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Jakarta Post

Indonesia gives Chevron 3 months to submit IDD proposal

Indonesia gives Chevron 3 months to submit IDD proposal Logo of Chevron Corporation (Reuters/Mike Blake)
Stefanno Reinard Sulaiman
Jakarta   ●   Tue, August 14, 2018 2018-08-14 12:22 1001 b147f6715e2195e5246e701df52ed394 1 Business Indonesian-Deepwater-Development,Chevron-Pacific-Indonesia Free

The government has given US oil giant Chevron Corporation three months to complete its proposal on the Indonesian Deepwater Development (IDD) project, one of the biggest gas projects in the country, an official has said.

Last month, Chevron withdrew its proposal to extend its contract in the Makassar Strait Block, which expires in 2020, as the company deemed that the block was uneconomical when combined with the IDD project.

The Makassar Strait Block produced 1,965 barrel oil per day (bopd) and 2.8 million standard cubic feet per day (mmsfcd) of gas in April.

Energy and Mineral Resources oil and gas director general Djoko Siswanto said the IDD project’s onstream date would be postponed three months.

"It is true that production will be delayed. But I assure you that it is not a year, only three months," Djoko said on Monday.

The IDD is a US$6.9 billion-project with a production target of 1.23 million standard cubic feet per day (mmfcd) of gas and 50,750 barrels condensate per day (bcpd) by the fourth quarter of 2023. The IDD involves three blocks – the Makassar Strait, Rapak and Ganal blocks – the contracts for the latter two are to expire respectively in 2027 and 2028.

The delay will push back the second-phase production to late 2023 or early 2024 from its initial schedule of October 2023. (bbn)