Total E&P Indonesie will stop developing new projects to maintain natural gas output at the Mahakam block offshore East Kalimantan because of uncertainty over the extension of the block’s contract.
Beyond three existing developments including South Mahakam 3 that will begin production in 2015, the unit of France’s biggest oil producer won’t propose any new projects to the government, Kristanto Hartadi, the company’s spokesman in Jakarta, said by e-mail yesterday.
Confusion over who will operate Mahakam, which accounts for 30 percent of Indonesia’s natural gas production, risks reducing output and cutting supply to the Bontang liquefied natural gas plant, Kristanto said. The block pumps 1.76 billion cubic feet of gas and 66,400 barrels of condensate a day, he said.
Total and its partner, Japan’s Inpex Corp., proposed to operate the block for five years with a reduced stake after their current contract expires in 2017, Total said on July 11. An Indonesia government official said in November 2011 that it wanted PT Pertamina, the state oil and gas company, to operate the block.