Talisman oil, gas production in Indonesia down in Q1
Wednesday, May 2 2001 - 07:00 AM WIB
Canada's largest independent oil and gas company Talisman Energy Inc. announced Tuesday its Indonesian oil and gas production was down in the first quarter of the year.
According to the company's quarterly report made available to Petromindo.com, the company produced 18, 756 barrel of oil per day (bpd) and 96 million cubic feet per day (MMCFD) of natural gas in the first quarter of the year, as against 20,827 bpd and 114 MMCFD, respectively in the corresponding period of last year.
The report said the decrease in oil production was due to natural decline, while the drop in natural gas production was due to the decrease in its interest in the Corridor production sharing contract (PSC) block in southern part of Sumatra, operated by Canadian firm Gulf Indonesia Resources.
In January 2001, it said, state owned oil and gas company Pertamina paid up its carried interest in Corridor, resulting in the decrease in Talisman's interest in the block to 36 percent from 40 percent.
Its gas operating costs decreased slightly to US $0.35 per MMCFD while crude oil operating costs increased to US $6.89 per barrel as the result of lower volumes, the report said.
Talisman spent US$ 16,5 million in exploration and development in Indonesia during the quarter, most of which was used to finance the construction of the Corridor expansion.
The report also said development drilling started at the Ogan Komering joint operating body (JOB) contract area in South Sumatra in the first quarter of the year and the first well now produces 800 bpd.
The report also said the company and its partners drilled two exploration wells in Corridor, that is Suban 5 and Suban 6, in the first quarter of the year.
Suban 5 was flowing at the rate of 15 MMCFD but the well was shut down due pressure build-up.
The company and its partners plan to drill two additional wells in Corridor, that is Suban-7 and Suban-8 appraisal wells, later this year.
Corridor is now supplying gas to PT Caltex Pacific Indonesia's oilfields in Duri, Riau province and will become one of the gas sources for the future Sumatra-Singapore pipeline.
Aside from Corridor and Ogan Komering, Talisman also has interest in the Tanjung Raya block in Kalimantan, the Madura PSC in East Java, and the Jambi enhanced oil recover (EOR) contract area in Jambi. (alex)