IDD investment revised downward to below $10b
Friday, September 25 2015 - 04:20 PM WIB
Investment for the Indonesian Deepwater Development (IDD) project in Makassar Strait has been revised downward to below US$10 billion
?Indications reveal it is below $10 billion. There aren?t definitive figures yet,? SKK Migas? Deputy of Operation Control Muliawan said, noting that the revised Plan of Development (POD) for the project is being discussed by operator Chevron Indonesia Company (CICO) along with its partners.
The first PoD for the project was approved by the Ministry of Energy and Mineral Resources back in 2008, in which Chevron set the investment for the project at $6.9 billion. Chevron however later proposed to revise the PoD, raising the investment to $12 billion, arguing that the investment for the project would be exponentially higher as a result of rising costs of development. However, the revised PoD has never been approved by the government.
Muliawan did not provide the reasons behind the new revision. But, EPC contractors have cut their costs following the drop in the oil price.
The development of the project has yet to start. It was initially scheduled for completion in 2018 but the completion has been postponed to 2020.
Editing by Johannes Simbolon