1st oil from Cepu to flow Dec 10

Upstream oil, gas authority Chairman R. Priyono said first oil from Banyu Urip field in Cepu Block, Central Java will flow on December 10, 2008, with initial production of 500-1,500 barrels of oil per day.

Priyono told parliamentary hearing on Tuesday that the field?s production would reach 20,000 BPOD in late February 2009 and gradually ramped to peak production of 165,000 BOPD in 2012.

The block is jointly operated by US oil, gas giant ExxonMobil Oil Corp. and state oil, gas firm PT.Pertamina, each with 45 percent working interest.

Meanwhile, ExxonMobil Oil Indonesia senior official Maman Budiman said that first oil would be produced from one well. The partnership had completed drilling six wells consisted of four production wells, one water injection well and gas injection well.

The wells, he said, would be connected via pipeline to Mudi production facilities, which is located nearby and jointly operated by Pertamina and PetroChina.

Maman said 10,000 BPD of early production would be sold to Pertamina and 6,000 BPD to a mini refinery that is currently being constructed. Another 4,000 BPD has not yet any buyer, he said.

Maman said the partnership would drill 49 wells, which would consist of 34 production wells, 13 gas injection wells and two gas injection wells, he said.

EPC contractor for second phase production facilities is currently being tendered, he said.(Bernard)