Prospect of IDD project hinges on extension of Makassar Strait PSC
Thursday, April 17 2014 - 04:03 AM WIB
The prospect of Chevron Indonesia Company?s (CICo) Indonesia Deep Water Development (IDD) project, offshore East Kalimantan, hinges on the government approval of the company?s request for an extension of its contract over the Makassar Strait block, according to an official at the upstream oil and gas regulatory SKK Migas.
SKK Migas Secretary General Gde Pradnyana told Petromindo.com on Wednesday that CICo has requested for its existing Makassar Strait block contract, which expires on January 26, 2020, to be extended for another eight years so that its expiry will be more or less in line with the expiry of the two other blocks included in the IDD project.
The two other blocks are Gamal and Rapak, the contracts of which respectively will expire on Feb 24, 2028 and on Dec 4, 2027. Meanwhile, the contract of the other block which is also part of the IDD project, Muara Bakau will expire on Dec 30, 2032.
Gde said that CICo needs certainty over its request for the extension of the Makassar Strait block because of the huge investment of the IDD project, estimated at US$7 billion.
He said that CICo put the four blocks under the same development via the IDD project to make it more economical.
The IDD project is targeted to come on stream in 2016 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.
Editing by Reiner Simanjuntak