Total?s Peciko field project to help lift Mahakam gas production
Tuesday, December 20 2011 - 04:39 AM WIB
?Total E&P?s production should recover after the Peciko 7A project is completed in next two to three years,? Rudi Rubiandini told Petromindo.com
The Peciko field is located in the offshore Delta Mahakam, about 25 kilometers to the southeast of Senipah with water depth measuring between 30 to 50 meters.
The Mahakam block is currently Indonesia?s largest gas producer with production of around 2.4 BCFD, supplying gas to Bontang LNG plant. However, gas production at the Mahakam block has tended to decline as the capacity of gas reservoir is not as expected, said Rudi.
Rudi said this year, the Mahakam PSC?s liquefied natural gas (LNG) production dropped by an equivalent of 8 cargoes. The gas production from existing fields is expected to continue to decline next year.
Rudi Rubiandini said the existing production has been enough to supply LNG to existing buyers. However, the extra production sold in the spot market is limited.
Next year, the LNG productions that are not contracted will be supplied to meet gas needs of fertilizer plants PT Pupuk Iskandar Muda (PIM) and floating storage and regasification unit (FSRU) West Java at the Jakarta bay.
Mahakam PSC is the biggest gas supplier to Bontang LNG plant. The French company is the block operator holding 50 percent interest with the balance held by Japan?s Inpex Corp.
Total and Inpex is currently developing the Tunu 13b, Peciko 7a as well as South Mahakam 1 and 2. The Tunu 13b field project is expected to require investment of around US$724 million, Peciko 7a field project at $530 million, $400 million for South Mahakam 1 and $377 million for South Mahakam 2. (godang/roffie)