Chevron eyeing Papua deepwater blocks
Monday, May 28 2007 - 02:21 AM WIB
The source, who declined to be named, said that under the permit, Chevron would conduct study on the frontier blocks starting next year and if proven prospective, would be given first priority to operate the blocks through ” Direct Offer Tender” mechanism.
The source did not give further detail.
Chevron declined to comment on the matter. “" It is Chevron's policy that we don't discuss details of our business activities,” Spokesperson of Indonesian unit Santi Manuhutu said in an e-mailed statement Friday.
Despite being the country’s top crude producer from Central Sumatra operations, Chevron is struggling to maintain the level of its Indonesian operations. The company’s aging Central Sumatra oilfields are operating with declining mode due to dwindling resreves.
The company’s East Kalimantan gas operations are also on declining mode and could not meet its production commitment to Bontang LNG plant due to reserves problem and failure of West Seno PSC Indonesia’s first deepwater oil, gas field project, to deliver targeted production.
Its plan to develop its deepwater portfolio offshore East Kalimantan are being cautiously scrutinized by BPMIGAS. “BPMIGAS will be carefully evaluate Chevron’s deepwater development proposals as we do not want West Seno case happen again in the future,” BPMIGAS Deputy Chairman in charge of Planning, Achmad Luthfi said in recent interview.
Chevron's WestSeno oil, gas field, which was built at huge costs, was considered by many as failure as it is producing oil and gas far below initially targeted level.
The company is also planning to discard its 50 percent interest in Kisaran onshore block in North Sumatra after recent drilling conducted in the block showed unsatisfactory results for Chevron.(godang)