Total plans to return Telen block to government

By Febry Silaban

Petromindo|Khalsa

Total E&P Indonesie plans to return back the Telen exploration block, offshore East Kalimantan, to the government amid the lingering oil price environment which makes the project to be less economically feasible.

?We have commitment to drill one exploration well in Telen block. But after calculating the economics, we?re better off paying the penalty rathern that drilling the exploration well,? said Vice President for Authorization Coordination, Communication, and External Affairs at Total E&P Indonesie, Agus Suprijanto, to Petromindo.com on Thursday.

He said that drilling of one exploration well at the Telen block will require investment of US$150 million-$200 million.

The Telen exploration block is located in the offshore Kutei Basin, covering an area of 2,369 square kilometers with water depths in the range of 300 and 1,000 meters and adjacent to the country?s most prolific gas producing offshore Mahakam block operated by Total E&P Indonesie. The block is 100 percent owned by Total E&P Indonesie.

Editing by Reiner Simanjuntak