Exxon to resume Cepu exploration next year

US oil giant Exxon Mobil Corp. will resume exploration activities in Cepu giant oil block next year, a company official said.

ExxonMobil Oil Indonesia spokesperson Maman Budiman said on Tuesday that 2 exploration wells called Alas Tua and Kedung Keris would be drilled next year. According to the seismic results, he said, the targets were gas prone wells.

ExxonMobil halted exploration activities after making big oil and gas finds in the block and involved in lenghty negotiation with Pertamina over the block's contract extension.

Meanwhile, Maman said that EPC tender for development of Banyu Urip oilfield would be open in the first quarter of next year, with EPC contract award seen to be awarded third quarter of next year. He said that construction time would take around 30 months.

The field will able to produce 150,000 barrels of crude per day.

ExxonMobil and Pertamina will have 45 percent working interest each in Cepu block with the remaining 10 percent will be distributed between East Java and Central Java regional governments. (alex/godang)