Chevron raises capacity concern over proposed utilization of Jangkrik FPU
Thursday, July 27 2017 - 05:53 AM WIB
US oil and gas firm Chevron raised its concern during a meeting with visiting Minister of Energy and Mineral Resources Ignasius Jonan on Wednesday over a proposed utilization of Jangkrik FPU to process future gas production from Gendalo and Gehem fields at its Indonesia Deepwater Development (IDD) project.
The ministry said in a statement that during the meeting, Chevron expressed worries that the Jangkrik FPU in East Kalimantan, operated by Italian firm Eni SpA, will be in full-capacity by 2029 and could not process gas from the Gendalo and Gehem fields.
The Jangkrik FPU, which started production in May, processing gas from the Jangkrik and North Jangkrik fields in Muara Bakau block, East Kalimantan, also operated by Eni, currently has capacity of 450 mmscfd. Jonan said in June that the capacity of the Jangkrik FPU will be expanded to 600 mmscfd in the future to process gas from the nearby Merakes field in East Sepinggan block, also operated by Eni. He has also proposed for Chevron to utilize the FPU to process gas from the Gendalo and Gehem fields so that the company won?t need to build its own processing facility which in turn would help improve the economic viability of the IDD project.
?In relation to this (proposal), Chevron said that if (gas) production from Eni?s Merakes also enters Jangkrik, then in 2029 the Jangkrik FPU will be in full capacity and will not be able to accommodate gas from Gendalo-Gehem,? the ministry said in the statement.
The Gehem and Gendalo fields project are projected to start production in 2022, while the Bangka field, which is the first phase of the IDD project, has started production since August 2016.
The Gehem field is projected to produce 420 mmscfd of gas, while Gendalo 700 mmscfd of gas, in addition to around 50,000 bpd of condensates. ?Meanwhile, the current capacity of Jangkrik FPU is 450 mmscfd, and is expected to be expanded to 800 mmscfd,? the statement said.
In responding to the concern, Jonan said he will ask upstream oil and gas authority SKK Migas to once again discuss it with Chevron and Eni.
Editing by Reiner Simanjuntak