Chevron’s operated interests in Kalimantan include four offshore production sharing contract (PSC) areas covering approximately 11,100 square km (2.8 million acres) offshore in the Kutei Basin.
In the Kutei Basin in East Kalimantan, most of the production in 2015 came from 14 offshore fields in the shelf area within the East Kalimantan PSC, with the remainder from the deepwater West Seno Field in the Makassar Strait PSC. In 2016, Chevron advised the government that it would not propose to extend the East Kalimantan PSC and intends to return the assets to the government when the PSC expires in 2018.
There are two natural gas deepwater development projects in the Kutei Basin known collectively as the Indonesia Deepwater Development.
Chevron has a 62 percent interest in the Bangka project and it announced achievement of natural gas production on 31st August 2016. The project includes a subsea connection to a floating production unit (FPU) and has a design capacity of 110 million cubic feet of natural gas and 4,000 barrels of condensate per day. A final investment decision was reached in 2014, following government approvals. We began the project with the drilling of two development wells in the second half of 2014.
The other project, Gendalo-Gehem, includes two separate hub developments, each with its own FPU, subsea drill centers, natural gas and condensate pipelines, and onshore receiving facility. Plans call for the produced natural gas to be sold domestically and through liquefied natural gas export. The project has a planned design capacity of 1.1 billion cubic feet of natural gas and 47,000 barrels of condensate per day. The company's interest is approximately 63 percent. Chevron continues to work toward a final investment decision.