SKK Migas targets the IDD Proposal to be done in February
KATADATA - Chevron Indonesia Company must be patient in waiting for the government’s approval regarding the project proposal revision of the Indonesia Depp-water Development (IDD) in Makassar. The process of approving the proposal is still ongoing until now, since the government’s Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is still evaluating the proposal that was submitted by Chevron.
The planning control deputy of SKK Migas Gunawan Sutadiwiria said that his part has called Chevron’s management last week in order to discuss and clarify the data within the proposal. Unfortunately, Gunawan did not mention in details regarding the discussion.
Gunawan is hoping so that the discussion with Chevron can create the most suitable scheme so that the IDD project can run smoothly; considering that it is one of the largest projects in Indonesia besides the Masela Block in Moluccas, Tangguh Train 3 in Papua, and Jangkrik Field in East Kalimantan. If the four projects were combined, the total investment reaches US$ 43 billion, or IDR 602 trillion. This number has exceeded the foreign direct investments (FDI) worth US$ 28.5 billion, or IDR 399 trillion, which includes 24 sectors.
This IDD project is indeed one of the mainstay projects of Chevron. And in order for the company to be focused, Chevron is planning to let go 25 percent of stake in B Block South Natuna Sea. Also, Chevron will not extend the contract of East Kalimantan Block, which will expire in 2018.
Chevron submitted the revision of the field development proposal on December 31st 2015. In the revision, there are some changes like a change in onstream / operation schedule in some fields. For example, the Gendalo Field, which is scheduled to be operational in 2022, and Gehem Field, which is scheduled in 2023. Initially, both of these projects were scheduled to be operational in 2020.
The amount of investment has also been changed to be lower than before. In the new proposal, Chevron has submitted investment costs that must be spent for the IDD project, which stands at US$ 10 billion, or at IDR 140 trillion. The amount has changed from US$ 6.9 billion, which was inked in 2008, because after the Front-End Engineering Design (FEED) in 2013, the investment needed has almost double to be at US$ 12 billion, or IDR 168 trillion. The reason for this was because back then the oil price was still at US$ 100 per barrel.
