Total E&P to return two oil, gas blocks to govt

After failing to make hydrocarbon findings, PT Total E&P Indonesie has decided to return two oil and gas blocks including the South West Bird?s Head Block in West Papua and the Southeast Mahakam Block in East Kalimantan, Kontan reported on Thursday.

The paper quoted Total E&P Indonesia Head of Media Relations, Kristanto Hartadi as saying that the company was currently making preparations to return the two blocks to the government.

Total E&P Indonesia holds a 90 percent interest in the South West Bird?s Head Block, with the remaining 10 percent held by PT Indika Energy. At the Southeast Mahakam Block, Total holds a 50 percent interest, with the balance held by Inpex.

Total claimed it has spent US$40 million to finance drilling program at Anggrek Hitam IX well in the South West Bird?s Head Block, and $60 million at Tongkol well in the Southeast Mahakam Block.

Elsewhere, Kontan said that Santos Indonesia has also decided to return its 10 percent participating interest at three CBM blocks including Air Komering, Belida and Ogan Komering I, all in South Sumatra, to operator PT Sugico Graha.

Santos spokesman Hartono was quoted as saying that the company wants to focus on conventional oil and gas due to the complexity of CBM development. (*)