CICo requests for extension of contracts in IDD project
Tuesday, October 29 2013 - 04:32 AM WIB
Chevron Indonesia Company (CICo) has requested to the government of Indonesia for an extension of the four production sharing contracts within the Indonesia Deep Water Development (IDD) project, offshore East Kalimantan, in order to make the project more economical, according to a source.
The source told Petromindo.com Tuesday that the company was waiting for approval from Ministry of Energy and Mineral Resources, which is expected to make a decision following the finalization of the plan of development (POD) of the IDD project. The POD is currently being reviewed at the upstream oil and gas authority SKK Migas.
CICo develops the IDD project via four PSCs including Ganal, Rapak, Makassar Strait and Muara Bakau blocks, which respectively will expire February 24, 2028; December 4, 2027; January 26,2020; and December 30, 2032.
The IDD project is projected to come on stream in 2016, according to the source, with first gas production coming from the Bangka field in March. Meanwhile, first gas production from the Gendalo field is projected in January 2018, to be followed with first gas production from the Gehem field in February 2018.
The source added that CICo is currently in negotiation with potential buyers in South Korea and Japan for the gas production from the IDD project. The company is also in discussion with the Ministry of Finance and state-owned oil and gas firm PT Pertamina for the utilization of the Bontang asset.
According to the source, CICo is also currently engaged in negotiations with PT Pertamina and PT Mandiri Migas Pratama for acquiring participating interest at the IDD project.
The Directorate General of Oil and Gas has provided a permit on August 30 to open the data room for four months, followed with confidentiality agreement between the three companies.
Editing by Reiner Simanjuntak