Chevron?s deepwater project to start operation in 2015

Upstream oil and gas regulator BPMIGAS expects gas exploration project carried out by PT Chevron Indonesia Company in the deep sea of Makassar Strait, East Kalimantan, would start production in early 2015, with investment seen at $7 billion, Bisnis Indonesia reported, citing Deputy of Operation at BPMIGAS Rudi Rubiandini.

Chevron has obtained approval on the plan of development (PoD) for the project in 2008. It had also secured approval from the Environment Ministry on the waste water management in August this year.

Earlier, BPMIGAS said the project would begin operation in third quarter of 2014.

The deepwater project comprises of a number fields, namely Bangka, Gehem, Maha, Gandang and Gendalo fields. Chevron will build two separate hub developments ? Gendalo Hub and Gehem Hub, each with its own floating production unit (FPU), subsea drill centers, export gas and condensate pipelines and an onshore receiving facility.

Rudi said that gas production capacity for Bangka field was expected to reach 140 MMSCFD without condensate in the first quarter of 2015 while the capacity at Gendalo Hub was hoped to reach 700 MMSCFD of gas and 20,000 BOPD of oil in the fourth quarter of 2016.

Meanwhile, production capacity at Gehem Hub was seen at 420 MMSCFD of gas and 27,000 BOPD of oil in the second quarter of 2017. The peak production would be at 924 MMSCFD, he added.

Rudi revealed that out of $7 billion investment, about $2.2 billion would be used for production facilities and the remaining $4.8 billion would be used for drilling activities.

Previously, Vice President of Public Affair at Chevron Yanto Sianipar said the long process in getting approval for PoD has delayed the front end engineering design (FEED) process. However, the company expected the FEED to conclude in mid-2012.

The gas would be distributed to meet domestic demand and processed into liquefied natural gas (LNG) in Bontang refinery, East Kalimantan , and also to be exported. The maximum production was expected to reach 1.1 BCF and 31,000 barrels of condensate per day. (*)