First Oil Production From Chevron's Frade Field in Brazil

This summer, Chevron Corporation issued a press release announcing that its subsidiary Chevron Brasil Upstream Frade Ltda. Has begun crude oil production from the Frade Field. This project was Chevron's first major operated deepwater development in Brazil and the field contains an estimated 200 million to 300 million barrels of recoverable oil. This $3 billion project is expected to reach peak production (90,000 barrels of crude oil and natural gas liquids a day) in 2011 by using continuing development drilling.

Chevron Corporation controls a 51.74 percent operating interest in the Frade Field, which is situated in the Campos Basin in around 3,700 feet (1,128 m) of water and lies around 230 miles (370 km) northeast of Rio de Janeiro. It is planned that natural gas production will be provided for domestic use in Brazil and crude oil production will be exported to world markets.

"Successful development of the Frade Field unlocks a great new source of energy for the next two decades while establishing a significant platform from which Chevron can grow its upstream business within one of the world's most promising deepwater oil and gas regions," said George Kirkland, Chevron Upstream and Gas executive vice president.

The president of Chevron Africa and Latin America Exploration and Production Co., Ali Moshiri, praised the work being done and said, "Today's milestone is a direct result of the coordinated expertise and commitment demonstrated by our employees, partners and contractors in Brazil and around the world. Frade is an exciting asset that integrates the unique skills of both Chevron and Petrobras to help deliver new jobs, new facilities and new energy production in Brazil for Chevron."

Other partners in the project are Petròleo Brasileiro S.A. – Petrobras, which owns 30 percent interest, and Frade Japá o Petròleo Ltda., a joint-vehicle company of INPEX, Sojitz and JOGMEC, which owns 18.26 percent interest.