July 31, 2019 / 11:27 AM / 22 days ago

Indonesia's oil and gas regulator urges quick resolution for Chevron's IDD project

JAKARTA, July 31 (Reuters) - Indonesia’s oil and gas regulator SKK Migas said the authorities want to speed up talks with Chevron Corp over the Indonesia Deepwater Development (IDD) gas project to meet the onstream target of 2024.

The government is negotiating with the U.S. oil giant, as well as its partners Italy’s ENI and China’s Sinopec , to finalise the revised development plan, SKK Migas chairman Dwi Soetjipto said on Wednesday.

“We continue to push, we met with Chevron, with ENI, but not yet with Sinopec. We want to arrange discussion so this issue can be resolved soon,” Soetjipto said.

He added that the regulator maintains its operation target for IDD.

“If there is a decision soon, we can meet the 2024 target, or first quarter of 2025 the latest,” Soetjipto said, adding that among issues being discussed is the production share for Chevron and partners.

Soetjipto also said the government is prepared to give an initial agreement to extend the production sharing contracts covered under the IDD. Two of the contracts will expire in 2027 and 2028.

Located in Makassar Strait, the IDD project involves the Bangka, Gendalo, and Gehem gas fields.

Chevron began production at Bangka field in 2016 and later submitted a revision for the second phase of the IDD development to extract gas from Gendalo and Gehem fields.

According to Chevron’s 2018 report, the updated plan for the project has a capacity of 920 million cubic feet of natural gas and 30,000 barrels of condensate per day.

Soetjipto said the project is expected to supply gas to the Bontang LNG plant in East Kalimantan. (Reporting by Wilda Asmarini Writing by Fransiska Nangoy Editing by Louise Heavens)

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