Total to spend $2.2 billion in Indonesia

Offshore staff

JAKARTA, Indonesia -- Total E&P Indonesie plans to spend $2.2 billion on its Indonesian operation next year, up from $1.8 billion in 2006.

Company president Philippe Armand says the 2007 expenditure includes $1.6 billion for upstream development projects, including $400 million for the Sisi and Nubi fields, which are being developed in the Mahakam block off East Kalimantan, Borneo.

Total will spend $500 million on operations and $100 million to maintain the current level of exploration in the country, where it has 2,000 hectares (4,042 acres) of exploration and production area, including the Handil, Bekapai, Peciko, Tambora, and Tunu fields which supply 66% of the gas requirements to Indonesia's Bontang LNG export plant.

The Sisi and Nubi fields will produce 350 MMcf/d of gas to help Total maintain production at 2.64 bcf/d in Indonesia.

Total is planning for 120 wells next year, four more than this year.

Total Indonesie's long-term strategy is to invest $8 billion over the next nine years to exploit its 13 tcf of gas reserves in the country, Armand says.

12/21/2006