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Development of IDD, Masela, Tangguh LNG Train 3 projects behind schedule

JAKARTA ( – The developments of the three major oil and gas projects, namely the Indonesian Deepwater Development (IDD) in Makassar Srait, Masela Block in Arafura Sea and Train 3 of the Tangguh LNG project in West Papua are running behind schedule.

The Special Task Force for Upstream Oil and Gas Business (SKK Migas) Deputy Head for Planning Control Aussie B. Gautama said the IDD project was originally expected to come on stream in 2018, but then it was pushed back to 2020. “If the project goes ahead through normal business phases, the completion of the project could be even delayed to 2022,” he was quoted by Bisnis Indonesia daily as saying.

The SKK Migas is trying to ensure that the project would come on stream in 2020, he noted.

As for Bangka Field project, one of fields within IDD project, is expected to go ahead as plan and would start commercial operation in 2016, he said. Bangka Field is expected to product up to 120 million standard cubic feet per day (MMSCFD) of gas.

The deepwater Gendala and Gehem Fields development, located within the IDD project, is being reviewed as the economic values of the project had changed. The IDD project is being developed by Chevron. SKK Migas and Chevron are also in talks to develop the Ranggas field.

He said the whole IDD project is being reviewed. The investment to develop project could increase to as high as US$13 billion from originally planned of US$6.9 billion. The operator (Chevron) is also recalculating and renegotiating with its potential off-takers.

As for Masela Block, Aussie Gautama expects the block to come on stream in 2020, delayed from originally planned for 2018. The project’s revision is expected to be completed by the end of this year. The government is also reviewing the request of Inpex Corp to extend the contract beyond 2028. The company expect the government to make decision as early as possible given huge investment needed to develop the Masela Block. Under the existing regulation, operators may only submit request an extension 10 years before the contract expires, meaning that Inpex may only be able to submit contract extension request in 2018 or after. (*)

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