Chevron submits AFE for Pre-FEED of IDD project
Thursday, July 20 2017 - 09:46 AM WIB
Chevron has proposed to the upstream authority SKK Migas budget plan (authorization for expenditure/AFE) to carry out Pre-Front End Engineering Design (Pre-FEED) for second stage of the IDD project, covering Gehem and Gendalo fields, in East Kalimantan.
Wisnu Tahar, Head of Program and Communications Division at SKK Migas, said on Thursday that the proposal was submitted on July 4, and is currently being evaluated by the authority.
He said that one of the points in the proposal is for Chevron to carry out a joint study with ENI to utilize the latter?s floating production unit (FPU) at the Jangkrik project in East Kalimantan.
He added that the plan forms part of new scheme to help improve the economic feasibility of the IDD project.
As has been previously reported, ENI has proposed for the utilization of the Jangkrik FPU to also process gas from the Gehem and Gendalo fields.
The Jangkrik FPU, operated by ENI, started gas production in May of this year, processing gas from the Jangkrik and Jangkrik North East fields in Muara Bakau block, East Kalimantan, also operated by ENI.
Minister of Energy and Mineral Resources Ignasius Jonan said in June that the capacity of the Jangkrik FPU can be expanded beyond its designed capacity of 450 mmscfd to 600 mmscfd with additional gas output from nearby fields from Merakes field in the East Sepinggan block, also operated by ENI.
He apparently supported the proposal for Chevron to also utilize the Jangkrik FPU. ?So Chevron will no longer need to make additional huge investment because the facility (Jangkrik FPU) can be jointly utilized, so that there will be no duplication and the time (for completion of the IDD project) can be faster,? he explained. With additional gas output from the IDD project, the production capacity of the Jangkrik FPU can be further expanded to 900 mmscfd in 2022, which accounts for about 13 percent of current national gas production of 7,100 mmscfd, he said.
Chevron Senior Vice President for Government and Public Affairs, Yanto Sianipar said on May 16 that the company?s second stage IDD project was under review process in the wake of new opportunities that would make the project economically feasible.
?The first stage, the Bangka field (development project) has been running and producing around 100 mmscfd (of gas). For the second stage, it is still in the study process because there are new opportunities to make the project economical amid the current oil price condition ? The study is expected to be completed soon,? said Yanto, but did not explain what the new opportunities are, and when the study will be completed.
Editing by Reiner Simanjuntak