Govt Disappointed Over Changing Cost Estimate for IDD Project

The government has expressed disappointment over the fact that Chevron Indonesia Company changed the cost estimate for the second phase of the Indonesia Deepwater Development (IDD) project three times in 24 hours.

Deputy Energy and Mineral Resources Minister Arcandra Tahar said in Jakarta on Thursday that the government would strive to reconfirm the final project cost with Chevron on Friday.

“The government will strive for a reasonable cost [assessment], as it has been changed [three times in 24 hours],” he said.

Chevron Indonesia Company is the local subsidiary assigned by US-based oil and gas firm Chevron Corporation to the IDD project.

Chevron had been expected to submit the final revision of the plan of development (POD) for the IDD project on Thursday.

On Tuesday, Arcandra said the project cost would go down to US$6 billion from an earlier estimate of $12.8 billion from Chevron, calculated in 2014.

Chevron Indonesia spokesperson Danya Dewanti declined to confirm or deny the project cost reviews, as she was not allowed to divulge details of ongoing discussions with the government.

The IDD project, which began in 2016, aims to produce 1.230 million standard cubic feet per day (mmfcd) of gas and 50,750 barrels of condensate per day (bcpd) by 2023.

courtasy : Thejakartapost
photo : tribune.com.pk

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