Chevron Strikes Gas Offshore Indonesia

Chevron Indonesia has discovered natural gas off the eastern coast of Kalimantan that could boost the country’s production by more than 10 percent. 

The company struck a reserve of 2.3 trillion cubic feet in the Makassar Strait, nation’s upstream oil and gas regulator BPMigas said on Monday. Total cost to develop the block is estimated at up to $7 billion.

The company is expected to produce 1,000 million standard cubic feet per day (mmscfd) of gas from the block, BPMigas said.

Chevron owns four gas blocks in the Makassar Strait, located between Kalimantan and Sulawesi islands, and continues to explore within those blocks for more gas reserves. It began exploration activities on the blocks in 2008.