JAKARTA (RambuEnergy.com) – Chevron, a major global company, said on Friday (13/4) that the conceptual and Pre-Front End Engineering and Design studies on the Indonesia Deepwater Development (IDD) project in Makassar Strait is progressing well and reiterated the company’s commitment to carry on the project.
The conceptual and Pre-FEED of the IDD project began in December 2017. In the month, the company awarded two contracts for IDD feasibility engineering and design work to PT Worley Parsons Indonesia for subsea scope and PT Tripatra Engineering for production facility scope. The company said it will explore alternatives which can significantly reduce capital requirements and improve project viability.
The conceptual and Pre-FEED contracts are expected to be completed this year. The project is estimated to contain potentially recoverable natural gas resources of approximately 3 trillion cubic feet.
Optimization of development concepts and the basis of design simplifications are yielding significant indicative development capital and operating cost reductions.
Managing Director Chevron IndoAsia Business Unit Chuck Taylor said, “We are working to complete these studies as soon as possible and will continue to work with the Government of Indonesia to advance this National Strategic Project.”
Chevron (operator) has a 63% interest in the IDD Project (aggregated), with other joint venture participants being Eni, Tip Top, PHE, and Muara Bakau Parties.
Chevron said it remains committed to supporting Indonesia in developing its energy resources, both onshore and offshore. We have a track record of successful partnership with Indonesia, driving economic growth and supporting local communities in areas where we operate over decades.
The first stage of the Indonesia Deepwater Development (IDD) Project, the Bangka development, began production in August 2016 and has resulted in the successful delivery of eight cargoes of LNG from the Bontang LNG terminal.
The second stage of the IDD Project, the Gendalo-Gehem development, represents a real opportunity to maximize the value of these deepwater gas assets for all stakeholders.
Chevron has tried to revive the plan development of the field early this year after delaying it for sometimes. The IDD project is the first major deepwater project in Indonesia with an estimated investment of US$12 billion.
In August 2016, Chevron began gas production in Bangka Field within Makassar Strait, the first phase of the IDD project.
After Bangka, the next IDD projects to work on are the Gendalo and Gehem fields. The combined production is expected to reach 1.1 billion cubic feet of gas and 47,000 barrels of condensate per day.
The Special Task Force for Upstream Oil and Gas Business (SKK Migas) has asked Chevron to recalculate the cost to develop the project as previous proposed costs were considered not economically viable.
Chevron’s IDD project offshore East Kalimantan includes three PSC blocks: Ganal, Rapak and Makassar Strait, and the development of five gas fields, namely Bangka, Gehem, Gendalo, Maha and Gandang.
Chevron is one of the world’s leading integrated energy companies and through its Indonesian subsidiaries, has been present in Indonesia for 94 years. With the ingenuity and commitment of highly skilled and dedicated employees, Chevron Indonesia leads as one of Indonesia’s largest producers of crude oil.
From our onshore oil fields in Riau, Sumatra and our offshore fields in East Kalimantan, we have produced more than 13 billion barrels of oil to meet the energy needs of Indonesia’s growing economy. (*)
Edited by Roffie Kurniawan, email: email@example.com