Chevron's Sadewa gas field reserves fall to 60 BCF

Natural gas reserves in U.S. oil giant Chevron's Sadewa field from East Kalimantan PSC are expected to be left 10 percent or only around 50-60 billion cubic feet (BCF) from an earlier estimate of 500-600 BCF, a senior government official said on Monday.

Achmad Lutfi, deputy chief of the upstream oil and gas regulator BPMIGAS, said the government wanted Chevron to review its development plan for the block to make it more efficient.

"We want Chevron to review its plan of development (PoD) because if Chevron only develops the Sadewa field, which has low reserves, it will not be efficient," Lutfi said

Production from the area must be started together with the deep sea projects like Gehem, Ranggas and Gendalo gas fields, which is located nearby, Lutfi added.

Gehem and Gendalo gas fields lie in Ganal PSC in Makassar Strait, meanwhile Ranggas gas field lie in Rapak PSC.

Earlier, Lutfi told Petromindo.Com that under the PoD submitted by Chevron, Sadewa would be able to produce 120MMCFD of gas to supply Bontang LNG plant. The PoD plans for first production from Sadewa in 2010, he said.

Sadewa is part of a series of PoDs submitted by Chevron to BPMIGAS in an effort to speed up development of its East Kalimantan oil and gas portfolio. (godang)