Talisman reports lower Indonesian production in Q1

Canadian oil firm Talisman Energy on Tuesday reported a lower oil and gas production in Indonesia in the first quarter of 2005.

The production averaged 32,755 barrels of oil equivalent per day (boepd) in the first quarter of 2005, compared to 35,308 boepd in the fourth quarter of last year and 36,998 boepd a year ago.

The lower production has been expected as the firm's enhanced oil recovery contract on the Jambi block and its production sharing contract over the Jabung block expired last year.

The company said, however, its Indonesian gas production increased 15 percent over last year, averaging 155 million cubic feet per day with higher Corridor sales to Caltex and to Singapore.

Talisman also said during the first quarter of this year the expansion of facilities at the Corridor block to supply 2.3 trillion cubic feet of natural gas from the block to West Java continued. The gas will be delivered through the pipeline network being built by PT Perusahaan Gas Negara (Persero) Tbk?s pipeline project.

PT Perusahaan Gas Negara's pipeline project also continued in the period, it said.

Elsewhere, Talisman said its revenues from Indonesian operations down to C$79 million in the first quarter of this year from C$85 million in last year?s corresponding period.

Talisman holds interest in two producing areas, that is Corridor Block (36 percent) and Ogan Komering Block (50 percent) in South Sumatra.

Talisman?s interest in the Santos-operated Madura PSC was sold in December last year, according to Talisman?s annual report. (Robert)