JAKARTA, Jan 22 - Chevron Corp (CVX.N) is reviewing its business plans in Indonesia, but remains committed to developing natural gas fields offshore from East Kalimantan, Borneo island, the U.S. major said on Thursday.
The Gehem and Gendalo natural gas projects in the Makassar Strait would be the deepest offshore gas fields in Indonesia, at water depths ranging from 2,500-6,000 feet (760-1,800 metres), an official at oil watchdog BPMIGAS told Reuters.
Chevron, Indonesia's biggest oil producer, previously said it planned to invest about $6 billion to develop gas fields off Borneo, including the Gehem and Gendalo projects, which would help Indonesia to crank up its flagging gas output.
"We are currently reviewing our business plans as part of our normal business planning process and in light of changes in the business environment," Chevron spokesman Gareth Johnstone said in a statement.
"That said, we are committed to developing the deepwater projects in the Kutei Basin. We look forward to working in partnership with the Government of Indonesia and BPMIGAS in developing these fields," he added.
Oil companies throughout the world have been reevaulating energy developments given a collapse in oil prices, which has made some projects uneconomic.
Deepwater projects are particularly expensive to develop.
An official for energy watchdog BPMIGAS said there was no proposal to review the Makassar Strait project.
The combined natural gas reserves in the area covered by the plan are estimated at more than 3 trillion cubic feet.
Indonesia, which has far more gas than oil, has pushed companies to move faster in developing areas as the country badly needs the gas for domestic industries and exports.
Chevron currently produces gas from several other fields in East Kalimantan, but the output is in decline.
The Gehem and Gendalo natural gas projects in the Makassar Strait would be the deepest offshore gas fields in Indonesia, at water depths ranging from 2,500-6,000 feet (760-1,800 metres), an official at oil watchdog BPMIGAS told Reuters.
Chevron, Indonesia's biggest oil producer, previously said it planned to invest about $6 billion to develop gas fields off Borneo, including the Gehem and Gendalo projects, which would help Indonesia to crank up its flagging gas output.
"We are currently reviewing our business plans as part of our normal business planning process and in light of changes in the business environment," Chevron spokesman Gareth Johnstone said in a statement.
"That said, we are committed to developing the deepwater projects in the Kutei Basin. We look forward to working in partnership with the Government of Indonesia and BPMIGAS in developing these fields," he added.
Oil companies throughout the world have been reevaulating energy developments given a collapse in oil prices, which has made some projects uneconomic.
Deepwater projects are particularly expensive to develop.
An official for energy watchdog BPMIGAS said there was no proposal to review the Makassar Strait project.
The combined natural gas reserves in the area covered by the plan are estimated at more than 3 trillion cubic feet.
Indonesia, which has far more gas than oil, has pushed companies to move faster in developing areas as the country badly needs the gas for domestic industries and exports.
Chevron currently produces gas from several other fields in East Kalimantan, but the output is in decline.
