TotalFinaElf to spend $3 billion in Indonesia in three years

French oil giant TotalFinaElf said on Tuesday that the company, together with its partner Japan?s Inpex would have annual spending of US$1 billion in Indonesia for three years in a row starting 2002.

The annual total spending of $1billion would be mainly invested to build production facilities, installing compressors to boost gas transportation capacity, drilling new and infill wells and building gas gathering station in Tunu gas field and developing gas fields, said TotalFinaElf E&P Indonesie president and general manager Roland Festor.

Festor said the spending would be necessary to maintain level of production above 500,000 barrels of oil equivalent per day.

According to Festor, TotalFinaElf?s share to supply gas to Bontang liquefied natural gas (LNG) plant would increase starting next year. Currently, TotalFinaElf supplies 60 percent of natural gas requirement of the 8-train Bontang LNG plant. The remaining gas supply come from Unocal Indonesia and Vico Indonesia.

TotalFinaElf E&P Indonesia, which operates oil and gas fields in East Kalimantan, is the country?s largest gas producer.

Festor said TotalFinaElf is still looking to further expand its upstream business in Indonesia, especially in East Kalimantan. He said TotalFinaElf was still studying the offer of 17 new exploration blocks that are being offered by the government this year.

Festor played down security factor that many feared could be a major obstacle for investment decision in oil and gas sector.

?We have no major security concern in Indonesia or in East Kalimantan and we will continue to invest in East Kalimantan,? said Festor. (alex)