Pertamina in talks to buy Chevron?s deepwater project

State-owned oil, gas firm PT Pertamina is in talks with U.S oil giant firm Chevron Corp. to buy a 10 percent stake each in Ganal-Rapak deepwater gas project, offshore East Kalimantan.

Gunung Sardjono, Pertamina?s Planning Deputy Director said on Thursday that Pertamina has submitted request to Ministry of Energy and Mineral Resources to acquire 10 percent stake in both blocks under Indonesian Participation scheme. "Pertamina has been in talks with Chevron, who welcomes the plan," he said.

Under the Indonesian Participation regulation, Indonesian-owned company has right to acquire 10 percent stake in an oil, gas block after the first plan of development has been approved by the government.

Ganal and Rapak PSCs are part Chevron?s deepwater project, which will be the first deepwater subsea mega project in Indonesia. The project will require development capital of US$7-8.5 billion and first gas is estimated 6.5-8 years from PoD approval. PoD for the project was approved by the government last year.

The project would extract 2-4TCF of gas in the form of development of 5 integrated gas fields in Chevron?s 4 PSCs namely Muara Bakau PSC, Makassar Strait PSC, Ganal PSC and Rapak PSC. (godang)

Gas from the fields will boost supply to Bontang LNG plant. (godang)