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SKK Migas expects Italy’s Eni to take over gas-rich IDD project by first quarter of 2021
The US$6.98 billion deepwater drilling project is slated to produce 27,000 barrels of oil per day and 844 million standard cubic feet per day of gas starting late 2025.
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Chevron workers inspect an oil and gas facility at the Rokan Block in Riau at an unspecified date. Photos were handed out on March 2020. (SKK Migas/SKK Migas)
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ndonesia has pinned its hopes on Italy-based oil and gas supermajor Eni to take over the multibillion-dollar deepwater development (IDD) project in the Makassar Strait by March 2021 at the latest, right on the heels of Chevron’s exit.
Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) head Dwi Soetjipto said on Feb. 3 that SKK Migas estimated ENI to conclude ongoing talks with Chevron by the end of the first quarter.
“For the IDD, it looks like Eni will be the potential buyer,” he said at a hearing with the House of Representatives in Jakarta. “By 2021, the operator can extend the forward contract for the block and discuss the IDD plan of development.”
The gas-rich project is partly located on the Ganal Block and Rapak Block, whose current production sharing contracts (PSC) are slated to expire on Feb. 23, 2028, and Dec. 3, 2027, respectively.
Dwi noted that Eni would likely integrate the IDD project with its existing facilities in the Kutai basin. The Italian company also runs the Jangkrik Field in the neighboring Muara Bakau Block within the same basin.
The US$6.98 billion IDD project is slated to produce 27,000 barrels of oil per day (bopd) and 844 million standard cubic feet per day (mmscfd) of gas starting late 2025.
Read also: What is happening with RI’s strategic gas projects?
