head of oil and gas upstream regulatory body BPMIGAS, said the development of the Area 13 and 14 are expected to be started next year.

"The output from both the Area 13 and 14 may reach 45,000 barrels per day. This will help curb the decline in (the country's oil) production rate," he said.

He explained that CPI needed to drill 2000 wells within the three fields through which steam will be injected into the grounds to help push the oil trapped among stones onto the surface. The construction and production process will simultaneously last for 8 years.

During 2007, the majority of CPI?s production came from fields under primary or secondary within the Rokan PSC. The largest producing field is Duri, located in the Rokan PSC. Measuring 17 kilometers long and 8 kilometers wide, the Duri field was discovered back in 1941. Its gigantic reserve is the second largest in Southeast Asia after CPI?s Minas Field.

Duri has been under steamflood since 1985 and is one of the world?s largest steam flood development. The Duri Steam Flood (DSF) with over 4,000 production wells, 2,000 injectors and 500 observation wells, employs state of the art technology to recover the heavy crude oil from the relatively shallow reservoirs.

In 2006, DSF produced its two billionth barrel of oil in its 50-year production history.

DSF consists of multi development areas. The first of which was constructed in 1981. So far, 11 areas haven been developed. The development of three other areas, Area 12, 13, 14, is called the North Duri Development (NDD) project. (Denny)