Total farms in E. Java exploration block

French oil giant Total SA said Thursday it had signed an agreement with Australia's Santos to acquire a 39.9 percent interest in North Bali 1 PSC offshore East Java with the right, subject to certain conditions, to obtain a further 10.1 percent.

Water depths range from 100 to 970 meters in the 3,450-square-kilometer exploration block, originally awarded to Santos subsidiary, Santos (Nth Bali I) Pty Ltd, in October 2003 under a tender issued by the Indonesian government.

2D seismic was shot last January and an exploration well is scheduled to be drilled by year-end. Total subsidiary, Total E&P North Bali I, will become operator after the first exploration period.

The new agreement is in line with Total's strategy of expanding its deep offshore operations, in particular in a region where it is already a major operator, said total in a press statement.

Total is the leading gas producer in Indonesia and supplies more than 65% of the gas liquefied at the Bontang liquefaction plant. (alex)