Chevron (CVX) Said to Delay Start of $12B Deepwater Project in Indonesia

Chevron (NYSE: CVX) is said to be delaying a $12 billion deepwater project offshore Indonesia.

The Jakarta Post said Tuesday that Chevron's PT Chevron Pacific is revising calculations on the $12 billion Indonesia Deepwater Development (IDD) project in the Makassar Strait in East Kalimantan.

The company is planning to revise its calculations on the project, following the discovery of a new gas reserve, which has increased the project’s monetizing value ... God willing, they will be able to submit the concept by the end of this year. Otherwise, it will disrupt the domestic supply of gas in coming years, said program director for Indonesia's Energy and Mineral Resources Ministry’s oil and gas directorate general, Naryanto Wagimin.

Wagimin sees the project starting one-year later than previously anticipated.

Total production from the four PSCs -- which are for Ganal, Rapak, the Makassar Strait and Muara Bakau, with five gas fields: Bangka, Gehem, Gendalo, Maha and Gandang -- is expected to reach more than 1,000 million standard cubic feet per day (mmscfd) of gas, with total gas reserves of 2.3 trillion cubic feet.

Chevron is indicated lower in early trading.

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