TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Chevron withdraws from Makassar Strait

The government announced on Wednesday that US oil giant Chevron had decided to withdraw its proposal to extend its contract for the Makassar Strait block, which will expire in 2020.

Stefanno Reinard Sulaiman (The Jakarta Post)
Jakarta
Wed, July 11, 2018 Published on Jul. 11, 2018 Published on 2018-07-11T12:43:26+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Chevron withdraws from Makassar Strait The Energy and Mineral Resources Ministry's oil and gas director general, Djoko Siswanto (Courtesy of/migas.esdm.go.id)

T

he government announced on Wednesday that US oil giant Chevron had decided to withdraw its proposal to extend its contract for the Makassar Strait block, which expires in 2020.

The company said the block was uneconomical, and that it would be removed from its Indonesia Deepwater Development (IDD) project.

The IDD is one of the biggest natural gas projects in the country that targets producing 1.23 million standard cubic feet per day (mmfcd) of gas and 50,750 barrels condensate per day (bcpd) by 2023. The first phase in Bangka Hub started production in 2016.

The project covers three blocks, the Makassar Strait, Rapak and Ganal, with the latter two to expire respectively in 2027 and 2028.

“We decided to terminate the block [Makassar Strait] and exclude it from the IDD project. The existing operators, Chevron, Pertamina and Sinopec, have said they weren't interested anymore. So we will tender it soon,” said oil and gas director general Djoko Siswanto of the Energy and Mineral Resources Ministry.

Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) chairman Amien Sunaryadi said the auction for the block would take place in about three months.

On June 29, Chevron proposed an extension to its production sharing contract (PSC) for the Makassar Strait block, along with the Rapak and Ganal blocks. In early July, however, the government ordered the company to renew their proposal and exclude Rapak and Ganal to reduce the IDD's cost, as it was still in cost recovery. (bbn)

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.