Energy and Mineral Resources Deputy Minister Arcandra Tahar said on Tuesday that the discussion on the PoD with contractor Chevron had reached the final phase.

“The PoD revision will be completed this quarter, so the onstream phase could be expedited,” Arcandra said, adding that the project would still apply the cost-recovery scheme until the contracts expired.

Arcandra could not disclose the revised project cost, but he said the initial project cost was more than US$18 billion.

The IDD project is located mainly in the Kutei Basin, which covers an extensive area of onshore Kalimantan, extending into ultra-deepwater territory in the middle of the Makassar Strait, according to a report from energy think tank Wood Mackenzie.

In an effort to make the IDD viable, the government has decided to exclude the Makassar Strait Block from the project. The Makassar Strait block will be auctioned separately, and the IDD only contains two blocks -- Ganal and Rapak.

“We will also amend the production-sharing contracts (PSC) in line with the decision to cut out Makassar Strait from the IDD project,” he said.

The IDD, before the Makassar Strait block was excluded from the project, was expected to produce 1,230 million standard cubic feet per day (mmfcd) of gas and 50,750 barrels condensate per day (bcpd) by 2023. (bbn)

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