Chevron's Gendalo-Gehem gas project off Indonesia enters design phase

By OGJ editors
HOUSTON, Dec. 2
-- Chevron Corp.'s Indonesian subsidiary let several front-end engineering and design contracts for developing the Gendalo-Gehem deepwater gas fields in the Makassar Strait, off East Kalimantan. Water depth is about 6,000 ft.

Chevron said the project will include two separate hub developments, each with its own floating production unit, subsea drill centers, export gas and condensate pipelines, and an onshore receiving facility.

Gas from the project will enter the domestic market and also be exported as LNG from the Bontang LNG facility in East Kalimantan. Maximum expected production is 1.1 bcfd of gas and 31,000 b/d of condensate, the company said.

The contracts went to PT Technip Indonesia for two floating production units, PT Worley Parsons Indonesia for subsea and flowline systems as well as well as an export pipeline, and PT Singgar Mulia for an onshore receiving facility.

Chevron currently has an 80% interest in the project and said that it is seeking regulatory approval for a partial farm-down of the holding.

In 2008, Indonesia approved the plan for development of five offshore gas fields in Makassar Strait (Gendalo, Maha, Gandang, Gehem, and Ranggas) that partly lie in concession areas operated separately by Chevron and Eni SPA (OGJ, Sept. 15, 2008, Newsletter).

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