Talisman reports higher output from RI operations

By Romel S. Gurky

Canadian oil and gas firm Talisman Energy reported Tuesday that production from ongoing operations in Indonesia during the second quarter of this year increased to an average of 74,000 boe/d from 71,000 boe/d in the first quarter.

The second quarter output this year was also higher when compared to 72,000 boe/d in the same quarter of last year, the company said in a quarterly report.

Talisman has a 36 percent interest in the ConocoPhillips-operated Corridor block PSC in South Sumatra, a 3.06 percent interest in Tangguh LNG project in West Papua and 25 percent interest in Jambi Merang, Jambi.

The company said that the higher production was attributable to stable gas demand and the completion of facility upgrade projects at Corridor in 2013. Two infill wells at Corridor are expected to spud later this year.

At the Tangguh LNG project, the Fujian pricing contract (applicable to one-third of Tangguh sales) was successfully renegotiated, resulting in a price increase for this year and escalating annually through 2017, the company said.

At Sakakemang, Talisman expects to begin a 2D and 3D seismic program later this year and drill an exploration well in 2015.

In May of this year, this portal reported that Talisman has obtained approval from the government of Indonesia to acquire a 90 percent working interest in the Sakakemang PSC, located between the company?s high-margin Corridor and Jambi Merang PSCs.

The company said at the time that a seismic program on the block is expected to commence in the third quarter of this year.

According to Petromindo.Com data, the exploration block was awarded in 2010 to a local company PT Cakra Nusa Darma.

Editing by Reiner Simanjuntak