Chevron Makes Final Investment Decision on Indonesia Deepwater Project

Chevron Corp has made final investment decision (FID) on the first stage of its Indonesian deepwater gas project but has delayed decision on the second phase, news agency Reuters reported Friday.

The multi-billion dollar project includes the Bangka, Gendalo, Gehem, Gandang and Maha fields off eastern Borneo.

According to Reuters, Chevron made a final decision relating to the Bangka field, which makes up the first stage of the project. Decision on the second stage, which consists of development of the Gendalo and Gehem fields will not happen this year.

"A final investment decision for the second stage of IDD will not be achieved in 2014," a Chevron spokesman said, without saying how long the FID would be delayed.

Chevron said it has not received the necessary government approvals for the second stage, and that the delay will impact the contractual and commercial agreements already in place, reported Reuters.

The company spokesperson added that talks with the government to get the project back on track are "still in early phases and it will require additional time and engagements before we are clear about the project schedule.”