Chevron Announces First Oil Production From Frade Field in Brazil

SAN RAMON, Calif. - Chevron Corporation (NYSE:CVX) announced today that its subsidiary Chevron Brasil Upstream Frade Ltda. has commenced crude oil production from the Frade Field, the company’s first operated deepwater development in Brazil.

The estimated $3 billion project, with continuing development drilling, is expected to achieve peak production of 90,000 barrels of crude oil and natural gas liquids per day in 2011.

“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’s executive vice president for Upstream and Gas.

Chevron has a 51.74 percent operating interest in the Frade Field, which contains an estimated 200 million to 300 million barrels of recoverable oil. The field is situated in the Campos Basin in approximately 3,700 feet (1,128 m) of water, approximately 230 miles (370 km) northeast of Rio de Janeiro. Frade is a subsea development with wells tied back to a floating production, storage and offloading vessel. Crude oil production is planned to be exported to world markets, and natural gas production is expected to be provided for domestic use in Brazil.

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

Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production Co., 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 Petrob