Total's Indonesian Unit to Invest $8B in Gas

AFX News Limited / rigzone - 2006-12-21 09:48:09

12/20/2006 (AFX News Limited / rigzone)PT Total E&P Indonesie, a unit of France's Total, is planning to invest around US$8 billion from 2007 to 2015 in order to maintain current levels of gas output from the Mahakam Block in East Kalimantan, company spokesperson Ananda Idris said.

"It will be good enough if we are able to maintain our output at the current level in coming years given that gas firms are generally experiencing depleting production," Idris told XFN Asia.

He said the company will focus on developing three fields in Mahakam Block -- Tunu, Peciko and Sisinubi blocks.

Idris said of the US$8 billion investment, Total may earmark US$1.6 billion for capital expenditure next year in order to keep output at the present level of 2.6 billion cubic feet a day through next year.

All the natural gas from Total's fields is supplied to the nearby liquefied natural gas (LNG) processing plant in Bontang.

The Bontang LNG plant is 50 percent owned by state oil and gas firm PT Pertamina. The remaining 50 percent is held by a consortium comprising Total and Chevron with 35 percent, and Japan Indonesia LNG with 15 percent.