Chevron not asking for extension of East Kalimantan PSC

Chevron Indonesia Company has decided not to ask for extension for East Kalimantan PSC which expires on Oct. 25, 2018.

?Chevron through subsidiary Chevron Indonesia Company (CICO) has been operating East Kalimantan (EKAL) PSC and supplying gas sustainably to the Bontang LNG plant and the Balikpapan refinery. CICO won?t ask for extension for EKAL PSC and will return the asset to the government of Indonesia on Oct. 24, 2018,? Chevron IndoAsia Business Unit?s Managing Director Chuck Taylor said in a statement on Tuesday.

?The decision will not affect our commitment to continuing our 90-year partnership in Indonesia and implementing strategic projects such as the Indonesian Deepwater Development (IDD) project,? he said. We are proud of our strong partnership with the Indonesian people and government and is committed to a continued support for Indonesia to develop its energy resources in a safe, efficient and reliable manner,? he said.

According to Yanto Sianipar, Senior Vice President Strategic Business Support at Chevron Pacific Indonesia, East Kalimantan PSC is an old block, now producing 60-70 mmscfd of gas and around 20,000 bpd of oil.

Based on the 2016 Work Program and Budget (WP&B), the block will produce 14,470 bpd of oil this year.

Chevron also controlled several other blocks in East Kalimantan, including Ganal PSC, Rapak PSC and Makassar Strait PSC, which are all parts of the IDD project. Another block included in the IDD project is Muara Bakau PSC which is controlled Italian firm Eni Spa.

Editing by Johannes Simbolon