Total Begins South Mahakam Gas Project

French oil major Total announced Wednesday that it has started up its South Mahakam gas condensate project in Indonesia two months ahead of schedule.

Total E&P Indonesie operates the South Mahakam project, with a 50-percent interest, alongside Inpex (50%). The project – which is part of a program being implemented to offset production decline affecting the Mahakam production sharing contract – envisages a phased development of three gas condensate fields and two gas fields.

The first phase involves the installation of three platforms and the drilling of 19 wells.

Production is expected to ramp up to reach an average flow rate of 69,000 barrel of oil equivalent per day, 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.

Jean-Marie Guillermou, Total's senior vice president for exploration and production in the Asia-Pacific region, commented in a company statement:

"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."



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