Chevron Indonesia said it has started a study to explore further the development alternatives of Gendalo-Gehem Project. This is the second phase of development of Indonesia Deepwater Development Project (IDD) in Kutei Basin, East Kalimantan.
The IDD Project phase II study contract was signed on Wednesday (13/12), witnessed by Head of SKK Migas Amien Sunaryadi. The signing ceremony was held on the West Seno floating production unit, the facility where Bangka Field gas is processed.
"Chevron has been a key partner in meeting Indonesia's energy needs for more than 90 years, driving economic growth, and supporting community development in our area of operations," said Managing Director of Chevron IndoAsia Business Unit Chuck Taylor.
According to Taylor, there are two signed study contracts. First, related to feasibility study of engineering work and project design of IDD which will be done by PT Worley Parsons Indonesia for subsea scope (subsea). The second contract with PT Tripatra Engineering for scope of production facilities. This is a significant progress for projects that will provide fundamental benefits to the people and Government of Indonesia.
"This study activity will explore alternatives that can significantly decrease the cost of capital needs and increase the feasibility level of the project," he explained.
The work in these contracts is expected to be completed by 2018. The second phase IDD project is estimated to have a total potential production of about 3 trillion cubic feet (TCF) of natural gas.
The first phase of the IDD Project, the Bangka Project, has been in production since August 2016 with an installed capacity of 110 million cubic feet of gas per day (MMSCFD) and 4,000 barrels of condensate per day. To date, six LNG cargoes from Bangka Field production have been shipped from Bontang LNG Terminal as part of the LNG Agreement of the Bangka Project with PT Pertamina (Persero) for five years.
Chevron (operator) holds a 63% stake in the Indonesia Deepwater Development Project (in aggregate), along with other joint venture partners Eni, Tip Top, PHE and Muara Bakau partners.