Chevron won?t use Jangkrik FPU in IDD project
Friday, July 28 2017 - 01:20 AM WIB
Petromindo|Lucky
US oil and gas firm Chevron will not use the Jangkrik floating production unit (FPU) of Italy?s Eni in processing gas and condensates from the Gendalo and Gehem fields at its Indonesia Deepwater Development (IDD) project.
Deputy Minister of Energy and Mineral Resources Arcandra Tahar said on Thursday that Chevron has submitted the plan of development (POD) for the two gas fields, which includes the development of own production facility. ?It (Chevron) will built own facility as initially planned,? he said.
The Gendalo and Gehem fields, targeted to start first gas production in 2022, form part of the second phase development of the IDD project. The first phase, which is the Bangka field has started production since August 2016.
Minister of Energy and Mineral Resources Ignasius Jonan has earlier proposed Chevron to utilize the Jangkrik FPU, which has recently started processing gas from the Jangkrik and North Jangkrik field in Eni-operated Muara Bakau block, East Kalimantan, rather than developing own facility to help improve the economic viability of the IDD project. Jonan made the proposal as Eni also plans to expand the capacity of the Jangkrik FPU from the current 450 mmscfd to 600 mmscfd as it will also process gas from nearby Merakes field in Sepinggan block, also operated by the Italian firm.
During a meeting Wednesday in Houston with Jonan, Chevron expressed concern over the future load capacity of the Jangkrik FPU. Chevron said that the FPU will be in full-capacity by 2029 when it also processes gas from Merakes field, and thus will not be able to accommodate gas and condensates from the Gendalo and Gehem fields.
The Gehem field is projected to produce 420 mmscfd of gas, while Gendalo 700 mmscfd of gas, in addition to around 50,000 bpd of condensates, according to the ministry.
Jonan said he would ask upstream oil and gas authority SKK Migas to discuss this problem with Chevron and Eni.
Editing by Reiner Simanjuntak