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Banyu Urip field project in Cepu Block considered 87 percent complete

JAKARTA (Rambu Energy) – The much-waited Banyu Urip field project within Cepu Block in Bojonegoro, East Java is considered 87 percent complete. The Banyu Urip field which is operated by Mobil Cepu Ltd, a subsidiary of ExxonMobil and its non-operator partner Pertamina is expected to reach peak production of 165,000 barrels of oil per day in 2015.

Acting Chairman of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) J. Widjonarko said during a presentation to Vice President Boediono who was visiting Bojonegoro that early production facility has begun operating since August 2009 and up to now produces an accumulation of 36 million barrels of oil valued at US$3.47 billion.

At present, Banyu Urip field produce an average of 29,000 barrels of oil per day and expected to further increase by 10,000 bpd in September this year. “The production will increase in stages until reach peak production of 165,000 barrels per day in 2015,” said Widjonarko.

VP Boediono was accompanied by Chairman of the Presidential Working Unit for Development Monitoring and Control (UKP4) Kuntoro Mangkusubroto, Vice Minister for Energy and Mineral Resources (ESDM) Susilo Siswoutomo, East Java provincial secretary Akhmad Sukardi and President of MCL Jon M. Gibbs.

Based on the plan of development of the Banyu Urip project, the total investment to develop the field reaches US$2.53 billion, which comprises of US$2.19 billion to develop production facilities and US$337 million for drilling.

The development of the giant oil project is divided in five EPCs (engineering, procurement and construction), namely the development of Central Production Facility (CPF), the construction of 72-km long of onshore pipeline, offshore pipeline and mooring tower, Floating Storage Offloading (FSO) as well as infrastructure support.

The operator planned to drill a total of 49 wells, comprises of 33 production well and 16 injection well. “The drilling works have been a head of schedule,” said Widjonarko.

Widjonarko said the Banyu Urip project is important and strategic for the country’s energy security. Once the field reaches peak production, it will contribute about 20 percent of the national oil production, which is now hovering above 800,000 bpd.

Jon M. Gibbs added that the priority of MCL at the moment is to complete the project safely. His company is committed to push the project so that it can reach peak production in 2015, delayed from early plan of 2014.

Gibbs noted that MCL supports the SKK Migas drive to increase local content in the development of oil and gas projects, including the Banyu Urip field project within Cepu Block. He said the project does not only involved 5 main consortia, but also involved around 450 national sub-contractors – both local and national. Around 85 percent of the subcontractors are local companies. The project also employs 9,100 Indonesian workers, 60 percent of which come from Bojonegoro and Tuban, East Java.

“Banyu Urip field project is a world class project being developed by Indonesians,” said Jon.

Banyu Urip field was discovered in 2001. The Production Sharing Contract (PSC) was signed on September 17, 2005. MCL, a subsidiary of ExxonMobil Corporation holds 45 percent interest, Pertamina EP owns 45 percent interest and the remaining 10 percent is held by Joint Operating Body Block Cepu (BKS), which represents local governments. The Banyu Urip field is predicted to have oil reserves of 445 million barrels. (RK)

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