Total to spend $1 billion in Indonesia this year<\/p>\n
Leony Aurora, The Jakarta Post\/Jakarta<\/p>\n
Oil and gas giant Total E&P Indonesia plans to spend US$1 billion
\nthis year to boost production and make up for declining output
\nfrom other producers that supply PT Badak NGL in Bontang, one of
\nthe nation's two liquefied natural gas (LNG) plants.<\/p>\n
President director and general manager, Roland Festor, told
\nreporters on Thursday that the funds, about 10 percent higher
\nthan the $900 million it spent last year, would be used to
\nestablish nine new rigs and platforms.<\/p>\n
\"We are developing two new fields called Sisi (and) Nubi,\"
\nsaid Festor at the sidelines of the four-day IndoGas conference,
\nreferring to parts of the Mahakam oil block in East Kalimantan.<\/p>\n
The new fields were expected to start producing in mid 2007,
\nhe said.<\/p>\n
\"We'll compensate as much as possible the decline from the
\nother producers,\" said Festor.<\/p>\n
Total and two other companies -- including Unocal -- are
\nsupplying Badak NGL in Bontang, East Kalimantan.<\/p>\n
Indonesia is in dire need of new gas fields as some of the
\nexisting ones, which have been operating since the 1980s, are
\nseeing a decline in output.<\/p>\n
State oil and gas firm PT Pertamina recently announced that it
\nhad rescheduled the delivery of 51 shipments of LNG, representing
\nmore than 2.75 million tons,G to its three main buyers of Japan,
\nSouth Korea and Taiwan.<\/p>\n
Forty two of the loads were supposed to be provided by the
\nBontang plant and had to be postponed due to problems in the
\nAttaka field, operated by Unocal. The company, however, said that
\nthe damage caused by a fire in February last year had been
\nrepaired and the decline was caused by the aging field.<\/p>\n
Following the shipment rescheduling, Japan's third largest
\nenergy producer Chubu Electric Power Co. has said that it might
\nnot extend its contract with Indonesia, worrying that the country
\nwould not be able to meet its commitments.<\/p>\n
The government quickly reacted by saying that it would offer
\nlower prices to costumers that wished to continue buying LNG from
\nIndonesia.<\/p>\n
Amid the shortfall from other producers, Total is seeing a
\nrise in gas output, beating historical records on Jan. 2 with
\n2.87 billion cubic feet (bcf) per day, equivalent to 631,000
\nbarrels of oil in one day.<\/p>\n
\"Our production in 2004 is 2.4 billion bcf of gas on average
\nper day, which corresponds to 533,000 barrels per day, or 5
\npercent more than in 2003,\" said Festor.<\/p>\n
\"We expect to go to at least 2.5 bcf per day this year.\"<\/p>\n
Festor said that the production was higher than the company's
\ncommitment to Bontang and the excess would be used to compensate
\nother producers' fall in output. \"But it will not be enough to
\ncover the decline in Attaka,\" he said.<\/p>\n
Total's current operation sites cover an area of 2,000
\nhectares, with seven oil and gas fields, and 500 production wells
\nin remote areas of East Kalimantan, including Handil, Bekapai,
\nPeciko, Tambora and Tunu, supplying about 66 percent of Bontang's
\ngas requirements.<\/p>",
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"sponsor": "Okusi Associates",
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