Total sees flat output in 2010, 11

Indonesian unit of French oil, gas giant Total SA said production from Mahakam giant block in East Kalimantan is expected to reach 2.5 BCFD of gas and 92,000 BPD of condensate this year.

Total E&P Indonesie President and General Manager Elizabeth Proust told Petromindo.Com on Wednesday that gas production figure was higher than 2.34BCFD budgeted for this year.

Mahakam PSC, in which Total has 50 percent operating interest, is the biggest gas supplier to Bontang LNG plant.

Proust said production figure would be somewhat similar for next year despite the fact that a large percentage of its LNG supply contract would expire this year.

Proust said this year Total would spend US$2 billions in capex and opex for the block and the figure would remain the same for next year.

Total, together with its partner Japanese firm Inpex Corp. are desperate to get contract extension on Mahakam block, which will expire in 2017. But thus far the government has yet responded to the request. State oil and gas company PT Pertamina (Persero) is reportedly in talks to get 25 percent stake in the block before the block?s contract expire and has openly stated intention to take over the block?s operatorship when the current contract expires.

?BPMIGAS wants Total to stay in Indonesia,? said R. Priyono, Chairman of upstream oil, gas authority BPMIGAS when asked if BPMIGAS recommended that Total be given contract extension. Under the Oil and Gas Law, Minister of Energy and Mineral Resources has authority to extend PSC contract.

Beside trying to get hold on Mahakam, Total is also looking to expand its Indonesian portfolio. ?Total is constantly trying to expand Indonesian portfolio,? Proust said. The Company is currently in talks to acquire interest in ConocoPhillips?s Warim exploration block in Papua. The Company is also reportedly in talks to acquire non-operating interest in ConocoPhillips? Arafura and Amborip VI offshore Maluku. (alex)