Total makes gas discoveries off E. Kalimantan

French energy giant Total SA announced on Wednesday two new gas discoveries in the southern part of the offshore Mahakam PSC block, some 45 kilometres from Balikpapan, East Kalimantan.

According to the company, these discoveries lie a few kilometres from the Stupa field and strengthen the potential of this field. A development plan for the Stupa field was submitted in July 2007 to the Indonesian authorities.

Both drilled in about 60 metres water depth, the two wells East Mandu-1 and West Stupa-1 respectively encountered 164 and 72 metres of good quality gas bearing reservoirs.

These two discoveries are planned to be developed in connection with the development of the Stupa field which shall be sanctioned in the coming months for an entry into production expected by 2012, the company said.

The drilling of the well East Mandu-1 was particularly sensitive regarding the control of pressures and fluids. Its successful completion was allowed by Total’s technological capacities and the Group’s experience gained as operator of the offshore Mahakam block for the last 36 years, the company said.

Total is operator of the Mahakam block with a 50% interest alongside partner INPEX (50%).

Total through its Indonesian unit Total E&P Indonesie is the country’s leading gas producer which supplies 80% of the feed gas for the Bontang liquefaction plant from the Mahakam block with the Tambora, Tunu and Peciko gas fields. Total operated nearly 2.6 billion cubic feet per day of gas production from the Mahakam block in first-half 2007. Output will be maintained at this level at least through the early years of the next decade, the company said.

The Mahakam block is also a top-tier oil and condensate producer, with output of nearly 90,000 barrels per day in the first half 2007.(godang)