Chevron Enters Design Phase, Awards FEED Contracts Offshore Indonesia

Chevron awarded FEED contracts for the Gendalo-Gehem natural gas development in East Kalimantan, Indonesia. The contract for the FPUs was allocated to PT Technip Indonesia; the contracts for the subsea and flowline system and for export pipelines were awarded to PT Worley Parsons Indonesia; and PT. Singgar Mulia received the contract for the onshore receiving facility.

The Gendalo-Gehem project will include two separate hub developments, each with its own floating production unit (FPU), subsea drill centers, export gas and condensate pipelines and an onshore receiving facility. Gas from the project will be used both domestically and also converted to LNG at the Bontang LNG facility in Indonesia for export. Daily production from the project is anticipated to be 1.1 Bcf of natural gas and 31,000 barrels of condensate.

Currently, Chevron holds an 80% interest in the project and is seeking regulatory approval to farm-down a portion of its holding; Eni SPA holds the remaining interest. The Gendalo gas-condensate project, located in the Kutal Basin, is considered to be one of the deepest projects ever undertaken offshore Indonesia, in water depths ranging from 2,500 to 6,000 feet (610 to 1,829 meters).

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