Chevron Hits First Gas Offshore Indonesia

Published at 10:41AM - 01/09/16

Chevron announced its Bangka field development project has come online with first gas flowing from the Indonesian offshore field.

The US supermajor explained in a statement that this marks the first phase of the Chevron-led Indonesia Deepwater Development (IDD) project in East Kalimantan.

“First gas for the Bangka project is a significant milestone and highlights Chevron’s commitment to continue supporting the government’s energy goals and delivering energy to Indonesia safely, efficiently and reliably,” Chevron IndoAsia Business Unit Managing Director, Chuck Taylor, said.

Chevron Hits First Gas Offshore Indonesia

“The project represents Chevron’s commitment to bring global capabilities and advanced technology to Indonesia and applies best practices and expertise from our deep water developments around the world,” Taylor added.

“For more than 90 years, Chevron has been a major partner in meeting the energy needs of Indonesia, driving economic growth and supporting local communities in East Kalimantan and the other areas where we operate in Indonesia,” he stated further.

Chevron Oil and Gas Worker Indonesia
Chevron Oil and Gas Worker Indonesia

The Bangka project has a design capacity of 110 million cubic feet of natural gas and 4,000 barrels of condensate per day.

Chevron reached a final investment decision (FID) for the project in 2014 after government approvals and began drilling the development wells in the second half of 2014.

Chevron holds a 62% interest in the project with co-venturers Eni (20%) and Tip Top (18%).

Chevron to Supply Gas to China

In another major development for Chevron in Asia this week, the company announced that Chevron USA has signed a binding liquefied natural gas (LNG) sales and purchase agreement with ENN LNG Trading Company Limited for the delivery of LNG to China.

Under the agreement, ENN will receive up to 0.65 million tonnes of LNG per year over 10 years and the first delivery is scheduled to start in 2018 or in the first half of 2019.

Chevron is nearing the completion of its largest shipbuilding and fleet modernisation programme, which will involve the introduction of 13 new ships by 2017.