Chevron Pacific Indonesia decided to withdraw Makassar Strait block in the Indonesia Deepwater Development (IDD) project due to poor investment return. Chevron wants to combine the Makassar Strait l with the Indonesia Deepwater Development (IDD) project because one of the fields in Makassar Strait is also included in the IDD project of Maha field.
However, the integration of the block to the IDD project made the business return drops. The nett present value (NPV) of the project becomes negative if combine with Rapak and Ganal blocks. Therefore, Chevron was asked to compose a new proposal of Makassar Strait without including the IDD project.
There are three production sharing contracts (PSC) in the IDD project namely Makassar Strait, Rapak, and Ganal. Makassar Strait is the smallest part of the IDD mega project that is included in the national strategic projects. Field Maha so far has been discovered only the smallest volume of oil and gas than other fields such as Gendalo or Gehem.
