Planning: Total maps spending for 2010 in Indonesia
- Halliburton scoops up $122m Total job
- Trio joins race for South Mahakam turnkey deals
- BPMigas calls for extension of PSCs
- BPMigas backs block extensions
- Total focus on Indonesia bids
- Mahakam flows take a dip
- South Mahakam tender draws interest
- Total eyes options for Bontang feedstock
- Total to give Pertamina Mahakam bite
Total plans $2bn Mahakam spend
French giant Total's Indonesian unit is set to spend $2 billion on the Mahakam Block, in East Kalimantan, an official from energy watchdog BPMigas said today.
"BPMigas has not approved it yet, because BPMigas will study the spending by Total in 2010," the official, who declined to be named, told Reuters.
The official said Total wanted to maintain its natural gas production from the block at 2.5 billion cubic feet per day.
A Total official declined to comment on spending plans for 2010.
However, in a statement released to the Indonesian parliament today, Total said it estimated it would spend about $2.05 billion in 2010.
"There are development projects in South Mahakam which will begin next year," the statement said.
Total said it produced 2.5 Bcfdthis year compared with 2.6 Bcfd in 2008.
The company also said it produced 97,200 barrels per day of condensate and oil so far this year, up from last year's 96,000 bpd.
Total and Japanese player Inpex each hold a 50% in Mahakam, which supplies most of the gas for Indonesia's Bontang liquefied natural gas plant.
Total has asked Jakarta to extend its operating contract for the block, the Reuters report added.
The contract expires in 2017 and negotiations on an extension began last year.
State oil company Pertamina has said it is interested in taking a stake in Mahakam.
Separately, Indonesia signed a 15-year agreement to supply 125,000 tonnes of LNG per year to Tohoku Electric Power today.