By OGJ editors
HOUSTON, Aug. 8 -- Total SA has signed an agreement with Indonesia's PT Easco East Sepanjang to farm into offshore East Sepanjang Block, northeast of Java, with a 49% working interest. The group also has the option to acquire an additional 41% interest at a later date.
East Sepanjang, which lies in 400-1,000 m of water, covers 5,100 sq km. A seismic survey will be conducted by yearend and an exploration well drilled in 2007. Total will assume operatorship after the first 3 years firm commitment exploration period.
Total, operating in Indonesia since 1968, is the country's leading gas producer and supplies more than 70% of the feed gas for the Bontang liquefaction plant on behalf of a 50-50 Total-Inpex joint venture. The JV operates Mahakam Block, which contains the Tambora, Tunu, and Peciko gas fields.
The JV produced more than 2.6 bcfd from Mahakam in the first 6 months of this year. Output will be maintained at this level at least through 2010.