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Chevron calls off Indonesia Deepwater Development EPC tender

JAKARTA (Rambu Energy) – PT Chevron Indonesia Company (Cico) said that it has suspended the tender for engineering, procurement and construction (EPC) of the country’s first deepwater project called Indonesia Deepwater Development (IDD), pending on the Indonesia’s government approval of its production sharing contract extension.

The Division Head for Project Management and Facilities Maintenance of the Special Task Force for Upstream Oil and Gas Business (SKK Migas) Agus Kurnia said Chevron has actually begun the EPC tender.

“There were already a number of EPC winners, however, it (the tender process) has been suspended,” Agus Kurnia was quoted by Kontan.co.id as saying.

In late October, Cico awarded a substantial subsea contract to Technip for the Bangka Development located in the Rapak PSC area, approximately 70 km offshore the province of East Kalimanan, Indonesia.

The Technip contract covers engineering, procurement, construction, installation, commissioning and pre-commissioning (EPCIC) of flexible, umbilical and subsea structures.

Chevron is developing the monster IDD project through four production sharing contracts (PSCs), namely Ganal, Rapak, Makassar Strait and Muara Bakau. There are five gas fields being developed in the IDD project, namely Bangka, Gehem, Gendalo, Maha and Ganda fields.

The Makassar Strait, Ganal and Rapak blocks will expire in 2020, 2028 and 2027 respectively. Chevron has asked the government to ensure that the block’s will all expire in 2028.

Chevron has planned to drill 28 deepwater wells in the five fields, namely Bangka, Gehem, Gendalo, Maha and Gandang fields through two floating production units (FPUs) hub and one subsea tie-back. These two FPU hubs are Hub Gendalo, which is the facility integrating with the field of Gendalo, Maha and Gandang in 2,200-5,600 feet depth and Hub Gehem. The Hub Gehem is production facility of Gehem field in 6,000 feet of depth.

The Bangka Field in 3,200 feet of depth would become subsea tie back to FPU West Seno, which already exist and is operated by Chevron.

Chevron has estimated total investment of US$12 billion to develop the three blocks (IDD project). “It is not certain yet, when the project will resume. It depends on Chevron and the government,” he said.(*)

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