Cepu Block Production Encouraged to Reach 235 Thousand BPD

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) pushed the increase in production at the Banyu Urip Field, Cepu Block to 235 thousand barrels per day (BPD). This increase in production after the approval of the revised Cepu Block environmental impact analysis (Amdal).

Cepu Block

Acting Head of the SKK Migas Program and Communication Division, Susana Kurniasih, said that earlier this year, the production of the Cepu Block had been successfully increased to 220 thousand BPD. Now the oil and gas block production undertaken by Exxon Mobil Cepu Limited (EMCL) will be increased to 235 thousand BPD after obtaining a permit for it.

"We are coordinating with EMCL so that an increase in production of 235 thousand BPD can be realized. Hopefully, this business can be carried out soon, given that all the permits needed to increase production have been obtained, "he said.

The intended production increase permit is an Amdal amendment approval from the Ministry of Environment and Forestry (KLHK) and EMCL installation feasible approval (PLO) to support the production increase issued by the Directorate General of Oil and Gas. In addition, EMCL has also carried out a High Rate Test (HRT) to ensure production facilities are able to operate safely at the level of 235 thousand BPD.

According to him, HRT was implemented in 2019. However, the increase in production of the Cepu Block above 220 thousand BPD, could not have been carried out last year because it had not yet received the Amdal revision approval. Amdal at that time only allowed a maximum oil production of 220 thousand BPD.

"This year, the Amdal revision has been given by KLHK and the PLO has also been approved by the Directorate General of Oil and Gas to produce up to 235 thousand BPD," Susana said.

Optimization of production still takes into account aspects such as subsurface by applying good reservoir management in the Banyu Urip Field and Kedung Keris. In addition, increased production also takes into account aspects of security, reliability of production operations, and environmental impacts.

"It is hoped that the additional production from EMCL can help achieve the national oil and gas production target," he said.

Susan admitted, achieving the oil and gas production target this year was a challenge, especially with the Covid-19 pandemic and low oil prices. Many programs have been planned by oil and gas contractors, eventually, they have to be adjusted due to mobility restrictions. 

    As a result, several programs such as drilling, reworking, and maintenance of wells, and project construction were hampered. He mentioned EMCL as one of the oil and gas producers that we're able to achieve its production targets in the first semester, even exceeding the target of the State Budget.

"However, we are trying to maximize production from these work areas," Susana added.

Exxon Mobil Indonesia's Vice President Public and Government Affairs Azi N Alam expressed appreciation for all parties that have been involved in helping to accelerate the Amdal revision process and ongoing support for Banyu Urip Field operations in general.

"We continue to work closely with SKK Migas for the best efforts to increase the production of Banyu Urip and Kedung Keris by prioritizing security and the reliability of operations during the Covid-19 pandemic, "he said.

Until now, various optimizations in the Banyu Urip Project have proven to contribute more to Indonesia. One of them is the increase in reserves of the Banyu Urip Field by up to two times greater than the first plan of development (POD), from 375 million barrels to 940 million barrels. 

    In addition, Cepu Block oil production was also successfully increased by 33% from 165 thousand BPD to 220 thousand BPD. In fact, until the end of March, oil production from the Cepu Block reached 220,118 BPD from the target of 220 thousand BPD.

Investor Daily, Page-10, Friday, July 17, 2020

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