Chevron signs HoA with S. Korean buyer for IDD gas

By Godang Sitompul

Upstream authority SKK Migas said that Chevron Indonesia Company has signed a head of agreement (HoA) with a South Korean firm for the latter to purchase gas from the Indonesia Deepwater Development (IDD) project in East Kalimantan.

Head of the Gas Commercialization Division at SKK Migas, Popi Ahmad Nafis told Petromindo.com Friday that the regulator is also in the process of approving Chevron?s request to sell the IDD gas to Japan?s TEPCO.

SKK Migas expected Chevron?s IDD project to be on stream in 2017-2018, and that the gas from the project would be processed into LNG at the Bontang plant. Another SKK official, however earlier said that the project was expected to be on stream in April of 2015 for the Bangka field, and May 2017 for the Grehem field.

?This means that there?s no need for floating LNG or FSRU. But the problem is that Pertamina (state oil and gas firm) as the operator of the Bontang refinery demanded for a fee, the rate of which has yet to be approved by the government,? Popi explained.

Editing by Reiner Simanjuntak