Indonesia: Total Buys Stakes In Three Deep-Offshore Exploration Blocks

Total said Thursday it has signed agreements with Talisman Energy to farm-in into three deep-offshore exploration blocks in the Makassar Strait in Indonesia.

Total has acquired from Talisman a 50% interest in the Sageri Production Sharing Contract (PSC), Talisman now holding the remaining 50% interest, a 35% interest in the South Sageri PSC, alongside Talisman (35%) and PTTEP (30%), and a 20% interest in the Sadang PSC, alongside Talisman (40%) and PTTEP (40%).

The three blocks operated by Talisman are located in the offshore South Makassar Basin, in water depths ranging from 400 to 2,000 metres. They cover a total area of 10,693 square kilometres. The work commitments during the exploration period include acquiring 2D and 3D seismic as well as drilling two exploration wells. The first exploration well is planned to be spudded in the Sageri block by the end of 2011.

“With these acquisitions, Total pursues its strategy to further expand its acreage in new exploration areas, namely in deep offshore, and to continue investing in Indonesia in line with the Government of Indonesia’s efforts to tap potential hydrocarbon reserves of the country,” said Jean-Marie Guillermou, Senior Vice-President Asia Pacific, Exploration and Production. “In the Makassar Strait, we will contribute with our deep-offshore experience and, if a discovery is made, benefit from potential synergy with our existing operations in the area.”

Total is present in Indonesia through its affiliates, Total E&P Indonésie (upstream) and PT Total Oil Indonesia (downstream), Total has been present in the country since 1968, with operations concentrated in the Offshore Mahakam block in East Kalimantan. Total is the largest gas producing operator in Indonesia and currently contributes to around 80% of the Bontang LNG plant supply. Indonesia represented 7.5% of Total’s production in 2010, amounting approximately to 180,000 barrels of oil equivalent per day.