Jakarta. Total E&P Indonesie, the local unit of the France oil producer, has cut its oil and gas production target of the Mahakam oil and gas blocks in East Kalimantan amid low global oil prices.
Total is expected to produce 1.4 billion cubic feet of gas per day and 54,100 barrels of oil condensate daily this year, the company's spokesman Kristanto Hartadi said on Thursday.
The targets are down 17 percent and 20 percent respectively from last year's production of 1.7 billion cubic feet of gas per day and 86,000 barrel of condensates per day.
Low oil prices have forced Total to cut investment by 45 percent this year, down to $1.1 billion from last year's $1.97 billion, postponing drilling of less lucrative wells, Kristanto said. The company will drill 40 new wells this year if oil prices hovers around $50 per barrel throughout the year.
Total will not be exploring new projects this year, he added.
Total and Japan-based Inpex now operates the Mahakam oil and gas blocks in East Kalimantan. The companies contract of works on the block is set to expire in 2018.
Government officials have said it would give 70 percent of the block to state energy company Pertamina, leaving Total and Inpex to split the remaining shares.