Chevron reviews IDD project amid new opportunities

By Febry Silaban

Chevron said that its second stage Indonesia Deepwater Development (IDD) project in East Kalimantan is currently under review process amid new opportunities that would make the project economically feasible.

?The first stage, the Bangka field (development project) has been running and producing around 100 mmscfd (of gas). For the second stage, it is still in the study process because there are new opportunities to make the project economical amid the current oil price condition ? The study is expected to be completed soon,? said Yanto Sianipar, Senior Vice President for Government and Public Affairs at Chevron, on Tuesday.

Yanto, however, did not explain what the new opportunities are, and when the study will be completed. ?It is still in the process. I can?t provide the milestone, it?s confidential,? he said.

He said that the future development of the IDD project will depend on the results of the study. ?Regarding contract extension, capital (requirement), production, engineering design, those will be ascertained after the study has been completed. We can?t refer to past study in 2008 (at a time when the first POD/plan of development was approved). From the new study, we?ll revised the POD (for the second stage of the IDD project,? Yanto explained.

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. Ganal, Rapak, and Makassar Strait are operated by Chevron, while Muara Bakau by Eni Spa. According to one estimate, the IDD project is able to produce 1,270 mmscfd of gas at peak production.

Editing by Reiner Simanjuntak