AHB - Sharing Prasetya Mulya 23 Sept 14

7/25/2019 AHB - Sharing Prasetya Mulya 23 Sept 14

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2014 Chevron

Career in Multinational Energy Company:

Converting Challenge intoOpportunity

Abdul Hamid Batubara

President Commissioners

PT. Chevron Pacific Indonesia

Prasetya Mulya, Jakarta

September 23, 2014


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2014 Chevron

Agenda

1. My Career Journey in theEnergy Company

2. Insight - Why people want towork for energy company?

3. Peoples perception to themultinational energy company inIndonesia?


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My Career Journey in ChevronFrom Programmer to President Director

President DirectorSVP Sumatera Operations

SVP Business Services

VP Finance VP General Affairs Manager Financial Info & Analysis Manager Corp. Planning & Budget Supt. Infosys Planning & Development


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2014 Chevron 2014 Chevron

Chevron Worldwide

60,000 employees

2.597 million BOE daily netproduction in 2013 Exploration & ProductionRefining

Chemicals

One of theworld largestintegratedenergy

companies


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2014 Chevron

The Chevron Way:Getting results the right way


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Our Vision: The Chevron WayPeople is our vision

VisionTo be the global

energycompany most

admired for its

people,

partnership andperformance

People:

Caring and dynamic leaders who areempowered, accountable, and demonstrate

high standard of ethics and integrity

Well trained and skilled workforce who

meet international performance standards


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The Chevron Way:The Seven Values and What They Mean to Us

ValuesOur companys

foundation is

built on our

values

Integrity

Trust

Diversity Ingenuity

Partnership

Protecting People and the

Environment

High Performance


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Think Globally, Act Locally: Inspiring Leader

"It's amazing what you can accomplish if youdo not care who gets the credit Julius Tahija

Pak Tahijas business ethic is exactly

similar to safety principle in airline industry -Emirsyah Satar

To Pak Tahija, the business ethicprinciple cannot be compromized" -

Gunarni Soeworo

At the end of the day, it is integrity andreputation that save us -

Baihaki Hakim



Chevron IndoAsia Business Unit (IBU)

PT. Chevron Pacific IndonesiaChevron Indonesia Company

South NatunaSea Block B

Tiwi Field

Mak-Ban Field

Chevron Geothermal Salak

ChevronGeothermal Indonesia

Oil & Gas Exploration and Production

Philippine Geothermal Production Company, Inc..

Chevron Malampaya LLC

Chevron Makassar, LtdPT. Chevron GeothermalSuoh-Sekincau

Produce about 40% ofIndonesias crude oil

production

Generate over 50% of

the countrys

geothermal

production

Chevron Kalinga, Ltd.

Geothermal


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Chevrons Contribution to Energy Security in Indonesia

Active in Indonesia for 90 years

Largest oil producer, supplying~40% of the countrys crude oil

Continuous implementation oftechnology innovation

Duri Field, worlds largestthermal EOR operation

Minas Surfactant Pilot project

Ultra-deepwater gasdevelopment

Largest geothermal producer(647 MW of installed capacity)

Continuous improvement inenergy efficiency


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Improving Organizational Capability

Horizons Program for freshgraduate hires

Pathways Program for

experienced employees

Career DevelopmentAssignment (CDA)

International Assignments

Employee Self DevelopmentProgram (ESDP)



University Partnership Program(UPP) with ITB and UGM focusedon petrotech skill development

Graduate Fellowship Program

Undergraduate Student Lab

Improvement Distance Learning

Internship coupled with hiringprogram

Guest Lecture series

Curriculum Improvement

Geology field trip/school

Lecture assistance: internationalconference, short-term courses

Preparing the Best Seeds


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Chevrons Corporate Responsibility

Improving access to BasicHuman Needs (Health)

Enabling Education &Training Opportunities

Promoting SustainableLivelihoods

Protecting the Environment

Rehabilitating Livelihood inDisaster-stricken areas


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Why Do People Want to Work for Energy Company?

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Global Energy DemandsPeople Needs Energy. Energy Supports People lives.

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Source: EIA/DOE International Energy Outlook 2013

Quadrillion Btu


1 Quad Btu (1015 Btu) = approx.172 BOE


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National Energy Supply & Demand

Energy demand in 2010 is 3.3 million boepd and will increase to 7.7 millionboepd in 2025, in which oil and gas will constitute for 47%

2025 oil/gas supply and demand gap could reach, at least 2 millions boepd Three times current exploration activity level needed if conventional oil and gas

is to fill 50% of the 2025 supply demand gap


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National Energy Consumption

Indonesia is a net crude oilimporter country since 2004.

Oil Net importer: price fluctuationsaffects the State Budget (APBN).

Indonesia's total primary energy

consumption grew by 44% between2002 and 2012.

The petroleum share, althoughdecreasing, continues to accountfor the highest portion ofIndonesia's energy mix at 36% in

2012.


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People Perception to the Multinational EnergyCompany

Perception Reality

Oil in Indonesia is RICH Indonesia Proven Oil Reserves is only3 billion BOE (1% of Venezuela, 300billion BOE)

Foreign company is taking most ofIndonesias oil and gas for their

benefit

Indonesia is taking the 85% net profitwithout any risk.

The risk of failure is borne by theinvestors.Once succeed, investors need to waitfor 7-10 years for the Break EvenPoint (BEP).

Foreign company is dominated byexpatriates

SKKMigas: 93% of oil and gasworkers are Indonesian.Most of the leadership team are alsoIndonesian.


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Energy Industry: High Risk High Reward

Structured Approach

Thorough Planning &Analysis

Excellent Execution

High Capital

High Technology

Long Process


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2014 Chevron** source: OPEC Annual Statistical Bulletin, 2012

World Oil ProducersIndonesia #29

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Energy Industry: High Risk High Reward

Deepwater Exploration Failure Costs US $ 1,9 Billion

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On June 11, 2013Deputy of PlanningSKKMIGAS stated that

12 production sharingcontractor suffer lossesof dry hole deepwaterexploration drilling.

Total estimated loss isUS$ 1.9 billion (Rp 19trillion) in 2009-2013


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Interventions to Develop Effective Future Leaders

Transfer of technology Experience is the best teacher


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FACTs:

Cheap energy is long gone, oil production is decreased.Indonesia energy needs in 2019 is about 6,19 millionBOPD, our energy supply only 6,04 million BOPD. If we donothing, we will be a net energy importer by 2019

Explore the potential areas in the eastern part ofIndonesia, fact: almost 50% of Indonesia Basins (29 of 60) arenot yet explored and produced.

The needs to develop other sources of energy, fact: Indonesiahas more opportunity to increase the conventional and non-

conventional resource production (CBM

400 TCF, Shalegas, renewable energy- geothermal, etc).

Energy Industry is high risk high capital. Energy investor isrequired to support Indonesia energy needs. Fact: favorableinvestment climate is required.

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Energy Security through Successful DevelopmentsRequires

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Financially strong and experiencedcompanies with superior technology

A commitment to safety and environmentalstewardship

Partnerships with hostcountries, customers, industry and local

communities

Government commitment is essential todevelop the right policies


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Thank You

Q & A

Thank You

AHB - Sharing Prasetya Mulya 23 Sept 14

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