Exxon says Cepu gas field development may start 2010

Despite having been involved in talks with potential gas buyers, US oil giant ExxonMobil said it would not start development of its significant gas fields in the giant Cepu block until at least 2010.

?Currently, Cepu partnership is currently concentrating on the development of Banyu Urip oil field. Therefore I think Jambaran gas field development will not start before 2010,? he said on Tuesday interview.

He said that talks with gas consumers such as state gas distribution firm PGN and state fertilizer firm Petrokimia Gresik had been ongoing. ?However, the size of Jambaran gas reserves must be determined with drilling of 3 appraisal wells, before moving into more detailed talks. ExxonMobil and Pertamina have yet planned such drillings in the near future,? he said.

ExxonMobil made two gas finds in Cepu block; Jambaran field, which is estimated to have 1.3 TCF and Cendana field, which is estimated to contain 0.5 TCF. Both fields need further appraisal drillings to determine more accurate reserves size.

PGN earlier said that it had been in talks over possibility to buy Cepu gas and expected gas to flow as early as 2008.

?What Cepu will produce when Banyu Urip comes into production is associated gas with the volume of 50MMCFD maximum. We?ll need the gas for own consumption. If there?s a leftover that could be sold, it?s not much,? Maman said.

ExxonMobil is trying to bring Banyu Urip giant oilfield into production in 2009. The company has recently appointed Brian Boles as general manager of the field project for three years.

ExxonMobil and Pertamina is joint operator at cepu block with 45 percent interest each. (alex)