JAKARTA (RambuEnergy.com) – Chevron Pacific Indonesia said it expects to finalize the plan of development (PoD) of the Indonesian Deepwater Development (IDD) project, located in Makassar Strait this year, delayed from scheduled last year.
“We hope to complete the PoD of IDD this year,” Yanto Sianipar, Senior Vice President, Policy, Government and Public Affairs, of Chevron told RambuEnergy.com on the sideline of the Indonesian Petroleum Association (IPA) convention and exhibition (May 2-4).
Once this phase is completed, the company would move to the next phase, namely the front-end engineering design (FEED).
Asked about the estimated cost of the IDD project, Sianipar declined to comment. But he indicated that the project costs could be lower than originally planned.
Chevron is now reviving the planned development of the project after delaying it for sometimes. The IDD project is the first major deepwater project in Indonesia with estimated investment of US$12 billion.
In 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.
The IDD project, according to SKK Migas, will be economically viable if assumes oil price at USD70-80 per barrel, not USD100 per barrel as proposed by Chevron.
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. (*)
Written by Roffie Kurniawan (email: firstname.lastname@example.org)