Indonesia: Total Starts South Mahakam Production Ahead Of Schedule

Total announced Wednesday the start-up of its South Mahakam gas condensate project two months ahead of schedule.

The South Mahakam is part of the program being implemented to offset production decline impacting the Mahakam PSC (Production Sharing Contract).

Total E&P Indonesie (50%) operates the project alongside Inpex (50%). The project envisages a phased development of three gas condensate fields (Stupa, West Stupa and East Mandu) and two gas fields (Jempang and Metulang), which are located approximately 35 kilometers southeast of Balikpapan and 58 kilometers south of the Peciko field, with water depths ranging from 45 to 60 meters. The first phase involves the installation of three platforms and the drilling of nineteen wells.

Production is expected to ramp up to reach an average flow rate of 69,000 barrel of oil equivalent per day (boe/d), including 18,000 barrel per day of condensates at the end of 2013. Gas and liquids will be exported through a new pipeline from the Stupa platform to the Senipah onshore terminal operated by Total. Like the rest of the Group’s production in the country, a portion of the gas will then be sent for liquefaction at the Bontang plant and the other portion will be used to supply domestic clients.

According to Jean-Marie Guillermou, Total’s Senior Vice President Asia-Pacific, Exploration & Production, “This successful start-up of a new major project in the Mahakam PSC illustrates the efficient work done by Total E&P Indonesie’s teams and the Group’s commitment to continue a successful development of the Mahakam PSC despite its maturity”.