Chevron Moves Ahead Its US$7 Bln Makassar Strait Gas Project

Resources

Monday, 09 August 2010 11:12

Chevron Indonesia Company (CICo), the Indonesian operation of US giant energy company, said on Monday it will move ahead to develop its Gendalo, Gehem, Gandang, Bangka and Maha deep-water gas fields in Makassar Strait, with an estimated investment of US$7 billion-US$8.5 billion.

It said to support the development of those fields, CICo is planning to install undersea pipe from Floating Production Unit, located in Gendalo and Gehem fields to Santan Terminal on the other side of the Mahakam Delta, as well as from Bangka Field to Floating production facility in West Seno field, which has already been in operation.

Gas from Santan Terminal would then delivered to Badak NGL's Bontang liquefied natural gas plant.

“The development of those fields is expected to give positive impact, in particular in lifting local as well as national economy,” Chevron Indonesia said in a statement.

As part of process to carry out the pipe installation projects, the company will conduct environment assessment impact (AMDAL) to gain data and initial information over the benefits and impact of the development of those fields.

BPMigas, the upstream oil and gas regulatory body has said earlier that the Gehem and Gendalo natural gas projects would be the deepest offshore gas fields in the country.

The Gendalo-Gehem project is a gas/condensate development project currently in phase 3.

The project consists of five deepwater fields (2,500-6,000 feet or 760-1,800 metres)- Gendalo, Maha, Gandang, Gehem and Bangka connecting to two processing hubs: Gendalo Hub (Gendalo, Maha, Gandang) and the Gehem Hub (Gehem and Bangka).

Three of the fields — Gandang, Gendalo, and Maha — are located in the Ganal concession while the remaining two — Bangka and Gehem — lie in the Rapak concession. Chevron holds an 80% operating interest in the fields, while Eni SPA holds the remaining 20%.

The Gendalo field is estimated to have reserves of between 2 trillion and 3.4 trillion cubic feet of gas, as well as 20 million to 35 million barrels of condensate. Chevron expects to produce 750 mmcfd of gas and 10,000-20,000 barrels per of liquids.

» Tap Oil to Exit from Rangkas Oil-Gas Block

Theindonesiatoday.com - Australian company Tap Oil Limited plans to exit from Rangkas production sharing contract in West Java, Indonesia.

Latest News

» Tap Oil to Exit from Rangkas Oil-Gas Block

» GMG Acquires Inobonto for Rubber Plantation in Indonesia

» Tangerang Regent Threatens to Sue PT Steel Power Mandiri

» Bintang Mitra Sells Ristia Bintang for Rp5.5 Billion

» Inco to Invest $1.5 Billion for Expansion

» Chevron Expects Approval on North Duri Expansion Mid Year

» Shenhua Coal Sales Increased 16% in First Quarter

» Padang Resources Joins OTCQX

» Mall & Apartment Projects in Jakarta Need to be Halted

» Mirach to Drill 12 New Wells at Kampung Minyak Field

» Hangfeng Reports 14% Profit Growth

» IDX Ends Down 0.07%, Defies Regional Markets

» APAC in Talks with Investors for West Sumatra Iron Ore

» Tower Bersama Acquires Infratel

» Energi Stocks Fall on Lower Oil Price

Latest News

Most Read

Most Read

Industries

Politics

Law

People