Reply #3: Chevron to invest $6 bln in Indonesia gas fields

[ozymandius]

JAKARTA (Reuters) - Chevron Corp. (NYSE:CVX - news) plans to invest about $6 billion to develop gas fields off the coast of Borneo, aiming to crank up flagging Indonesian gas output, a senior official at the country's oil watchdog said on Monday.

Indonesia, the world's top liquefied natural gas (LNG) exporter, has failed to meet its contractual commitments to traditional buyers such as Japan,
South Korea and Taiwan because of a slump in production.

"Chevron said it wanted to develop gas fields in East Kalimantan, including Gehem and Gendalo until 2012 with investment of about $6 billion," BPMIGAS chief Kardaya Warnika said via a telephone text message.

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Another BPMIGAS official, who declined to be identified, said the Gehem and Gendalo gas fields were seen as having the potential to boost gas production and help offset declining output from other gas fields in the province.

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