On Wednesday, Indonesia’s upstream oil and gas regulator said that Italy’s Eni would take over the Indonesian Deepwater Development (IDD) from operator Chevron.
Indonesia’s SKK Migas chairman Dwi Soetjipto said that the talks were at the finalization. He did not disclose the estimated value of the deal.
Eni did not immediately respond to a request for comment.
Previously in January, Chevron confirmed the plan to sell its 62% interest in the IDD project as a part of its effort to cut costs and streamline operations globally. In 2019, Chevron did cut investment due to a change in the facility’s design, resulting in the project to cut its peak gas output estimate.
Meanwhile, Eni is already a partner in the project, along with China’s Sinopec.
The IDD project is located in the Makassar Strait, which involves the Bangka, Gendalo, and Gehem gas fields.
According to Chevron, last year, IDD had an average daily production of 2,000 barrels of liquids and 33 mcf of natural gas. At the moment, the project’s peak output was likely to only hit 700-800 mmscfd, compared to the initial estimate of more than 1 bcfd.
