IDD project prioritized for domestic market: Evita

By Godang Sitompul

The Energy and Mineral Resources Ministry said on Friday that gas from the Indonesia Deepwater Development (IDD) project in Makassar Strait, offshore East Kalimantan, operated by Chevron Corp., will be prioritized for domestic market, although no decision has been taken yet on the allocation.

?The exact allocation has not yet been decided, but it?s certainly prioritized for domestic,? Evita Legowo, Director General of Oil and Gas at the Ministry, told petromindo.com.

The IDD gas project is in water depths of approximately 6,000 feet, which will include two separate hub developments, each with its own floating production unit (FPU), subsea drill centers, export gas and condensate pipelines and an onshore receiving facility. It is scheduled for commercial production by January 2015.

An industry source told petromindo.com that IDD will have to allocate 25 percent of its gas production for domestic and export the remaining 75 percent.

?For domestic, one of major buyers is PT Pupuk Kaltim which is currently developing its fifth production unit. As for the export market, interested buyers include South Korea,? said the source.

Editing by Dadan Wijaksana