Chevron revises POD of IDD project

By Godang Sitompul

Chevron Indonesia Company has revised the plan of development (POD) for its Indonesia Deepwater Development (IDD) project in the Makassar Strait, East Kalimantan.

Under the revised POD, Chevron increased the investment cost of the project from US$6 billion to $12 billion. ?In 2008, Chevron put the IDD project cost at $6 billion. But in line with rising prices of the materials used in the project, Chevron has been forced to revise the price to $12 billion,? a source told Petromindo.com on Wednesday.

The source added that the revised POD has been submitted to the Minister of Energy and Mineral Resources Jero Wacik to get approval. But to date there has been no approval yet.

?The issue of the Chevron IDD will be brought up at the limited Cabinet meeting, which will be discussed by the President and Vice President,? the source said.

Chevron Indonesia Spokesman Yanto Sianipar declined to provide comment. ?We cannot comment on the investment. Chevron is working with Government of Indonesia to progress the approvals for a FID on the IDD Project. A final investment decision for IDD Project is expected in 2014,? he said.

Chevron has been seeking for immediate government approval of the POD to allow it to complete the final investment decision (FID) for the IDD project, so that construction process can start immediately, in the hope that the project can be on stream in 2016.

Meanwhile, Head of the upstream oil and gas authority SKK Migas, Y. Widanarko told Petromindo.com that the Minister of Energy and Mineral Resources through the Director General of Oil and Gas holds the authority in approving the POD.

Editing by Reiner Simanjuntak