Increased Production of Cepu Block Hampered by Permits

The company claims the change of operations is accepted by the public.

Cepu Block Manager in East Java, ExxonMobil Oil Indonesia, is awaiting government approval for the revision of the Environmental Impact Assessment (Amdal/EIA) document Banyu Urip Field. Approval is needed to increase commercial oil production. "While waiting for our first test of production. We hope as soon as possible, "said Vice President of Public and Government Affairs ExxonMobil, Erwin Maryoto

ExxonMobil wants to increase production from 185 thousand Barrels Per Day (BPD) last year to 200 thousand bpd. Erwin assured the addition of production does not damage the environment. ExxonMobil submitted an EIA revision late last year. However, until now, there has been no decision.

According to Erwin, the socialization of the EIA revision has been approved by the Bojonegoro community, the village head, and self-help organizations. Reportedly just waiting for finalization. People welcome speech positively.

The company also needs to rearrange the management of oil ready for sale (lifting). Changes are needed in line with plans for increased lifting activities, including replacing vessels with larger ones.

the Banyu Urip Field

Previously, ExxonMobil held a trial on increasing the Banyu Urip Field production at 46 wells site. A total of 30 wells were tested to increase production. The rest is drilled to maintain the balance of oil suction. As a result, production increases are still possible. Additional oil production costs are estimated at only US $ 2.4 per barrel. The value is cheaper than the average development cost of US $ 4.5 per barrel.

The company recorded oil content in Banyu Urip Field at 729 million barrels. ExxonMobil seeks to increase the proven reserves of Cepu Block through exploration at Kedung Keris Field.

Based on preliminary testing, the field is capable of producing up to 5,000 bpd of oil. Cepu Block becomes one of the backbones of the fulfillment of the national ready-to-sell oil production target next year to 825 thousand bpd. That figure is higher than the assumption of the 2017 State Budget of 2017 which is 815 thousand bpd.

Lifting will also be sustained from the production of key work areas such as the Rokan Block (Riau) managed by Chevron Pacific Indonesia of 228 thousand bpd and Pertamina EP (all over Indonesia) 84 thousand bpd.

Blogger Agus Purnomo in SKK Migas

Special Unit for Upstream Oil and Gas Upstream Activities is optimistic that this year's lifting can exceed the target of APBN. Head of SKK Migas Amien Sunaryadi explained that next year's production activities will include development drilling in 223 wells, re-working activities of 860 wells, as well as maintenance of 57,512 wells. 

    In addition, 2D seismic surveys will be conducted on a 3.080 square kilometer land, a 2,795 square kilometer 3D seismic survey, and exploration drilling at 25 wells. The 2017 challenge is added. It is still less than 17 thousand barrels per day, "said Amien.

Koran Tempo, Page-21, Wednesday, May 31, 2017