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© Chevron 2005 DNA Tech Team Presentation July 20, 2006

Renewable Energy Darajat Unit IIICDM Project

Renewable Energy/Energy Efficiency and The CDM Four Season, 13-14 September 2006

OE-HES, Chevron Geothermal Indonesia Ltd.Dwita S. Prihantono

2© Chevron 2005 DNA Tech Team Presentation July 20, 2006

Presentation Agenda

Health, Environmental and Safety Policy (OE-HES)

Chevron Partnership in Indonesia

Chevron Geothermal Indonesia CDM Development Project Chronology

Darajat Unit III Project Overview

PDD, Methodology and Additionality

Darajat Unit III CDM Project : Meeting the National Sustainable Development Criteria

Community Development and Local Business Development

Emission / GHG Monitoring System and Program


Chevron Partnership in Indonesia

PARTNERS IN PROGRESSPARTNERS IN PROGRESS

Up Stream Oil/Gas

IndoAsia Business Unit

HYDROCARBON EXPLORATION & PRODUCTION UNDER

PRODUCTION SHARINGCONTRACT WITH PERTAMINA

OPERATOR OF Chevron’sGEOTHERMAL AND NATURAL

GAS DERIVED ELECTRICAL POWER BUSINESSES

Geothermal & Power Salak, Darajat, NDC

Upstream Oil and GasSMO, KLO

Geothermal Philippines

OPERATOR OF Chevron’sGEOTHERMAL ELECTRICAL

POWER BUSINESSES

Up StreamPower Generation Operations


Operational Excellence Health, Environment and Safety Policy


Darajat Unit III – Mission Statement

To build a great power project providing sustainable and clean

energy for the prosperity of Indonesian people


Project Location

Kecamatan Pasirwangi, Kabupaten Garut, JABAR

55 MW Pemasokan uapPembangkit Listrik dan (Unit I, II), sekarang sedangmembangun Unit III (110 MW)


Geothermal Schematic System and Production Facility


Darajat Unit III Objectives

Supply electricity to the JAMALI grid system to address critical shortage of energy;

Avoid greenhouse gas emissions that would otherwise been produced from electricity generation by fossil fuel based sources;

Achieve the Indonesian government’s energy diversification goal of minimizing oil consumption through the use of renewable resources; and

Contribute to sustainable development in the West Java region of Indonesia.


CDM Project Cycle & PDD Contents

Draft PDD

Methodology Panel Approval

No

Yes

Validation DOE1 Audit (KPMG)Ensures that:1. Host Country Ratified

Kyoto Protocol2. Host Country

Approves project3. PDD Audited

Project Implementation

DOE2 Audit (e.g. URS)

CDM EB Approval

CDM EB Issues Credits (CERs)

Project Design Document

Context / Overview

Baseline Scenarios

Additionality

Sustainable Development

ESHIA/EIA/AMDAL

Stakeholder Consultation

Project economics

GHG Monitoring Plan

Transaction costs

Project emissions

Project Design Document

Baseline Methodology

Indonesian Ratification

Final PDD

: Stakeholders: Current Process

DNA Host Country Approval


Darajat Unit III CDM Project Chronology

Project Initiative Note (PIN) - 20 Feb’03South East Forum on GHG Market Mechanism & Sustainable Development on 10 April ‘03

Formal Letter to PLN on Data Requirements of UNFCCC - JAMALI Calculation - 16 September 2004, followed with 5 October 2004 and 24 January 2005

Indonesia Ratify the Protocol Kyoto, 28 June 2004 and PK enter into force on July 2004

Chevron CDM Team Establishment and start developing CPDEP Initiatives – 28 June 2002

Prepare & PDD Submission to UNFCCC –based on Marrakech Accord - April 2004 - Review

CDM Energy Sectors Stakeholders Meeting at P3TEK Office – DNA, Sustainable Development Criteria dll. – 27 Agustus 2004

Consolidated Methodology onto gridACM0002 & Additionality - 27 Juli 2004

PLN response and Meeting on 21 October 2004

National CDM Forum after Ratification and Consolidated Methodology issue - 16 March 2005

Directorate General LPE Supports on JAMALI requirement , data relate to ACM0002- 9 March 2005 – More than 6 meetings

Stakeholders Energy Endorsed JAMALI calculation and data endorsement relate to ACM0002, Baseline Emission Factor is 0.728 tonnes CO2/MWh- 10 March 2006

Validation Data and Calculation by DOEafter Ratification and Consolidated Methodology issue - ////April

DNA and Stakeholders meeting on JAMALI Baseline Emission Factor 0.754 TonnesCO2/MWh - 22 August 2006

PDD Submission for Host Country Approvalto address ACM0002 - 19 June 2006 Presentation to Technical Team-20 July 2006

Chevron Geothermal Indonesia Ltd. received Endorsement from Indonesian Host Country Approval for CDM Darajat Unit III Project on 1 Sept 2006, Letter No.


Scope and Schedule

Darajat IDarajat IIDarajat III

110 MW single unit power plant Steam production from 2 new areas and 1 injection pipeline Same proven technology as Darajat Unit I and IILump Sum EPC contract with Thiess Kanematsu consortiumConstruction started 1 November 2004.Progress - 87% completion by 4th Qtr 2006


Darajat Unit III – ConstructionNov.04 / Feb. 06 / June 06


PipelineRoute 14 (June 2006)


Darajat Unit III CDM Project Meeting the National Sustainable Development Criteria


National Sustainable Development Criteria


Environmental Study

AMDAL Stage I:

ANDAL Proyek Pengembangan Lapangan Panasbumi Darajat, disetujui No. 1465/0115/SJ.R/1991 tanggal 22 April 1991

RKL/RPL Tahap I telah disetujui No. 1257/0115/ SJ.T/1994, tanggal12 Maret 1994

Mencakup kegiatan pasokan uap dari Lapangan Panasbumi 55 MW kePLTP Darajat Unit 1 (dimiliki dan dioperasikan oleh PT Indonesia Power/PLN)

AMDAL Stage II (Unit II dan Unit III):

AMDAL (ANDAL dan RKL/RPL) Proyek Pengembangan LapanganPanasbumi, Pembangunan PLTP Darajat Tahap II KapasitasTerpasang 2 x 70 MW , disetujui dengan No. 2845/SJ.T/1997, tanggal 31 Juli 1997

Suplemen RKl/RPL No. 660.1/426/I32004, BPLHD Jabar tanggal 10 Maret 2004

Mencakup kegiatan Lapangan dan PLTP Darajat Unit II dan Unit III


Environmental Sustainability

• Renewable energy - supports energy diversification policy

• Minimize land use impact through directional drilling technology

• Fluid reinjection for long term sustainability of the geothermal reservoir

• Environmental monitoring, management and reporting

• Environment Performance “Green Label”

• Operational Excellence Culture


Stakeholder Engagement

Public announcement

Environmental Impact Assessment approval

Clean Development Mechanism Project Proposal

Pendopo Kabupaten Garut, 19 November 2003

Attended by Stakeholders: Local and Central Government, Leaders, NGOs, Associations, University, Institution,

Darajat Unit III Project Presentation

Interactive Discussion

Record and documentation

Attached into Project Design Document (PDD)


Economy SustainabilityEmployment and training of unskilled labor force

Generation of at least 5 contracts extending to local Small Subcontractors (Keppres 80/2003, Clarification, Paragraph1 No.18) with value between Rp 300~500,000,000

CGI and the Contractor traktornyaconducts skill labor training: Carpenter, Mason, Pipeline, Scaffolding, rigging dll.

Community training and development program on “Setup Madu” (honey syrup), duck and sheep breeding

Infrastructure and social development -road upgrading, clean water distribution system, construction of dams, baby feeding andnutrition.

Provision for public facilities


Social Sustainability

Continuing stakeholder engagement

EPC contract

Develop Information centers at 3 Kecamatan

1. Manpower from 3 kecamatan, ~ 100 manpower, 2 months post-work training. Transparent Manpower hiring process through communication forum an informal institution

2. Public facilities

3. Accommodation for outside workers

4. Bid proposal Training


Technological Sustainability

Local/indigenous resource

Harness safe and proven resource

Vapor dominated and the most efficient geothermal power plant

Technology transfer

People development program and training

Community of practice

Associations


Operational Excellence (OE)

1. Operational Excellence (OE) - Systematic approach for managing

1. Health 4. Reliability

2. Environment 5. Efficiency

3. Safety

2. Focus on “People Get Home Safely Each Day’ and reducing incidents

3. More than 2,500,000 man-hours with No Loss Time Injury


4 Pillars: Education, Health, Social Economy, Infrastructure

Communication

Alignment with Local Government development program

Expanded CD & LBD’s scope

Community engagement

Capacity Building



Memperluas cakupan program CD-LBD keseluruh Kabupaten Garut.

Memperkenalkan Energi Panasbumi danproses pembangkitan serta Program kesadaran lingkungan kepada sekitar muridSD

Membangun fasilitas air bersih di DesaSukaresmi

Terus melanjutkan program Dana bergulirbagi ternak domba Garut dan itik

Bantuan korban bencana alam gempa bumi(makanan, pakaian, kesehatan & membangunfasilitas sarana sanitasi, gedung sekolah SD) paska gempa

Pembangunan peningkatan perbaikan kondisijalan di Desa Cihurang – Cihurip

Melakukan survey dan kajian untukmengembangkan rencana implementasipenyaluran air bersih di Pasirkiamis.

Aktivitas Utama CD-LBD


PengenalanPanasbumi dan Lingkungan


Penghargaan HES dalam Gambar

PROGRAM PENILAIAN PERINGKAT KINERJA

PERUSAHAAN (PROPER)

TAHUN 2005 : HIJAU


Pemantauan Emisi Gas Rumah KacaProyek MPB Darajat Unit III

(Greenhouse Gas Emission Monitoring)

29DNA Tech Team Presentation July 20, 2006 © Chevron 2006

Greenhouse gas emission monitoring and inventory since 2004

Employing Chevron’s GHG Emission Protocol and

Grounded on Chevron’s action plan in addressing global climate change concerns

Monthly emission inventory and quarterly reporting

Documented systems and procedures

Verifiable

Emission Monitoring Darajat Unit III


Chevron’s Climate Action Plan: Four-fold Strategy

Support flexibleand economicallysound policies andmechanisms that

protect theenvironment

Invest in R & D andimproved technology(CO2 capture/storage)

Reduce Greenhouse Gas Emissions and

Increase Energy Efficiency

Pursue business opportunities

(renewable energy,H2 infrastructure,Photovoltaic, etc.)

4-FoldAction Plan


Monitoring Methodology

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