Eric Watkins
Senior Correspondent
LOS ANGELES, May 6 -- Indonesia has approved a proposal by Chevron Corp. to develop natural gas fields on the deepwater Galan Block off East Kalimantan.
"The current price of oil has reduced the risks of developing deepsea gas blocks," said Energy and Mineral Resources Minister Purnomo Yusgiantoro. He said the price of natural gas is expected to increase in line with the price of oil.
According to ministry documents, Chevron committed to spend $311.6 million to develop the block, which is believed to have the potential to produce an average of 800 MMcfd. Chevron holds an 80% stake in the block, while Eni SPA holds the remaining 20%.
Contact Eric Watkins at [email protected].
