Fossil energy – Indonesia
Indonesian upstream regulator SKKMigas has urged US oil and gas company Chevron to speed up the divestment process of its 62% operating interest in a deepwater gas field project in offshore East Kalimantan.
“Italy-based Eni is negotiating with Chevron about the acquisition, leaving one criterion yet to satisfy,” said SKK Migas deputy head Fatar Yani Abdurrahman mid July at a virtual conference.
Abdurrahman did not disclose the specifics of the last criterion. “Hopefully, the acquisition can complete within this year (2021). Eni will then propose a new development proposal,” he added.
The upstream regulator in September 2020 revealed that Eni is to take over Chevron’s stake in the Indonesia Deepwater Development (IDD) project. The announcement came after Chevron in January 2020 decided to step away as it ‘does not compete in the company’s portfolio’.
The project is a 2-phase joint development of 3 gas fields covering Kutei Basin in Makassar Strait – Bangka and Gendalo-Gehem. The IDD production sharing contract expires in 2027.
Phase 1 (Bangka) in 2014 began construction and in 2016 commenced production. The average peak output in 2019 was around 700 to 800 million standard cubic feet per day.
Feasibility studies for phase 2 (Gendalo-Gehem) are underway.