All EPC contracts for Cepu block set for signing

Following the signing of the first engineering, procurement and construction (EPC) contract for oil production facilities in Banyu Urip field in Cepu block, the remaining four EPC contracts will be inked by end of this month. All the contracts are worth US$ 1.3 billion

?Hopefully by end of August all the EPC contracts will be signed,? upstream oil and gas regulator (BP Migas) chief R. Priyono said after signing the first EPC contract on Friday.

With all the EPC contracts targeted to be completed in 36 months, the Cepu block?s full-field production of 165,000 barrels per day will be met as scheduled.

?The contract granting will accelerate full-field production from Banyu Urip field, which will strengthen Indonesia?s energy security,? said PT Pertamina EP Cepu president director Amril Thaib.

Cepu block production facilities include 49 wells in three platforms, a central processing facility and a 95-kilometer pipeline to stream oil to a storage facility and a floating storage and offloading facility (FSO) with a maximum capacity of 1.7 million barrels. Oil tankers will ship oil from the FSO to domestic and overseas customers. (romel)