Total keeps production level at Mahakam

Total E&P Indonesie said its first quarter 2014 gas production from Mahakam block, East Kalimantan stood at 1.7 billion cubic feet (bcf) of gas per day in the first quarter of the year and an average condensate of 73,000 barrel per day (bpd).

The gas production level, according to spokesperson Kristanto Hartadi as quoted by media, was the same as throughout 2013. Meanwhile, condensate production was a bit higher compared to the 66,000 bpd throughout 2013.

?We are working hard to maintain production so that it is the same as in 2013. Without our efforts, our production rate could decline to 50 percent," Kristanto said.

Figures from the upstream authority SKK Migas showed that Total?s gas production stood at 1,672 million standard cubic feet per day (mmsfcd) in 2013, higher than its work plan of 1,495 mmscfd. Meanwhile, condensate production was at 67,800 bpd, lower than its work plan of 68,400 bpd.

For this year, according to figures from SKK Migas, Total is planning to produce 1,579 mmscfd in gas and 62,910 barrels of oil per day.

He pointed out that activities the company had planned this year to maintain production included drilling more than new 100 wells, boosting production at existing wells and conducting seismic surveys. The company allocated US$2.5 billion each year for such programs.

The Mahakam block contract was signed in 1967 and in 1997 was extended for 20 years until 2017. Total and its Japanese partner, Inpex, are currently operating the block with 50 percent interest each.

The company is seeking certainty over further extensions of the contract, which will guarantee their massive investment in the block.

An oil and gas contractor is allowed to submit a proposal for a contract extension 10 years before it expires. However, the government has yet to decide whether it will grant an extension or terminate the contract.(*)