Talisman to spend C$100 million on upstream operations in Indonesia

Canadian oil firm Talisman Energy Inc. said Tuesday it would spend C$100 million (US$ = C$1.15) of capital expenditures on its Indonesian upstream operations next year in a bid to continue to focus on low cost oil and natural gas developments and monetizing its large natural gas reserves in the country.

Talisman said in a statement that it expected to complete and commission the Phase 2 expansion of its gas processing facilities at Corridor block in South Sumatra and make preparations to drill a deepwater exploration prospect in 2008.

Talisman owns a 36 percent interest in the Corridor PSC, which is operated by ConocoPhillips.

Talisman, in partnership with US oil firm Marathon Oil, was awarded Pasangkayu offshore block in Makassar Strait. The partnership pledged to conduct 2,500 kms 2D seismic and committed to drill 4 wells in the block.

In the statement, Talisman estimated that its Indonesian output (before royalties) would reach 11,000 barrels per day of oil and 230 million cubic feet per day of natural gas. (Robert)