Total sees decline in Mahakam block?s 2010 gas output

Total E&P Indonesie, the local unit of France?s Total S.A and the biggest gas producer in Indonesia, estimates that its natural gas production in the Mahakam block in East Kalimantan will decline slightly from 2.57 BCFDbillion in 2008 to 2.55 BCFD this year.

Elisabeth Proust, Total E&P Indonesie?s president director and general manager, said that the gas production was predicted to further decline to 2.38 BCFD in 2010.

?This is a difficult block with matured fields. We have to fight everyday to prevent the decline,? she told a parliamentary hearing on Thursday.

Hardy Pramono, Total E&P Indonesie?s deputy executive vice president for East Kalimantan district, said that the lower gas production would also drag down the block?s oil and condensate output.

It expects that the block?s oil and condensate production will be 86,200 BPD next year, down from 97,200 BPD this year, which is the company?s estimate for oil and condensate output for this year.

The Mahakam block is estimated to contain 11 trillion cubic feet of gas reserves. The block is currently the biggest supplier to Bontang LNG plant

Total and Japanese firm Inpex Corp. share equal interest of 50% in the block.

The block?s contract will expire in 2017. Total and Inpex are trying to get extension of the block by involving state oil and gas company PT Pertamina in the block?s partnership. (godang/kanti)