Total cuts investment in Mahakam by 10-15%

Total E&P Indonesie, a subsidiary of French oil and gas firm Total SA, will cut down by 10-15 percent its planned US$2.4 billion investment this year in Mahakam block due to the current drop in global oil price, reports said on Wednesday.

Koran Tempo reported that Total will also reduce drilling program this year to cover around 100 wells from the initial target of 120 wells as part of cost-saving measures.

The paper quoted Arividya Noviyanto, Vice Presiden for Finance, HR, General Services, and Communications at Total E&P Indonesie, however, as saying that despite the reduction in investment production target will not be reduced.

The paper said that in the company?s revised work and budget plant, production target for the gas-rich Mahakam block in East Kalimantan is to be maintained at an average of 1.7 bcfd. Meanwhile, condensate output is to be raised from 62,000 bpd to 65,000 bpd.

Total?s contract in the Mahakam block is set to expire in 2017. (*)