Total?s South Mahakam project reaches 90% completion

Total E&P Indonesia (TEPI), a subsidiary of French enegy giant Total SA, said the development of the South Mahakam Project Phase 3 (SMK 3) in Mahakam PSC in East Kalimantan has reached 90 percent completion and the firm will soon start driling development wells there, according to an official of the firm.

?The development of wellhead platform at SMK 3 has now reached 90 percent completion and is going to be completed soon. On April 21, a drilling rig will arrive at the site for the first drilling,? TEPI?s Project Manager of SMK 3 Construction Division Alfie Hujiansyah was quoted by Bisnis Indonesia as saying on Thursday.

He said investment for the facilities of the project amounts to US$130 million. The amount of investment does not include costs for the driling. According to the newly-released Indonesian Oil & Gas Book 2015 published by Petromindo, the overall development costs of the project, based on its Plan of Development, are estimated at $306 million, comprising $185 million for drilling and $121 million for facilities.

According to the back, there will be seven development wells to be drilled in the project. All are loated in the Jempang and Metulang fields.

?It takes between one to four months to drill a well. After the drilling, we shall start production,? Alfie said.

According to Alfie, the SMK-3 facilities are designed with a production capacity of 150 mmscfd, but the firm will maintain the output at 80 mmscfd.

There are several othe fields in South Mahakam complex that have come into production, namely Main Stupa, West Stupa and East Mandu, which were developed under the names of SMK-1 and SMK-2. The SMK-3 project will be tied in to East Mandu field, according to the Indonesian Oil & Gas Book 2015.

According to Alfie, the SMK-3 project is the last major project of TEPI in Mahakam block prior to the expiry of the block?s contract in 2017. (*)