Eni To Take Over Chevron’s Role in Indonesia Deepwater Project
The sale of Chevron’s interest in the IDD project is part of its cost-cutting measures.
Italy's Eni is expected to take over Chevron’s operation position in the Indonesian Deepwater Development (IDD) project, according to the country’s oil and gas chairman. Reuters said SKK Migas Chairman Dwi Soetjipto told lawmakers that discussions were close to being finalized.
Chevron said in January it would sell its 62% interest in the IDD project as part of cost-cutting measures. Chevron did not provide details of the sale, but said the project has value for another operator and the Kutei Basin can continue to be developed safely and responsibly, according to Reuters.
Eni was already a partner in the IDD project along with China’s Sinopec.
The IDD project in the Makassar Strait began production in 2016 and averaged 2,000 barrels of liquid and 33 million ft3 of natural gas in 2019. The IDD project includes the Gendalo and Gehem gas fields.
Last year, SKK Migas lowered its peak gas output estimate for the IDD project after Chevron cut its investment in the project. In April 2020, SKK Migas cut its full-year production outlook after reporting a drop in oil and gas output in the first quarter.
Peak output was expected to reach about 700–800 MMscf/D, compared with an initial estimate of more than 1 Bcf/D when the Gendalo and Gehem gas fields begin production, which is expected 2025.