The company wants to hear a definite decision as it concerns a big investment to be made.
Jakarta (ANTARA News) - French energy company Total EP Indonesie said it hopes the government will soon announce its decision on its contract, which will expire in 2017 for the Hambalang gas block.

Total Indonesie has repeatedly said its wanted to renew its contract which will expire in 2017, but the government has indicated it would hand over the operation of the gas block to state oil company PT Pertamina.

Pertamina itself has said it is keen on taking over the operation of the gas block that feeds the Bontang liquefied natural gas (LNG) in East Kalimantan.

Total spokesman Kristanto Hartadi said here on Thursday the company wants to hear a definite decision as it concerns a big investment to be made .

Total has said it would invest more in the block if its contract would be renewed.

"Without clear status investment could decline," Kristanto said, adding if investment declines, production would also decline.

He said Total wanted to remain as the operator of the gas block for a 3-5 years transition after 2017 before Pertamina will take over.

He said Total plans to invest US$2 billion in 2013 as much as it has invested in 2012 in the block, but in 2014 additional investment would depend on the final decision of the government on its contract.

Kristanto said the block has come to a point when productivity is on the decline, therefore it need extra efforts to maintain the production level.

The production of the block would fall as much as 50 percent per year without doing anything to prevent the fall, he said.

Total, however, has continued effort to slow the production fall to not more than 15 percent, he said.

In 2011, the gas production of the block averaged 2,500 million cubic feet per day (MMSCFD), but in 2012 the production shrank to 1,750 MMSCFD.

The production is feared to fall further to as low as 1,600 MMSCFD by the end of 2013 despite additional production of 170 MMSCFD from the Peciko 7B field and Sisi Nubi 2B and 120 MMSCFD, in addition to 280 barrels of condensate per day from Peciko 7C.

"The fields would be on stream in November- December in 2013," Kristanto said. (*)

Editor: Heru Purwanto
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