Total to begin construction of 67-km gas pipeline for South Mahakam project

French oil and gas company Total E&P Indonesie, the largest gas producer in Indonesia, will soon begin installing the 67-kilometers gas pipeline in onshore and offshore Mahakam in Kalimantan as well as building production platform in the South Mahakam project starting at end of November 2011.

The pipeline and platform construction works would last through May 2012, being part of efforts aimed to maintain oil and gas production level from the block.

The Mahakam Block is a matured block and its production is on downward trend. The new facilities are expected to help maintain the current level. Earlier, Total said the construction of the facilities would cost around $382 million, excluding exploration spending.

Leo Tobing, Advisor to Vice President for Public Affairs and Corporate Communication at Total E&P Indonesie, said that South Mahakam offshore project is targeted to commence production in May 2013 with target volume of 250 MMSCFD.

?As for South Mahakam project, we will build 3 platforms and install pipeline with a length of 67 kilometers. The offshore facilities should begin production in first quarter 2013,? Leo was quoted by Bisnis Indonesia as saying Friday.

He expects the three platforms will be installed in April-May 2012, followed by drilling activities. There will be 6-8 wells drilled surrounding the platforms. The utilization of local content is quite high at 60 percent, said Leo.

The 24-inch diameteter pipeline will stretch from offshore Balikpapan to Senipah village in Samboja subdistrict, Kutai Kartanegara regency. The three offshore platforms are being fabricated by Nippon Steel Construction Indonesia (NISCONI) in Batam and Pendingin, East Kalimantan. (*)