Total Set To Produce 280 MMSCFD Of Gas From South Mahakam

Balikpapan, E Kalimantan, Jan 21(ANTARA) - Total Exploration and Production (E&P) Indonesie said it is set to produce 280 million metric standard cubic feet per day (mmscfd)of gas from the South Mahakam field off Balikpapan, East Kalimantan. The production target is set for the end of this year, Arividya Novianto, Vice President Finance, Human Resources, Communication, and General Services of the French company, said here last weekend. The production from the new gas field, is equivalent to 69,000 barrels of oil per day including 18,000 barrels of condensate, Arividya said. The field was commissioned last week by East Kalimantan Governor Awang Faroek Ishak with a ceremony held at the Senipah oil and gas processing terminal. Currently with two wells, the gas field produces around 100 mmscfd, Novianto said, adding production began on Oct 28 last year. In order to reach the production target, Total Indonesie will drill more wells to increase the number of producing wells to 19 units. The two wells in operation at present are located at the Main Stupa platform, 35 kilometers southeast of Balikpapan. Gas from the two wells are channeled through 24 inches pipes on the seabed as deep as 60 meter to the Senipah terminal, 67 km away to northeast. "We are in the process of drilling more wells with 3 jack up rigs," Novianto said. Total has invested US$832 million to develop the South Mahakam field , he said. He said this year Total will set aside US$2.3 billion for investment to expand the entire Mahakam Block. Elizabeth Proust, President Total E&P Indonesie, said the South Mahakam field came on stream two months earlier than scheduled. Originally it was expected to start operation only this month, Elizabeth said. Total began operation in the country in 1974 developing Bekapai offshore oil field. Currently Bekapai still produces around 5,600 barrels of oil per day. In 1975 , Total exploited the Handil mangrove swamp and nine years later or in 1984 it discovered gas in Tambora in the swampy area of Delta Mahakam, and in 1990 it found the giant gas reserve in the field of Tunu . The Mahakam block is jointly owned by Total and Japan`s Inpex Corp with Total as the operator. Total`s contract in the Mahakam Block will end in 2017 , but Total is keen on extending the contract with promise to increase investment. The government, however, indicated it would give the contract to state oil and gas company PT Pertamina. Pertamina, the East Kalimantan provincial administration and the Kutai Kartanegara regency, where the block is located are reported to hold the majority 51 percent stake. Pertamina itself has said it wants to take over the operation of the block that feeds a big liquefied natural gas (LNG) plant in Bontang, East Kalimantan. Total may still be involved but Pertamina is to be the operator with the majority shareholder, an official said. Elizabeth said Total will accept the final decision of the government but "off course we hope a greater role."