Cepu peak production may be delayed due to storage facility problem
Saturday, September 27 2008 - 02:16 AM WIB
BPMIGAS has approved an offshore floating storage and offloading unit as part of Cepu's oil production facilities. But the House members said the facilities were expensive and are pushing for an onshore terminal, BPMIGAS deputy chairman Abdul Muin said.
BPMIGAS would evaluate the offshore and onshore storage development plan together with experts from the University of Indonesia and the Bandung Institute of Technology, he said.
"If facilities for oil are changed then full production that was already planned in the end of 2010 may be delayed. That could be delayed for months. But we are still working according to the plan so far to start oil production in the end of 2008," he said.
The Cepu block has estimated oil reserves of about 600 million barrels spread over several wells, including Banyu Urip, the largest field with an estimated reserve of 350 million barrels.
The field is expected to produce crude at full capacity of 165,000 BPD.
State-owned oil and gas firm PT Pertamina and US giant firm ExxonMobil have each 45 percent stake in the field, with the remaining shares owned by the local governments. The field is expected to start production in the end of 2008 with initial production of 5,000-10,000 BPD. (*)