According to local press reports, quoting Chevron's Corporate Communication Manager, the company has received approval from SKK Migas to open a data room for the Indonesia Deepwater Development (IDD) in the Rapak and Ganal PSCs, located in the Makassar Strait, for potential investors. As of January 2020, there has not been any final selection of partner, who could potentially also assume operatorship and work alongside SKK Migas to realize the IDD project and bring the fields (Gendalo, Gandang and Gehem) onstream.  In January 2019, local media reported that Chevron and SKK Migas agreed on a development concept change for the IDD project, from Floating Production Unit (FPU) to Shallow Water Platform (SWP). The change also meant using a higher percentage of local content, resulting in total cost saving to around USD 5 billion, compared to the previous reported figure of USD 6 billion. The authority was hoping to approve the Plan of Development (PoD) following the agreement on change of development concept, and line up work progress such as award and completion of the FEED contract, and submission of the Environmental Impact Assessment document for approval prior to proceeding with the baseline survey.  As of end-2018, the reported development concept involved a production capacity of 920 MMcfg/d and 30,000 bc/d. Total combined production is estimated to be around 3 Tcf of gas.  In mid-April 2018, local media reported that the company had completed approximately 65% of the pre-FEED study project, with target completion date around mid-2018. Result of the study were to be used in revising the plan of development.  Interests in the Rapak and Ganal PSCs are split among Chevron (62%), Eni (20%) and Sinopec (18%). The Rapak PSC will expire in 2027 and the Ganal PSC in 2028.  Background Information  The second phase of the IDD involves the development of Gendalo, Gandang (Ganal PSC) and Gehem (Rapak PSC) fields. The Maha field (Makassar Strait PSC) field, previously part of the project, has been excluded due to the PSC expiring in 2020 and Chevron not intending to continue to operate the block. The Makassar Strait block was offered for bidding by the government in 2018, but it was not awarded.  Chevron submitted a previous POD revision for the IDD project in 2016, but the proposal was sent back by SKK Migas for further modifications. Reportedly, the regulator rejected Chevronâs request for investment credit of 240% for the project, saying that such incentive should not exceed 100%. The revised POD proposed a total investment of less than USD 10 billion, lower than the USD 12 billion estimated in 2013. The operator was initially expecting to produce first gas in 2022 from Gendalo and in 2023 from Gehem. The updated plan also included reserves upgrades and request for contract extensions. Estimated production rates based on the POD revision are 700 MMcfg/d and 20,000 bc/d (from the Gendalo hub) and 420 MMcfg/d plus 27,000 bc/d (Gehem hub).  In mid-July 2017, Chevron was reported to have submitted to SKK Migas a proposal to conduct pre-FEED studies for the second phase of the IDD. The plan reportedly called for improved economics and efficiency measures from the previous PoD.  The company reportedly completed the study for the development project and submitted proposal to SKK Migas to possibly utilize the existing Floating Production Unit (FPU) at the Jangkrik field, operated by ENI, for the purpose of reducing cost. It was also reported that SKK Migas suggested other options for the development, where Chevron can build its own facility and tap into the Jangkrik field for electric power.  Chevron reportedly started its tendering process in looking for a suitable contractor for pre-FEED studies for the second phase of IDD project in early October 2017. The tendering process was reportedly expected to complete around late October or early November 2017, with Pre-FEED work starting after that, for an estimated duration of five months. The approval for the development plan budget was received in early September 2017, as reported by local media, with estimated USD 3.3 million, lower than the previous submitted plan budget of USD 15 million from Chevron.  In mid-December 2017, Chevron awarded two contracts for preliminary development studies for the second phase of IDD. The contracts were signed on or around 13 December 2017, first between the operator and Worley Parsons for the feasibility study of engineering work and project design for subsea systems, and second with PT Tripatra Engineering for the scope of production facilities. The purpose of the studies was to find ways to reduce the capital cost and at the same time increase the level of viability for the project. The work studies were likely completed in 2018.  The first phase of IDD came onstream in August 2016 with the Bangka field, developed as a subsea tie-back to the West Seno field. The field averaged approximately 90 MMcfg/d and 4,300 bc/d in 2016. According to the initial plan, Gehem and Gendalo would constitute the two production hubs for the second phase, gathering gas respectively from the northern and southern areas of the development. Peak production from the second phase of IDD was initially projected to be 1.1 Bscfg/d and 35,000 bc/d, with at least 25% to be allocated domestically.
According to local press reports, quoting Chevron's Corporate Communication Manager, the company has received approval from SKK Migas to open a data room for the Indonesia Deepwater Development (IDD) in the Rapak and Ganal PSCs, located in the Makassar Strait, for potential investors.