Chevron Q1 2009 Earnings Call Transcript

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2009-05-01 12:27:22.0

Tags: Writeoff, Investment Decision, Call Transcript, Earnings, Chevron Corp., Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Mark Gilman with Benchmark.

Mark Gilman - The Benchmark Company

Pat and Jim good morning to you. I wanted to talk a little bit about the timing on the ramp-up on Frade and Tombua Landana. Any particular reason that the plateau won't be achieved until 2011, with the second half 2009 start up. Is this a development drilling and rig constraint or something else?

Patricia Yarrington

No, I think it's really just the scheduling around when the producing wells are planned for startup Mark. It's a scheduled plan.

Mark Gilman - The Benchmark Company

There's been no changes in that Pat?

Patricia Yarrington

There's been no changes in that. We've been very consistent on those schedules for several months.

Mark Gilman - The Benchmark Company

Okay. If I can just add one other follow-up. The $100 million after tax charges the write-offs in U.S. upstream, could you talk just a little bit about what that is more specifically? And I'm assuming -- please correct me if I'm wrong that it's not included in the report of exploratory expense in the quarter?

James Aleveras

Mark, it's a combination of things that are primarily exploratory in nature but some of them runs through DD&A. They have to do with write-offs and write downs of exploratory wells, as well as things that are related to that, that we went through DD&A.

Mark Gilman - The Benchmark Company

Jim, that's not usually clear.

James Aleveras

Well. I can't be a whole lot more clear than that Mark. That what we have is fairly straight forward here. This is the sort of thing that we see regularly. We have increased dry hole cost quarter-over-quarter. We had things like an unproved property write-down, which runs through the DD&A rate and it's just a number of small items.

Mark Gilman - The Benchmark Company

Okay. We will take it offline. Thanks folks.

Operator

Our next question comes from Jason Gammel with Macquarie.

Jason Gammel - Macquarie Research Equities

Thank you, good morning everyone I had a couple of questions on Western Australian Gas. The first is with the Gorgon environmental approval process now essentially complete is there anything that stands in the way of final investment decision other the final partner approval and would you expect to be able to reach the final investment decision this year?

Patricia Yarrington

 

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