Chevron?s IDD project encounters bureaucracy hurdle

By Godang Sitompul

Completion of the key final investment decision (FID) for Chevron Indonesia Company?s Indonesia Deep Water Development (IDD) project in the Makassar Strait in East Kalimantan has encountered bureaucracy hurdle as the government has yet to approve the necessary plan of development (POD).

?For the IDD project, Chevron is hoping for government support in terms of approval of the EPC contract and others, which forms the basis for accelerating the investment schedule. We?ll rush to complete the FID before the end of this year,? Chevron Indonesia Spokesman Yanto Sianipar told Petromindo.com Tuesday. ?We?re not in the critical path.?

The upstream oil and gas authority SKK Migas said in June, as reported by this portal, that the FID for the project was expected to be finalized by September of this year, so that Chevron can start investment and construction process of the project, which is projected to come on stream by 2016.

Yanto said that despite the delay in the FID, Chevron remains hopeful that the IDD project can still be completed on schedule as the company would accelerate works in other areas.

Meanwhile, SKK Migas Head of Public Relations Elan Biantoro was quoted by Bisnis Indonesia daily Tuesday as saying that the Ministry of Energy and Mineral Resources has yet to approve the POD as there are certain cost assumptions that need to be adjusted to make the project economical.

Editing by Reiner Simanjuntak