Correction: Cepu starts oil production

Correction: Production from Banyu Urip is not yet piped to Mudi, but transported by trucks. We apologize for this inconvenience. Editor.

The article should read:

Indonesian unit of oil, gas giant ExxonMobil Corp. said first oil production has started to flow from one well at Banyu Urip field in Cepu giant block in Central Java on Wednesday.

ExxonMobil Oil Indonesia senior official Maman Budiman told Petromindo.Com that production from Banyu Urip A4 well is transported to Mudi production facilities, which is located nearby and jointly operated by Pertamina and PetroChina.

Upstream oil, gas authority Chairman R. Priyono said earlier this month that initial production rate from the field would be at around 500-1,500 barrels of oil per day and is expected to reach 20,000 BPD by the end of February 2009 (first phase). Production would be gradually increased to 165,000 BPD (second phase) in 2012, he said.

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

The partnership had completed drilling six wells consisted of four production wells, one water injection well and gas injection well for the first phase.

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.

The partnership would drill 49 wells, which would consist of 34 production wells, 13 gas injection wells and two gas injection wells in the second phase.(godang)