Chevron starts study for IDD second phase project

Petromindo|Khalsa

Chevron signed on Wednesday contracts with PT Worley Parsons Indonesia and PT Tripatra Engineering to carry out engineering and design studies in relation to the planned development of Gendalo-Gehem field, the second phase development of the Indonesia Deepwater Development (IDD) project in Kutei Basin, East Kalimantan Province.

?The study will explore alternatives that could significantly reduce the capital investment requirement and increase (commercial) viability of the project,? said Chuck Taylor, Managing Director Chevron IndoAsia Business Unit in a statement issued following the signing of the contracts aboard the West Seno floating production unit, which processes gas from the IDD?s Bangka field.

The signing of the two contracts was witnessed by upstream oil and gas authority SKK Migas Chief Amien Sunaryadi. Worley Parson?s contract is for the subsea scope, while Tripatra for the production facility scope.

Chevron said the contracts are expected to be completed in 2018. The project is estimated to contain potentially recoverable natural gas resources of approximately 3 trillion cubic feet.

The first phase of the IDD project, the Bangka field project, has started production since August of 2016 with installed capacity of 110 million cubic feet of gas, and 4,000 barrels of condensates per day.

Chevron said that to date, six cargoes of LNG produced from the Bangka field have been delivered from the Bontang LNG Terminal as part of a five-year Bangka Project LNG sale and purchase agreement signed with state-owned oil and gas firm PT Pertamina.

Chevron as the operator holds a 63 percent interest in the IDD project. The remaining shares are held by Eni, Tip Top, PHE, and the Muara Bakau partners.

Editing by Reiner Simanjuntak