Total gets green light for new development in Mahakam
Wednesday, May 1 2013 - 01:48 AM WIB
The company said in a press statement on Tuesday that the approval, the recommendation to award approval (RTA) from the SKK Migas, is a key milestone to allow the start-up of the development of 2 new gas and condensate fields in accordance with the Plan of Development (POD) approved on 3rd November 2011.
The 2 new fields are located in the southern part of the Mahakam PSC in 47 meter of water depth, approximately 35 km Southeast of Balikpapan and 58 km South of Peciko field.
The project, phase 3 of the development of the South Mahakam area, consists of the installation of an additional wellhead platform and the drilling of 7 development wells with a tie-in to the East-Mandu platform which had been installed as part of earlier phases of the South Mahakam area development through a 12?-7.7 km pipeline.
The overall development costs are estimated in the POD at US$ 306 million (US$ 185 million for drilling and US$ 121 million for facilities).
The start-up of these 2 new fields is expected in 2nd half of 2015 and will contribute to maintain the 250 MMscfd production capacity of the South Mahakam area.
The new projects have further exemplified the tremendous efforts by Total E&P Indonesie and its partner INPEX to optimize production of the Mahakam PSC and slow down its decline.
The Phase 1 and 2 of the South Mahakam development started production in October 2012, 2 months earlier than planned, and consist in the development of the new Stupa and East Mandu fields with 3 new wellhead platforms (Main Stupa, West Stupa and East Mandu) and the drilling of 19 development wells.
Phase 1, 2 and 3 gas and liquids production is exported through a 24?-67 km pipeline from the Stupa platform to Senipah onshore terminal, operated by Total E&P Indonesie.
Editing by Benget Besalicto Tnb