EMOI, Pertamina to tender $2b Cepu production facilities

Indonesian unit of US giant ExxonMobil Corp. said Wednesday it would start US$2 billion EPC tender for Cepu giant block crude production facilities by the end of this year.

ExxonMobil Oil Indonesia (EMOI) Spokesperson Maman Budiman told reporters that the facilities included 90-km crude pipeline, 165,000 BPD processing facility, 2-million barrel floating storage. The development of the Banyu Urip oil field would also involve drilling of 50 development wells, Maman said.

Maman expected the facilities would be completed by the fourth quarter of 2010, readying the field to produce crude at its designed capacity of 165,000 BPD.

EMOI, together with partner Pertamina plan to have early production of 20,000 BPD from Banyu Urip field by the end of this year.

Meanwhile, a Pertamina EP Cepu official Kunto Wibisono told reporters that based on on-going reserves evaluation, Banyu Urip is estimated to host 350 million barrels of recoverable reserves, but said that the figure could increase due to higher-than-expected carbonate reservoir thickness.

EMOI, Pertamina each has 45 percent interest in the block.(godang)