Sinopec to join Gendalo-Gehem project

SINGAPORE – China’s Sinopec Group has reached an agreement with Chevron to join the Gendalo-Gehem deepwater natural gas project offshore East Kalimantan, Indonesia, according to a report by Dow Jones. The deal would give Sinopec 18% in the Rapak, Ganal, and Makassar Strait blocks.
Although no engineering or design work has been completed, Chevron estimates call for the development to produce 1.1 Bcf/d of natural gas and 31,000 b/d of condensate. With this in mind, first production is several years away.
The agreement still requires approval by the governments of China and Indonesia.