Chevron requests for postponement of IDD project
Saturday, October 11 2014 - 04:38 AM WIB
Director of Upstream Oil and Gas at the ministry, Naryanto Wagimin was quoted by the media as saying that Chevron has sent a letter to Chairul Tanjung, the acting Minister of Energy and Mineral Resources, asking for the postponement due to changes in the economic value of the project.
?They said there is additional reserve. The economic value of the project, therefore, is higher,? Naryanto said.
The IDD project comprises of four gas blocks including Ganal, Rapak, Makassar Strait, and Muara Bakau, covering five fields including Bangka, Gehem, Gendalo, Maha, and Gandang. The blocks of Ganal, Rapak, and Makassar Strait are operated by Chevron, while the Muara Bakau block by Eni Spa. According to an earlier estimate, the IDD project was supposed to produce 1,270 mmscfd of gas.
The Bangka field was expected to be operational in 2016 to be followed by Gehem and Gendalo in 2018.
Chevron Indonesia Corporate Communications Manager Donny Indrawan told Petromindo.com in July that it has obtained all government approvals to start drilling program for the Bangka gas field. He said at the time that the drilling program was scheduled for August of this year.
Under a revised plan of development (POD) proposed by Chevron, investment for the IDD project has been projected to jump to US$12 billion.
Most of the IDD project gas output will be exported, and at least 25 percent would be for domestic market. (*)