Costs of EPC-1 of Banyu Urip project increase
Friday, June 20 2014 - 07:41 AM WIB
Costs of the Engineering, Procurement, and Construction (EPC)-1 works in the Banyu Urip project proposed by consortium of Tripatra-Samsung, the contractor of the project, to upstream authority SKK Migas have increased, said an official of SKK Migas.
"The proposed costs of the EPC-1 works are higher than the approved budget The proposal is being discussed," SKK Migas Spokesperson Zudaldi Rafdi told Petromindo.com.
He said SKK Migas is not well-informed yet whether the higher costs were due to additional works.
Meanwhile, VP of Public Relations and Government Affairs at ExxonMobil Indonesia Erwin Maryoto said to Petromindo.com that the current cost outlook is still within the approved budget.
?Our top priority is the safe delivery of a reliable project and startup that allows decades of oil production for Indonesia. We are working diligently with our contractors, partners, and the government to progress EPCs and drilling activities to achieve a 2015 peak production target,? he added.
Zudaldi said the construction facility is targeted to be completed in August 2014. The Banyu Urip field is still on track to come onstream in November 2014 with production reaching 40,000 bopd in the beginning and ramping up to 60,000 bopd in the first month, according to him.
?The full output is expected to come in February 2015. The production will gradually rise to reach its peak at 165,000 bopd in March 2015,? he said.
The development of the Banyu Urip project is divided into five work packages, namely EPC-1, 2, 3, 4 and 5. The EPC-1 contract for the construction of production processing facilities worth $ 746.3 million was won by the Tripatra-Samsung Consortium. The EPC-1 contract was signed in August 2011. However, the realization of this project only started in December 2012 due to licensing issues with the Bojonegoro regency government. The EPC-1 works have been 90 percent completed.
The Banyu Urip project in the Cepu block located in the border areas of Central Java and East Java is one of the prime oil and gas projects expected to come onstream this year. The block is jointly operated by Mobil Cepu Ltd and PT Pertamina EP Cepu.
Editing by Johannes Simbolon