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Total sees slower H2 output after satisfying H1
After higher-than-expected oil and gas output in the first half (H1) of this year, Total E&P Indonesie, the local unit of the French oil giant, forecast slower production in the remaining six months of the year
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fter higher-than-expected oil and gas output in the first half (H1) of this year, Total E&P Indonesie, the local unit of the French oil giant, forecast slower production in the remaining six months of the year.
Total E&P Indonesie's gas production reached 1,740 million standard cubic feet per day (mmscfd) from January to June this year, already surpassing the 1,660 mmscfd target for the year, spokesman Kristanto Hartadi said on Monday.
The contractor's oil and condensate output touched 69,800 barrels per day (bpd) in the first half of the year, which is also higher than its full year target of 62,900 barrels per day.
'We are working hard to maintain production at at least the same level as last year,' Kristanto said, referring to Total E&P Indonesie's 1,760 mmscfd gas, 67,000 bpd oil and condensate output in 2013.
Many fields have matured in Indonesia, a former member of the Organization of Petroleum Exporting Countries (OPEC), which is struggling to put the breaks on its declining production.
'For the second half [H2], there will be a slight decline due to maintenance work. One [facility] that will be shut down is a processing unit in Senipah [in East Kalimantan] around August. The impact on productivity has already been calculated,' Kristanto said, declining to disclose the company's estimated reduction in output due to the closing down of the facility.
Total E&P Indonesie is currently the third-largest contractor in terms of oil output in Indonesia.
The company allocated US$2.5 billion each year to fund mining activities ' including drilling of a number of wells, boosting output at existing wells and performing seismic surveys ' as part of its attempts to maintain productivity.
The government has targeted oil production to reach 818,000 bpd this year, lower than the initial target of 870,000 bpd, according to the state budget. In the first semester of the year, average oil output was 797,000 bpd, still below the full year target.
Meanwhile, 6,897 mmscfd gas was produced in H1, and the government's target was set at 6,853 mmscfd, according to figures from the Upstream Oil and Gas Regulatory Task Force (SKKMigas).
SKKMigas secretary Gde Pradnyana has said that additional production from the Banyu Urip field in the Cepu block in Central Java would determine whether or not the country would be able to achieve the target.
'The commissioning [of additional production from Banyu Urip] will start in August. We hope to see at least 10,000 barrels of additional output,' Gde said.
Banyu Urip at Cepu block is currently developed by PT Pertamina EP Cepu and Mobil Cepu Ltd. The project has the capacity to produce around 29,000 bpd oil. Its peak production is estimated to reach 165,000 bpd, which is expected to occur in the third quarter of next year.
