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24

Global Recession Makes Chevron Re-Consider Indonesian Deepwater Venture

Financial crisis and global recession has influenced the plans of Chevron Corp. to extract natural gas in Indonesian first deep-sea drilling venture

Chevron will consider the cost and schedule to develop the Ganal gas fields off the country’s part of Borneo, Suwito Anggoro, president director of the oil company’s Indonesian unit, said in an interview in Jakarta yesterday.

Chevron joins oil companies including Singapore Petroleum Co. in reviewing projects after crude prices dropped more than $100 a barrel from their July peak of $147.27 as the global recession damps demand. Producing gas from the Ganal area would be expensive as it requires drilling in the seabed about 3,000 feet (914 meters) below the surface.

“We see it is as a prospective project in the future,” Anggoro said. “We’re committed to developing the deep-water areas.”

The project, of which Chevron owns 80 percent and Eni SpA the rest, would boost supply to a liquefied natural gas plant at Bontang in East Kalimantan province and may allow Indonesia to export more LNG than initially planned. The field may pump close to 1 billion cubic feet a day of gas at its peak, about 13 percent of Indonesia’s output last year.