France's oil giant Total expects to spend $8 billion over the next nine years to tap its remaining reserves in Indonesia
France's oil giant Total expects to spend $8 billion over the next nine years to tap its remaining reserves in Indonesia and supply the nation's largest liquefied natural gas plant in Borneo.
Fields of Total E&P Indonesie and partner Inpex Holdings Inc., which produce enough to meet 40 percent of Japan's demand, have about 13 trillion cubic feet of reserves left after pumping 10 trillion cubic feet since starting up in the 1980s, Total Indonesie President Philippe Armand said in Balikpapan, East Kalimantan province, yesterday.
"Reserves is an economic concept,'' Armand said. "If the price is down, if the profit isn't shared with the companies, they're not going to invest.''
Total will start producing gas from two new fields, Sisi and nearby Nubi, next year to slow the inevitable decline in output as other fields age, he said. The company expects to ship about 300,000 barrels of oil equivalent a day in 2015, compared with about 560,000 barrels oil equivalent a day at present, Total said in a presentation to journalists.
Still, the project will last for a ``generation to come,'' Armand said.