Bojonegoro Regent issues building permit for EPC 1 Cepu project

By Godang Sitompul

Upstream authority BPMIGAS said the Bojonegoro Regent has formally issued the building permit (IMB) for the engineering, procurement and construction stage 1 (EPC 1) of the oil-rich Cepu block in East Java, operated by Mobil Cepu Limited (MCL), a subsidiary of US-based Exxon Mobil.

The issuance of the building permit paves the way for PT Tripatra, a subsidiary of listed PT Indika Energy Tbk, and Samsung Engineering to start the construction of the project facilities stage 1 (EPC 1) at the Banyu Urip field worth US$746.3 million.

?The stipulation IMB for EPC 1 as well as retribution had been issued by the Bojonegoro Regent yesterday (Monday),? Deputy for Operation of BPMIGAS Rudi Rubiandini told Petromindo.com.

The EPC 1 project will help support the Cepu Block to reach its peak production expected in 2013-2014.

The Cepu block is also the key factor that will determine the fate of Indonesia?s target of oil lifting in 2014. As of today, the country?s production still hovers below 900,000 bpd, far lower than the government?s revised target of 930,000 bpd.

Editing by Roffie Kurniawan