Total to acquire interest in block near Java

Aug. 8, 2006
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.

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.