Total keeps trying to slow down production decline

By Godang Sitompul

Amid uncertainties over its contract extension after 2017, Total EP Indonesia (TEPI) said that its Mahakam Block had been in production decline during the last few years, but it was trying to arrest the trend by conducting well intervention, well drilling, and accelerating the development of other wells.

?Production decline is already predicted, although the rate is faster this year. But we try to slow down the rate by conducting well intervention, well drilling, and accelerating the development of other wells,? Arividya Noviyanto, TEPI?s Vice President for Human Resources and Corporate Communications, said on Tuesday.

He said that its South Mahakam Project, located in the southern part of the Mahakam Block, would enter production phase in 2013, while the Sisi Nubi 2 and Peciko 7b would start production in 2014. ?This will partially compensate the production decline in other fields of Mahakam block,? he added.

TEPI hoped there would be a clarity this year on who will own and operate the Mahakam Block after its contract on the block expires in 2017, he said.

He said TEPI will meet its contract to deliver LNG to West Java FSRU in Jakarta Bay. However, due to the delay of the start of the shipment, it may not supply all the 23 cargoes as planned.

Editing by Johannes Simbolon