TotalFinaElf to drill Donggala oil block in 2002

Friday, December 21 2001 - 03:42 PM WIB

French energy company TotalFinaElf as quoted by Reuters said on Friday it would begin drilling in its Donggala oil and gas block, which Indonesia awarded last month, some time in 2002.

"We are currently in preparation for drilling...(and) are optimistic there will be hydrocarbon reserves there, especially natural gas," a Total official told Reuters.

"The gas is very important for Total to feed future liquefied natural gas (LNG) plants in East Kalimantan, if other reserves to the plants run out," he added.

The Total official said Indonesia's state oil company Pertamina had eight LNG plants in Bontang, East Kalimantan and Total was one of the companies that supplied the natural gas to the plants.

Indonesia is the world's biggest LNG exporter with more than 20 million tonnes a year. The main buyers are Japan, South Korea and Taiwan.

Indonesia awarded Total the 3,800-square kilometre offshore Donggala block in the Makassar Strait in November, from among three companies that were bidding for it.

Indonesia, Asia's only OPEC member, produced 1.1 million barrels per day (bpd) of crude oil and 130,000 bpd of condensate in November although the 2002 budget assumes oil production of 1.32 million bpd. (*)

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