Ministry disappointed over lack of progress in IDD project

The Ministry of Energy and Mineral Resources is disappointed over the lack of progress in the second stage development of the Indonesia Deepwater Development (IDD) project run by Chevron, Kontan reported on Friday.

The paper quoted Deputy Minister of Energy and Mineral Resources as saying that the ministry has helped Chevron in resolving various issues including tax to help accelerate the development of the Gendalo and Gehem gas fields in the IDD project, but there has been not much progress in the project.

?We have helped a lot, but their (Chevron?s) response has been disappointing, that?s why we?ll continue to seek ways (to help accelerate the project),? Arcandra said.

Chevron is planning to develop the Gendalo and Gehem fields after having started production at the Bangka field of the IDD project (first stage), which currently runs a production rate of 100 mmscfd of gas.

Chevron proposed in early July of this year 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.

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 Ministry of Energy and Mineral Resources. (*)