Sinopec to join Gendalo-Gehem project

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.

Offshore staff

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.

12/02/2010

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