Talisman sees oil and gas production down in 2001

Canadian oil company listed in New York Stock Exchange Talisman Energy Inc. said it expected to see decline in Indonesia oil and gas production.

According to the news release, the company expected to produce 18,000 to 19,000 barrels of oil per day (bbod) in 2001 as opposed to 20,000 bbod in 2000.

The company also predicted the decrease it its natural gas production from 111 million cubic feet per day (mmcfd) in 2000 to between 100 and 105 mmcfd in 2001.

The company, however, did not disclose the reason for the decline in production.

The statement also said Talisman would spend US$ 115 million in Indonesia this year, an increase of US$45 million compared to last year's capital spending. Most of the spending would be used the planned construction of a new 300 mmcfd processing plant at Corridor to supply incremental gas markets

Talisman (Corridor) ltd, a wholly owned subsidiary of Talisman Energy Inc. holds 36 percent interest in Corridor Block PSC in South Sumatra, while Gulf Indonesia Resources and Pertamina hold 54percent and 10 respectively.

The Corridor Block PSC, along with the South Jambi B Block and the Jabung Block will supply 150 million cubic feet per day (mmcfd) of gas to Malaysian oil company Petronas beginning in 2003 and increasing to a peak rate of 350 mmscfd by 2009 for a total contract period of 20 years.

Corridor Block also supplies 120 mmcfd of natural gas to Caltex Pacific Indonesia in Duri, Riau and would increase to 180mmscfd in 2003.

Talisman also conducts exploration and production activities in Jambi, Ogan Komering in Soth Sumatra, Tanjung Raya in East Kalimantan and Madura in East Java. (alex)