Eric Watkins
Oil Diplomacy Editor
LOS ANGELES, Sept. 8 -- Indonesia has approved a plan by Chevron Indonesia Co. to develop natural gas reserves in five offshore fields in Makassar Strait, including Gendalo, Maha, Gandang, Gehem, and Ranggas.
"The government has approved the POD [plan of development], and the company may now start operations," said Evita H. Legowo, director general for oil and gas at the ministry for energy and mineral resources.
Gendalo, Maha, and Gendang fields form part of the Ganal Block concession operated by Chevron Ganal Ltd., while Ranggas and Gehem fields are on the Rapak Block operated by contractor Chevron Rapak Ltd.
According to a statement released by the ministry, Chevron is required to file a report with the ministry's directorate general of oil and gas on progress once every 6 months.
The ministry also said Chevron is required to file any changes it might undertake in its development scenario, back-up plans, production levels, or investment costs.
"This will be the country's first deep-sea drilling project," said Edy Hermantoro, upstream director at the ministry, who added that parts of the fields lay in concession areas operated separately by Chevron and Eni SPA.
Without elaborating, Edy said the POD in the area will "integrate and involve both companies."
Contact Eric Watkins at [email protected].
