U.S. Markets open in 39 mins.

Indonesian regulator says Chevron gas project delayed

JAKARTA, March 13 (Reuters) - Chevron's multi-billion dollar Indonesia Deepwater Development (IDD) gas project is facing a delay of up to 18 months, the country's oil and gas regulator (SKKMigas) said on Thursday.

"The IDD project will be delayed and we're currently taking steps to alleviate this," SKKMigas chief Johannes Widjonarko told Reuters in an SMS message. The current schedule for the project to go into production is 2016, he said.

However, this may be pushed back by 18 months pending completion of a tender for the project's floating production units, said a source at the regulator, who declined to be named because of the sensitivity of the matter.

Daily production from the project is expected to peak at 1.1 billion cubic feet of natural gas and 31,000 barrels of condensate.

"During 2013, the company received bids for all major contracts. A final investment decision is planned for 2014, but is subject to the timing of government approvals," Chevron said in a recent SEC filing.