Chevron to Take Final Investment Decision on Indonesia Deepwater Gas Project This Year

Chevron is likely to conclude the final investment decision for its Indonesia deepwater development project this year, says Jakarta Globe newspaper.

“It still awaits government approval. We hope that we can get it as soon as possible so the final investment decision can be made,” Donny Indrawan, company spokesperson said.

He declined to specify the date, adds the newspaper.

The project involves building two offshore natural gas hubs tied to the development of four natural gas blocks, namely Ganal, Rapak, Makassar Strait and Muara Bakau. It is country’s first ultra-deepwater natural gas project.

Chevron previously obtained approval for the project from the government, but it made several changes to its investment plans, which required it to be approved anew, says Jakarta Globe.

The original investment was projected at $7 billion but could rise to as much as $12 billion, adds the newspaper.

The project which was earlier expected to be operational in 2015 is now delayed till 2018.

At its peak, the project will produce 1.1 billion cubic feet of natural gas per day.

Sign-up for our free weekly newsletter update via email here