CHEVRON has delayed its decision on whether to pursue the final design stage of its Makassar Strait, Indonesia, gas development project offshore Indonesia’s East Kalimantan Province.
The US super-major, which told Energy only recently that it hoped to sustain high levels of investment, said the decision would be made before year end on the $7billion (£5billion) Gehem and Gendalo gas-field development project.
However, the development of the two Kutei Basin fields in the Rapak and Ganal blocks is seen as key to improvement in Indonesia’s declining gas production.
Steve Green, Chevron’s Indo-Asia managing director, said: “We’ll be entering front-end engineering and design likely early next year.”
He added that the process of evaluating bids could take about a year, pushing the final investment back to 2011.
The initial plan for this project was for Chevron to provide about 25% of the gas production from Gehem and Gendalo to the Indonesian market.
Their reserves base is estimated at 3TCF.