2006 in review
In Southeast Asia, Talisman commenced work on the
40,000 boe/d Northern Fields development project
in Malaysia/Vietnam, with first oil expected in the
third quarter of 2008. In Vietnam, Talisman’s first
exploration well on Block 15-2/01, Hai Su Trang,
was successful, testing at 14,863 bbls/d of oil.
In Indonesia, work continued on the Suban 2 gas expansion project in the Corridor PSC, including installation of two new gas trains, additional pipeline and infrastructure. The Company also participated in a gas well (Suban 10), which is currently on production at 150 mmcf/d (gross sales gas). First gas sales to West Java are expected in mid-2007.
- natural gas production averaged 292 mmcf/d, an increase of 3% from 284 mmcf/d in 2005;
- liquids production averaged 51,582 bbls/d, an increase of 45% from 35,476 bbls/d;
- exploration and development spending totaled $331 million;
- Talisman drilled 31 successful oil and gas wells, including three exploration wells;
- operating costs averaged $4.47/boe, up from $2.94/boe in 2005, mainly due to increased fuel costs, an extended turnaround (weather related) and higher cost properties acquired in the Paladin transaction;
- in Malaysia, the Bunga Tulip development came onstream at 4,000 boe/d in the fourth quarter of 2006;
- the Song Doc development in Vietnam was approved and sanctioned;
- construction of a new third party pipeline to transport Corridor gas to West Java commenced;
- first sales of natural gas from Southeast Sumatra to Perusahaan Listrik Negara occurred in the second quarter of 2006; and
- a PSC on the Pasangkayu deepwater exploration block was signed in September 2006.
