Chevron Indonesia Company, 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 Straight, with an estimated investment of US$7 billion-US$8.5 billion.
It said to support the development of those fields, Chevron 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.
Source : theIndonesiatoday.com, 09 August 2010
