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Economy in brief: Chevron proposes IDD plan for less than $10b

The Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) revealed that a lower-cost plan of development (POD) has been proposed for a large-scale gas project called the Indonesia Deepwater Development (IDD)

The Jakarta Post

Jakarta

Wed, January 6, 2016 Published on Jan. 6, 2016 Published on 2016-01-06T17:42:46+07:00

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he Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) revealed that a lower-cost plan of development (POD) has been proposed for a large-scale gas project called the Indonesia Deepwater Development (IDD).

SKKMigas head Amien Sunaryadi said on Tuesday that the project contractor Chevron had submitted the revised POD on the last day of 2015. 'The contractor has just submitted and we are about to review the plan. The revised POD covers the development for Gendalo and Gehem,' Amien said.

SKKMigas deputy for planning Gunawan Sutadiwiria highlighted that under the revision, the contractor proposed a timeline for development, contract extension and investment plan.

'For Gendalo, going onstream is scheduled for 2022, while for Gehem it is 2023. The [proposed] volume of production remains the same, but there is an increase in reserves,' Gunawan said. 'The investment is less than US$10 billion, which is likely driven by the current plunge in global oil prices.'

Under an initial POD approved in 2008, the IDD project was estimated to cost $7 billion, which later was revised to $12 billion.