Total seeks partner for two exploration blocks

By Febry Silaban

French firm Total EP Indonesie (TEPI) is in the process of farming out interest in two exploration blocks, offshore East Kalimantan, namely the Telen block and the South Sageri block, according to a senior official of the firm.

?We were looking for strategic partner in terms of financial or competence,? Vice President of Geosciences and Reservoir of TEPI, Noor Syarifuddin told Petromindo.com.

He explained that TEPI will retain majority and operatorship in the blocks if the would-be strategic partner comes with the financial resources, but is willing to release the operatorship and majority status to partner which has the necessary competence.

Noor estimated that the drilling cost in the Telen block to reach about US$150-200 million per well, while in South Sageri approximately $80 million per well.

TEPI Vice President of Corporate Communication, HR and Finance Arividya Novriyanto added that Telen is a challenging area, located in deep water. ?That?s why we are looking for partner. We are evaluating the prospectivity of the block,? he said.

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 TEPI. The block is 100 percent owned by TEPI.

Whereas, the South Sageri block is located in the southeastern part of the Makassar Strait, west of the coast of Pangkajene in South Sulawesi, and covers an area of 3,889 sqkm in water depths ranging from 800 to 1,800 meters. Thai oil and gas firm PTTEP and Canadian oil and gas firm Talisman Energy transferred all of its interest in the South Sageri block to TEPI, so the block is now 100 percent owned by TEPI.

President Director/GM of TEPI Hardy Pramono said earlier that his company plans to drill an exploration well in the two blocks next year.

Editing by Reiner Simanjuntak