Total set to increase gas production

French oil giant Total (formerly TotalFinaElf) is set to increase natural gas production from its East Kalimantan Mahakam gas block from 2.5 billion cubic feet (BCF) currently to 2.75 BCF within the next few years.

?Total is set to invest US$1 billion per year from 2002 to 2005 in capital spending to achieve production increase target. The fund will be used mainly to develop giant Peciko and Tunu gas fields,? said Total chairman and CEO Thierry Desmarest in an interview Friday.

Desmarest said the increase in production was necessary to offset expected production decrease from another East Kalimantan gas producer VICO Indonesia.

Total currently supplies 65 percent of Bontang LNG plant natural gas requirement, and he expected the number will increase to 70 percent in the next few years.Total is the operator and 50 percent working interest holder of Mahakam PSC, with Japan's Inpex holds the remaining balance.

Desmarest said that Total would continue to increase presence in Indonesia by looking prospective exploration areas, including taking part in 11 exploration blocks the government is currently offering. He also said the better split the government is offering for new exploration blocks would provide incentive for contractors to invest in Indonesia. (alex/godang)