REPUBLIKA.CO.ID, BALIKPAPAN -- Total E&P Indonesia said it is set to boost its gas production from the Mahakam Block to 1.760 million cubic feet per day (MMSCFD) in 2014.
The production target is higher than 2013's target of 1,600 MMSCFD set in the company's working plan and budget (WP&B).
"In order to achieve the production target in 2014, the company will expand the oil and gas field and maintain the productivity of old wells," company's spokesman Kristanto Hartadi, said on the sidelines of Media Visit & Gathering, here on Friday.
Kristanto said in 2014, Total E&P Indonesie will continue to adopt expansion of well service or "well intervention".
He said Total E&P will seek to offset a natural decline in productivity by developing the fields of Sisi-Nubi 2B and Peciko 7B.
The company will invest up to US$2 billion in the development of phase 2 of Sisi-Nubi and Peciko 7B , he said, adding, production is expected to start in the second half of 2014.
The most recent project developed by Total E&P is the South Mahakam of phase 3 (SMK 3) with work began in April 2013.
Development of the offshore platform of SMK 3 involves a local contractor Meindo Elang Indah.
Construction of the platform is to be completed and it would start operation in the second half of 2014 with gas production estimated to reach 80 MMSCFD.
SMK 3 could be the last project of the company in the Mahakam Block, which is the main supplier of natural gas for the Bontang liquefied natural gas plant, he said.
"We are not stopping building projects. There are a number of PODs (plans of development) proposed and are already approved by the Upstream Oil and Gas Regulator (SKK Migas), but support from the government is needed to achieve the economic level," he said.
Total E&P Indonesie will end its long contract in the Mahakam Block in 2017.
The company has indicated keen interest in renewing its contract, but the government is under pressure to hand over the block to state energy company PT Pertamina.
The government, however, is yet to make a decision on the future of the block.
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