Cepu block on track to meet production schedule: BPMIGAS
Thursday, August 16 2012 - 12:28 PM WIB
The Cepu block in East Java is on track to meet its production schedule following the issuance by the local administration of a necessary permit for the construction of production facilities there, a senior official of upstream authority BPMIGAS said on Thursday.
The Bojonegoro regency administration in East Java has informed BPMIGAS that the regent had signed the Principal Permit for the construction of the fifth and last production facilities, known as EPC-5, for the development of the Banyu Urip field in the block, calling the agency to pick up the permit, Elan Biantoro, BBPMIGAS? Representative for Java, Bali and Nusa Tenggara.
With the issuance of the construction permit, the entire necessary permits for the full development of the Banyu Urip field have finally been secured
?We just got information from the Bojonegoro regency secretary that the permit has been signed by the regent. Our staff is now heading there to pick up the permit,? Elan said.
?Following the issuance of the permit, the project is now on track to meet its production schedule in which the block is expected to increase its oil output to 90,000 bpd in May 2004 and reach its peak at 165,000 bpd in November in the same year,? Elan said.
The Banyu Urip development project is considered as a strategic project to help increase the country?s oil production. With estimated reserves of around 450 million barrels of oil, Banyu Urip is seen as the largest oil field ever discovered in Indonesia over the past several decades.
Production at Banyu Urip, operated by Mobil Cepu Ltd., currently stands at about 20,000 bpd.
Production facilities to be constructed at the Banyu Urip field include 49 oil wells linked to three rigs, a processing facility, a 95-km oil pipeline, a 1.7 million barrel-capacity floating storage and offloading (FSO) facility, and an oil tanker. Construction of these facilities is divided into five EPC projects worth a combined US$1.3 billion.
Editing by Johannes Simbolon